Calculate your average order value (AOV) to measure customer spending behavior and identify ecommerce growth opportunities. Free AOV calculator with insights.
Calculate your average order value (AOV) to measure customer spending behavior and identify ecommerce growth opportunities. Free AOV calculator with insights.
Generated: 1/13/2026, 7:15:42 AM | AskSMB.io
Revenue generated during the period
Number of completed orders
Average Order Value (AOV)
Primary revenue efficiency metric
Orders per $1,000 Revenue
How many orders generate $1,000
Average Order Value (AOV) is a key ecommerce metric that measures the average amount customers spend per transaction. It's calculated by dividing total revenue by the number of orders: AOV = Total Revenue ÷ Total Orders. For example, if your store generated $50,000 from 1,000 orders, your AOV is $50. Unlike metrics like traffic or conversion rate, AOV focuses specifically on how much value you extract from each customer who completes a purchase. Tracking AOV helps you understand customer spending behavior and reveals opportunities to increase revenue without acquiring more customers.
AOV is one of the most cost-effective levers for growing ecommerce revenue. Increasing AOV means getting more value from each customer you've already paid to acquire, making it more efficient than acquiring new customers. For instance, a 20% increase in AOV delivers the same revenue impact as a 20% increase in traffic, but without the additional marketing costs. Higher AOV also improves profit margins because fixed costs per order (payment processing, fulfillment, shipping) are spread across larger transaction values. Most successful ecommerce businesses actively work to increase AOV through product bundling, upselling, cross-selling, and strategic pricing—because it's one of the fastest paths to profitable growth.
AOV and conversion rate measure different aspects of ecommerce performance and should be optimized together, not in isolation. Conversion rate measures what percentage of visitors become customers (efficiency of turning traffic into sales). AOV measures how much each customer spends (value per transaction). A high conversion rate with low AOV means lots of small purchases. High AOV with low conversion rate means fewer but larger purchases. The ideal scenario is optimizing both: convert more visitors AND increase their spending. In practice, there's often a trade-off—aggressive discounting might boost conversion but hurt AOV, while strict minimum purchases increase AOV but reduce conversion. The key is finding the balance that maximizes overall revenue and profit.
AOV has a direct and significant impact on your bottom line. Fixed costs per order—payment processing fees, packaging, shipping labor, customer service—remain relatively constant whether a customer spends $30 or $300. This means higher AOV orders are inherently more profitable because these fixed costs represent a smaller percentage of revenue. Additionally, customer acquisition cost (CAC) is spread more effectively across higher AOV orders. If you spend $40 to acquire a customer, a $50 AOV yields $10 gross profit, while a $100 AOV yields $60—same acquisition cost, 6x the profit. This is why many ecommerce businesses focus on AOV optimization before scaling traffic: it improves unit economics and ensures growth is profitable, not just revenue-generating.
Inputs:
Results:
This store averages $50 per order, which is moderate for most retail categories. To generate $1,000 in revenue, this store needs 20 orders. If they increased AOV to $60 (a 20% improvement through bundling and free shipping thresholds), the same 1,000 orders would generate $60,000—a $10,000 revenue increase without any additional traffic or marketing spend.