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What is AOV?

Average Order Value is the average of all orders that your store has received during a specific period.


AOV formula.

Average Order Value = Total Sales / Number of Orders


AOV helps you evaluate the effectiveness of your marketing and pricing strategies. A higher AOV helps you spend more marketing dollars in acquiring the customer (assuming that your profits are higher too). When you are able to spend more marketing dollars to acquire each customer, you can compete better with competitors that have lower AOVs.


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What are the industry benchmarks for AOV?

According to Littledata's survey of 2672 stores in November 2021, the average AOV for Shopify is US$ 100. Anything above US$ 249 will get you in the top 20%, whereas anything below US$ 54 will get you in the bottom 20% (Source:


How can you improve AOV for your store?

You can improve your AOV by increasing the cart size of your customers. You can encourage them to buy more products in the same order or increase the value of each product they order. For instance, if you run an electronics store, you can encourage users to purchase a wireless charger when they purchase an iPhone.

You can introduce bundling of products to increase the cart size too. For instance, you could create bundles of two or more complimentary products that cost less when bought together.

When a customer adds a product to the cart, many online stores (including Amazon) will often provide suggestions on other products that are purchased together. This helps provide a just-in-time nudge to the customer to upgrade his cart.


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