The average order value using Total Sales divided by the Number of Orders

Average Order Value = Total Sales / Number of Orders

Total Sales = (Gross Sales - Discounts - Returns + Taxes + Shipping Charges)

Average Order Value (AOV) is an e-commerce metric that tells you how much, on average, your customers are spending per order on your website. This is measured over a defined period of time (generally in months, quarters, or even years). AOV is always something that you want to increase.

Ways to increase your AOV include: creating customer loyalty programs, running promotions, creating new bundles for items that are frequently purchased together, and re-targeting customers with content and product suggestions that you think they'll be interested in.


AOV (New) vs AOV (Returning)

  • AOV (New) measures the average amount spent by new customers when placing first-time orders.

AOV (New) = Total Sales from first-time customers / Orders from first-time customers

  • AOV (Returning) measures the average amount spent by returning customers when placing repeat orders.

AOV (Returning) = Total Sales from returning customers / Orders from returning customers