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
Updated 5 months ago