Average Order Value (Gross) = Gross Sales / Number of Orders
AOV (Gross) Sales are also known as Top-Line Sales, and do not include additional considerations, such as discounts, returns, taxes, shipping, etc.
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 (Gross New) vs AOV (Gross Returning)
- AOV (Gross New) uses Gross Sales instead of Total Sales, and measures the average amount spent by new customers when placing first-time orders.
AOV (Gross New) = Gross Sales from first-time customers / Orders from first-time customers
- AOV (Gross Returning) uses Gross Sales instead of Total Sales, and measures the average amount spent by returning customers when placing repeat orders.
AOV (Gross Returning) = Gross Sales from returning customers / Orders from returning customers
Updated about 1 year ago