Average Order Value (Net) = Net Sales / Number of Orders
Net Sales = (Gross sales - Discounts - Returns)
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 (Net New) vs AOV (Net Returning)
- AOV (Net New) uses Net Sales instead of Total Sales, and measures the average amount spent by new customers when placing first-time orders.
AOV (Net New) = Net Sales from first-time customers / Orders from first-time customers
- AOV (Net Returning) uses Net Sales instead of Total Sales, and measures the average amount spent by returning customers when placing repeat orders.
AOV (Net Returning) = Net Sales from returning customers / Orders from returning customers
Updated about 1 year ago