AOV (Net)

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.

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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