What is AOV (Average Order Value)?
AOV shows how much customers spend per order on average. The global e-commerce average is around $150, ranging from $68 to $349 by industry.
Formula
Example
If your monthly revenue was $30,000 and you had 200 orders, AOV = $30,000 / 200 = $150. Note: desktop AOV is $230, tablet $154, mobile $149 — device mix can distort the picture.
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Related Terms
Conversion Rate
Conversion rate is the percentage of visitors who become buyers. The global average is 2.5-3%, but industry, device, and traffic source dramatically affect it.
LTV (Customer Lifetime Value)
LTV shows the total value a customer generates over their entire relationship. A healthy LTV:CAC ratio is at least 3:1.
Upsell & Cross-sell
Upsell offers a pricier product; cross-sell offers a complementary one. Both increase AOV at zero extra acquisition cost — in e-commerce, upsell can be 20x more effective for profit.
Cart Abandonment
Cart abandonment means a shopper adds items to cart but does not complete the purchase. The average rate is around 70% — but this represents massive recoverable revenue.