Average order value is the average amount spent per transaction. Increasing AOV is one of the fastest ways to grow revenue without increasing traffic or customer acquisition costs.

Calculating AOV

AOV = Total Revenue / Number of Orders

Why AOV Matters

  • Directly increases revenue per customer
  • Improves marketing efficiency
  • Can offset shipping and fulfilment costs
  • Increases profitability without acquisition spend

Strategies to Increase AOV

View AOV Tactics

Free Shipping Thresholds: "Free shipping over £50" encourages larger orders
Product Bundling: Sell complementary items together at slight discount
Upselling: Suggest premium versions of products
Cross-Selling: Recommend related items
Volume Discounts: "Buy 2, save 10%"
Gift with Purchase: Free item when spending over threshold
Financing Options: Buy now, pay later reduces price friction

Where to Implement

  • Product pages (recommendations)
  • Cart page (upsells, thresholds)
  • Checkout (last-chance offers)
  • Post-purchase (email offers)

Testing AOV Tactics

Monitor conversion rate alongside AOV. An aggressive upsell that increases AOV but reduces conversions may not improve overall revenue.