Average order value from revenue and orders — plus units per order and average unit price, the two levers that move it.
Average order value is how much a customer spends per order on average. Use the same revenue definition every time — most stores exclude taxes and shipping, and some subtract refunds — so the number is comparable month to month.
Your store took $64,000 from 800 orders containing 1,840 items. AOV = 64,000 ÷ 800 = $80, with 2.3 units per order at an average of $34.78 each.
AOV sets how much you can afford to pay for each order. Your break-even CPA is AOV × gross margin, so raising AOV from $80 to $95 at a 50% margin lifts the most you can pay per order from $40 to $47.50 — without touching ad performance.
Bundles, a free-shipping threshold just above your current AOV, "frequently bought together" suggestions, and volume discounts all raise units per order. Raising prices or leading with premium products raises the average unit price. Check conversion rate alongside — an AOV gain that costs you orders is not a gain.
How do you calculate average order value? Divide total revenue by the number of orders in the same period. $64,000 from 800 orders is an $80 AOV.
Should AOV include shipping and tax? Usually not. Most teams use product revenue after discounts, excluding tax and shipping. What matters most is using the same definition consistently.
Is AOV the same as revenue per customer? No. AOV is per order; a customer who orders three times has three orders. Revenue per customer over time is closer to lifetime value.
