Average Order Value (AOV)

What is Average Order Value (AOV)?

Average Order Value (AOV) is a key eCommerce metric that measures the average amount a customer spends per transaction. It’s calculated by dividing total revenue by the number of orders within a given period. AOV helps retailers understand customer purchasing behavior and evaluate the effectiveness of pricing, promotions, and upselling strategies.

Formula:
AOV = Total Revenue ÷ Number of Orders

‍

Why AOV Matters in Fashion eCommerce? 

A higher average basket size indicates that shoppers are purchasing more or choosing higher-value products. Increasing AOV directly impacts profitability without the need to acquire new customers, making it a critical KPI for sustainable growth.

‍

How to Increase Average Order Value:

• Use product recommendations and AI-powered upselling to suggest complementary items.
• Offer bundles, volume discounts, or free shipping thresholds.
• Highlight premium options or styling suggestions to inspire higher-value purchases.
• Personalize offers based on browsing and purchase history.
  
  

AOV Benchmarks and Insights

A “good” AOV varies by industry and region, but fashion eCommerce brands often track AOV to assess the impact of marketing campaigns, discounts, and personalized recommendations on overall revenue growth.

‍