What is Average Order Value?
Average Order Value (AOV) measures the average amount of money each customer spends per transaction with your business.
Formula
AOV = Total Revenue ÷ Total Number of Orders
Example: If you earn $12,500 from 250 orders, your AOV is $50.
Tracking AOV helps you understand customer purchasing habits and measure the effectiveness of your pricing and marketing strategies. A higher AOV means you're generating more revenue from each customer.