What Is AOV (Average Order Value)?
AOV (Average Order Value) is the average revenue per completed transaction, total revenue divided by number of orders. It's one of the three multipliers of ecommerce growth (traffic × CVR × AOV = revenue) and usually the fastest lever to move without spending more on ads.
Also known as: average order value, aov formula, average basket size. This page answers "what is AOV", AOV formula,AOV calculation, and AOV benchmarks for Bangladesh and global performance marketing teams.
Formula
Use net revenue after discounts and refunds if you're comparing AOV to margin. Use gross revenue if you're comparing to ad-platform attributed revenue. Mix them and your economics look better than they are.
Calculate your AOV
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Your AOV
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Worked example
$60,000 revenue from 1,200 orders = $50 AOV. If ads deliver 40,000 sessions at 3% CVR, that's 1,200 orders and $60,000 revenue. Raise AOV to $65 with a $50 free-shipping threshold and a bundle offer, same traffic, same CVR, $78,000 revenue. Zero extra ad spend, 30% more top line.
Benchmarks
- Fashion / apparel: $40 to $90 typical AOV.
- Beauty / skincare: $35 to $75.
- Home / furniture: $150 to $500+.
- Supplements / consumables: $40 to $80 first order, higher on subscription.
- Electronics: $80 to $400 wide range.
Littledata's Shopify benchmark (based on 3,000+ stores) puts the median Shopify AOV at ~$85, with stores in the top 20% clearing $192+ largely through bundles and free-shipping thresholds.
Why it matters
AOV directly funds your CAC ceiling. If you raise AOV by 25% at the same margin, you can pay 25% more per acquisition and stay profitable, which lets you outbid competitors and buy audiences they can't afford. AOV work compounds; it also stays working after you stop.
Common mistakes
- 1.Chasing AOV with big discounts. Higher AOV × lower margin often nets to less profit per order.
- 2.Reporting one AOV across new and returning customers. They behave differently; segment them.
- 3.Ignoring subscription AOV. First-order AOV understates unit economics for subscription businesses.
Put AOV to work
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FAQs about AOV
What is a good AOV?
One that lets you profitably pay for acquisition. A $30 AOV with $18 gross profit and $12 CPA is a great business. A $200 AOV with $40 gross profit and $60 CPA is losing money. Judge AOV against CAC, not against a category number.
How do I raise AOV fast?
In order of easy wins: (1) free-shipping threshold set 25 to 35% above current AOV, (2) 'bundle & save' at checkout, (3) tiered discounts (spend $75 save 10%, spend $120 save 15%), (4) post-purchase one-click upsell.
Does raising AOV always help?
No. If the AOV lift comes from deep discounting, margin per order can fall faster than revenue rises. Track contribution profit per order alongside AOV.
Related terms
Ad spend divided by conversions, the price of one action.
Revenue attributed to ads ÷ ad spend, the fastest efficiency read.
Total gross profit a customer generates across their relationship.
Lifetime value ÷ acquisition cost, the unit-economics gate for scaling.
% of clicks or sessions that complete the target action.
% of customers still active after a given time window.
The ROAS at which ad spend equals contribution margin; below this you lose money on every sale.