Average Order Volume (AOV) is a key e-commerce and retail metric that measures the average amount a customer spends per transaction over a specific period. It is calculated by dividing total revenue by the number of orders:
AOV = Total Revenue ÷ Number of Orders
AOV helps businesses understand customer purchasing behaviour and assess the effectiveness of pricing, promotions, and product bundling strategies. A higher AOV indicates that customers are buying more or choosing higher-value items per visit.
Marketers often aim to increase AOV through techniques such as upselling, cross-selling, volume discounts, or free shipping thresholds, improving profitability without acquiring new customers.