What is Average order value (AOV)?
Average order value is the total revenue from orders in a period divided by the number of orders in that period. A store that took 20,000 dollars from 400 orders has an AOV of 50 dollars.
AOV rises when shoppers add more items or pick pricier ones, which is why gifts with purchase, bundles, upsells and free shipping thresholds are all described as AOV levers.
A higher AOV is not automatically more profit: a discount that lifts AOV can still lower the profit per order. Compare profit per order before and after an offer, not AOV alone.