AOV

Average Order Value (AOV) is a critical metric used in e-commerce to gauge the typical amount of money each customer spends during a single transaction. This metric is calculated by dividing the total revenue generated within a specific period by the number of orders placed during that same period.

AOV is a key indicator of consumer purchasing behavior and a vital measure for businesses to understand the effectiveness of their pricing strategies, marketing efforts, and product mix.

By analyzing AOV, companies can identify trends in customer spending, adjust their sales tactics, and strategically plan promotions and discounts to increase the average spend, ultimately boosting overall revenue.