About

Average Order Value (AOV) is one of the "North Star" metrics for e-commerce businesses. It measures the average dollar amount spent each time a customer places an order. While traffic acquisition is expensive, increasing your AOV is often the most cost-effective way to boost revenue because it extracts more value from existing customers without additional marketing spend.

This tool goes beyond simple division. It features a "Scenario Builder" that allows store managers to perform sensitivity analysis. By adjusting sliders for Revenue and Order Count, you can visualize exactly what shifts are needed to hit a target AOV. Whether you are planning a bundle strategy, a free-shipping threshold, or an upsell campaign, this calculator provides the mathematical foundation for your pricing strategy.

Formulas

The core logic describes the relationship between total revenue and transaction volume:

AOV = Total RevenueTotal Orders

To project required revenue for a target AOV:

Target Revenue = Target AOV × Orders

Reference Data

Industry / Niche	Average AOV (Benchmark)	Low Range	High Range
Fashion & Apparel	$97	$60	$140
Consumer Electronics	$160	$100	$250+
Home & Furniture	$250	$150	$400+
Beauty & Personal Care	$55	$35	$85
Pet Supplies	$60	$40	$90
Food & Beverage	$58	$30	$80
Luxury Goods	$500+	$300	$1000+
Calculation Formula	Revenue / Orders	-	-

Frequently Asked Questions

A 'good' AOV depends entirely on your industry and Cost of Goods Sold (COGS). For high-margin digital products, a lower AOV might be acceptable. For low-margin electronics, a high AOV is critical to cover overhead. Compare your AOV against industry benchmarks rather than a universal standard.

Common strategies include: 1) Product Bundling (buy X and Y together for less), 2) Free Shipping Thresholds (spend $50 to get free shipping), 3) Cross-selling/Upselling at checkout, and 4) Quantity Discounts.

Typically, AOV is calculated on Gross Sales (including tax/shipping) if you are looking at cash flow, but purely on Net Sales (product revenue only) if you are analyzing product performance. Be consistent with whichever method you choose.

It helps in goal setting. If you need an AOV of $75 to be profitable, the builder shows you that for 1,000 orders, you must generate $75,000. If you can only generate $60,000, you immediately see the gap.