An ecommerce metric that measures the average amount of revenue per transaction.
Average Order Value (AOV) is a straightforward calculation.
Number of Orders
Because it includes total revenue, AOV encompasses many of the important things that happen on an ecommerce site. Along with conversion rate, it offers feedback on if a site is making the most of it’s opportunities. But unlike conversion rate, which involves persuading some people who are unsure of buying from you, AOV involves influencing your actual buyers to spend more.
How to calculate AOV?
Divide your revenue by the number of orders. You can use the AOV calculator below.
How to find AOV in Google Analytics?
In Universal Analytics, the old version of Google Analytics, go to Conversions > Ecommerce > Overview and “Avg. Order Value” is already calculated for you under the “Transactions” heading.
In Google Analytics 4, go to Reports > Monetization > Ecommerce purchases where the top row has totals for “Ecommerce Purchases” and “Item Revenue” (excludes shipping & taxes), and you will need to calculate the AOV.
How to increase AOV?
Namogoo’s advanced guide for AOV includes 12 methods to increase Average Order Value. The include implementing a minimum shipping threshold, offering a free gift card for purchases above a certain amount, bundling complementary products, placing high value products prominently, cross-selling and upselling, among other things. For the full list, including examples with screenshots, visit namogoo.com/blog/conversion-rate-optimization/average-order-value/
How to find out why AOV decreased?
First, don’t just look at the previous month. If possible, use a grid including all of the months of the year, and some prior years. Then you can see if there is a prolonged trend, when it started, and if seasonality may play a role.
Next, you can look at changes in the top top products and product categories, plus the average number of items per order. You can also segment AOV by channel and if particular channels had decreases, or if lower-AOV channels increased their share of sales.
What is a good AOV?
Growcode has a good overview of AOV benchmarks: overall by county (with links to several sources), and detailed breakdowns by industry, channel/source, device and platform. To see all the charts and sources, visit growcode.com/blog/average-order-value/