AOV

Category: E-commerce

Also searched as: Average order value

Definition (plain English)

Average order value is revenue divided by order count for a channel, customer segment, or period.

Why it matters commercially

AOV affects fulfillment economics, free-shipping thresholds, contribution margin, and whether imported stock can absorb pick, pack, payment, and return costs.

Example

An online wholesaler lifted AOV by requiring case multiples for low-margin pantry items, which reduced per-order handling cost.

Common mistake

Raising AOV with bundles or discounts without checking gross margin, shipping weight, payment fees, and return behavior.

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