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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