Average Order Value (AOV)

The average amount of money a customer spends each time they place an order with your store. It is a critical lever for profitability.

How to Calculate AOV

AOV = Total Revenue / Total Number of Orders

Why AOV Matters for ROAS

AOV is mathematically linked to ROAS (Return on Ad Spend). If your CPA (Cost Per Acquisition) is constant, increasing your AOV directly increases your ROAS.

Example: You spend $20 to get a customer. If they spend $40, your ROAS is 2.0. If you get them to spend $60 via upsells, your ROAS jumps to 3.0, with no change to your ads.

3 Ways to Increase AOV

• 1 Bundles & Quantity Breaks Offer "Buy 2, Save 15%" or "Starter Kits" that combine complimentary products.
• 2 Free Shipping Thresholds Set your free shipping bar 15-20% higher than your current median AOV to nudge users to add one more item.
• 3 Post-Purchase Upsells Offer a limited-time deal (One Click Upsell) immediately after checkout. This increases revenue without adding friction to the initial sale.

Frequently Asked Questions

By Benchmarketing Research Team Reviewed by Performance Marketing Editorial Reviewed March 2026 · observations Q1 2023 – Q4 2024