Average Order Value (AOV) is a key metric in e-commerce that measures the average amount spent by customers in a single transaction on your webshop. It is calculated by dividing the total revenue by the number of orders over a specific time period.
For example, if your store makes $10,000 from 200 orders, your AOV would be $50. This metric helps you understand how many customers typically spend and can guide strategies for increasing revenue, such as offering free shipping on orders above a certain amount or recommending upsells at checkout.
Tracking AOV is important because it gives you insights into customer behavior and helps identify opportunities to increase the value of each purchase, ultimately growing your business.
