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What does average order value (AOV) mean for my e-commerce store?

Asked 3 years ago

I understand the basic principle of average order value and how to calculate it, so that's not my question. What I mean is that I don't fully understand what the results actually mean. More specifically: How do I know if my average order value is high or low, because isn't it relative to my business? Also, what does a higher average order value mean for me? And what does a lower average order value mean for me?

Average order value (aov)

Scottie Gordon

Saturday, October 02, 2021

AOV (Average Order Value) is a better insight into your business metrics than your website traffic. A high AOV means that the customers are spending more money per transaction. While on the other hand, low AOV implies that your customers are making small purchases in terms of money; AOV works as a key performance indicator!
The business nature determines a high or low AOV; $78 is a high AOV for Amazon, while the same amount is considered a low AOV for a luxury goods site.

Jolina Regin

Monday, April 11, 2022

Average order value (AOV) in digital marketing is a metric that tracks the average amount that a customer spends when he places an order. A high AOV means that you're getting more from each customer while the lower your AOV, the lesser you are getting from each customer.

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