What is average order value?
Average order value, or AOV, is total revenue divided by the number of orders over a period. If a store takes $12,000 from 240 orders in a month, AOV is $50. It is the metric bundles, upsells, and free-gift goals move: same traffic, bigger baskets.
How do you calculate average order value?
The formula is revenue divided by orders. A store that did $12,000 from 240 orders last month has a $50 AOV. Add a frequently-bought-together set that one shopper in six accepts, at $36 a set. That is 40 sets and $1,440 more from the same 240 orders. AOV moves from $50 to $56.
The lift needs no new traffic. Those visitors were already paid for; the offer made each visit worth more.
On Shopify stores
Shopify reports average order value in your store analytics: total sales divided by total orders. Stores raise it with offers that make the bigger basket the natural choice: quantity breaks on the product page, a free-gift goal in the cart, a one-time offer on the thank-you page. Raising AOV is cheaper than buying more visitors, because the shopper is already in the store.
Related terms
Average order value with Sledge
Average order value is the number Sledge is built to move. Bundles and upsell placements raise the basket, and built-in Growth Intelligence finds offer opportunities in your order patterns, estimates the monthly impact in dollars, then measures the result against real sales. Proof, not promises.
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