Average Order Value (AOV)
Average Order Value is the mean dollar amount spent each time a customer places an order on your store. It is calculated by dividing total revenue by the number of orders over a given period. AOV is one of the simplest yet most impactful levers for growing revenue without acquiring new customers.
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Average Order Value
$66.67
total_revenuenumber_of_ordersHow to Calculate Average Order Value (AOV)
Why Average Order Value (AOV) Matters
Increasing your AOV means you earn more from every transaction without spending additional money on customer acquisition. Even small improvements in AOV compound over thousands of orders to meaningfully boost profitability. Tracking AOV over time also reveals the effectiveness of upsell strategies, bundling, and pricing changes.
Industry Benchmarks
What is a good AOV? Based on industry benchmarks, an AOV considered low is under $40, average is $40 - $80, and good is $80+. These figures vary by industry, product category, and business model, so use them as directional guidance rather than hard targets.
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Ecommerce Conversion Rate
Ecommerce Conversion Rate is the percentage of website visitors who complete a purchase. It is calculated by dividing the number of sessions that result in an order by the total number of sessions. Conversion rate is a core indicator of how well your store turns traffic into paying customers.
Revenue Per Session
Revenue Per Session is the average amount of revenue generated by each visitor session on your store. It is calculated by dividing total revenue by total sessions. Unlike conversion rate, this metric accounts for both the likelihood of a purchase and the value of that purchase.
Refund Rate
Refund Rate is the percentage of orders that result in a full or partial refund. It is calculated by dividing the number of refunded orders by the total number of orders. A high refund rate can indicate product quality issues, misleading product descriptions, or fulfillment problems.
Cart Abandonment Rate
Cart Abandonment Rate is the percentage of shoppers who add items to their cart but leave without completing the purchase. It is calculated by dividing the difference between carts created and carts completed by the total carts created. This metric reveals how much potential revenue is slipping through the cracks at checkout.
Inventory Turnover
Inventory Turnover measures how many times a business sells and replaces its inventory over a given period. It is calculated by dividing cost of goods sold by the average inventory value. A higher turnover means you are efficiently converting inventory into sales.
Gross Sales
Gross Sales is the total revenue from all sales before any deductions for discounts, returns, or allowances. It represents the full value of everything your store has sold at sticker price. Gross sales is the starting point for understanding your top-line performance before costs erode it.
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