Average Order Value
What is the Average Order Value?
Average Order Value (AOV) is an ecommerce metric that measures the average amount a customer spends per transaction in your store. It’s calculated by dividing your total revenue by the number of orders during a specific period.
For example, if your store generates $10,000 from 250 orders, your AOV is $40. This number shows how much customers typically spend when they shop with you - and it’s one of the most important indicators of your store’s profitability.
Why Does Average Order Value Matters?
Your Average Order Value reveals how well your store converts browsers into high-value customers. While increasing traffic can help boost revenue, improving AOV allows you to earn more from your existing audience without additional ad spend.
A higher AOV means:
- Better return on ad spend (ROAS)
- Increased customer lifetime value (CLV)
- Stronger cash flow and profitability
- More sustainable business growth
For print-on-demand stores, optimizing AOV can make a huge difference - especially since production and shipping costs stay relatively fixed per order.
How to calculate Average Order Value?
To calculate AOV, use this simple formula:
AOV = Total Revenue Ă· Number of Orders
Let’s say your store earned $5,000 in sales across 100 orders.
Your AOV = $5,000 Ă· 100 = $50.
Tracking AOV over time helps you measure how pricing, discounts, or new product strategies affect spending behavior.
How to increase Average Order Value?
1. Offer product bundles
Combine related items into a bundle at a slightly discounted rate. For example, instead of selling a single phone case, offer a “Phone Case + Screen Protector Bundle” for a few dollars more.
2. Use cross-selling and upselling
Show complementary products on your product display or checkout page. Suggesting upgrades (like premium finishes) or accessories can encourage customers to spend more per order.
3. Set free shipping thresholds
Customers love free shipping - but it should work strategically. Display a progress message such as “You’re $10 away from free shipping” to motivate higher cart values.
4. Add volume discounts
Encourage bulk orders by offering tiered pricing. For example, “Buy 2, Get 10% Off” or “Buy 3, Get 1 Free.” This works especially well for print-on-demand apparel and custom gifts.
5. Highlight limited-time offers
Create urgency with time-based promotions. When shoppers feel they might miss out, they’re more likely to add extra items to their cart.
6. Recommend related products at checkout
Integrate smart recommendations or “frequently bought together” sections near the checkout button to maximize last-minute add-ons.
Best practices for monitoring AOV
To make AOV insights actionable, track it regularly and segment your data by:
- Product category
- Device (mobile vs. desktop)
- Traffic source (ads, organic, social)
- Returning vs. new customers
This breakdown helps you identify what’s working - and where there’s room for improvement.
Why is AOV important for print-on-demand businesses?
In print-on-demand, profit margins can be slim. Increasing Average Order Value means you’re earning more from each sale without spending more on marketing.
Small improvements in AOV - like encouraging customers to personalize products, buy matching accessories, or qualify for free shipping - can multiply your profit margins over time.
When your AOV grows, so does your ability to scale ad campaigns and reinvest in new product launches.
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