A Deep Dive Into Average Order Value
Rob te Braake
Helping 7- & 8-Figure Online Business Owners Achieve Clarity & Control Over Finances ?? Fractional CFO | FP&A | Accounting | Profit Strategies ?? Turning Financial Data into Growth Decisions ?? Results-Driven Guidance
What Is Average Order Value
In simple terms, average order value is the mean dollar value of each checkout that occurs in your online store.
Average Order Value is abbreviated as AOV. To calculate AOV for your store, use the following formula:
AOV = Revenue / Total Number of Orders
Let’s suppose that Timo runs an online clothing store and his monthly revenue is around $180,000. On analyzing his checkout metrics, he confirms that his store processes around 3,000 orders per month. Dividing total revenue by the total number of orders, he discovers that his AOV is around $60.00.
E-commerce average order value is one of the core metrics for analyzing the financial performance of your e-commerce store.
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