
Use one period, such as a month or a quarter, for every figure.
Net product revenue for the period.
Orders placed in the same period.
Leave blank to skip the per-customer figures.
AOV tells you what a basket is worth. To see what a whole relationship is worth, feed it into the customer lifetime value calculator.
See how Mage helps Shopify brands lift repeat purchase rate with loyalty, referrals and store credit.
Average order value is the average amount a customer spends in a single order. It is one of the three levers behind revenue, alongside traffic and conversion rate, and it is usually the cheapest of the three to move. Because it is measured per order rather than per customer, a shopper who buys three times counts three times.
Divide total revenue by the total number of orders in the same period. A store that took $48,000 across 640 orders has an AOV of $48,000 divided by 640, which is $75. Keep both figures on the same window and the same definition of revenue, otherwise the average drifts.
There is no universal target, because AOV is entirely category dependent. A coffee brand selling $22 bags and a furniture brand selling $1,400 sofas can both be excellent businesses with wildly different AOVs. The only comparison that means anything is your own AOV over time, and your AOV against the cost of acquiring the order.
AOV divides revenue by orders, so it only counts people who bought. Revenue per visitor divides revenue by all sessions, so it blends AOV and conversion rate into one number. AOV tells you how big a basket is; revenue per visitor tells you how much traffic is worth. A site can lift AOV and still see revenue per visitor fall if the tactic scares off smaller buyers.
AOV is per order, revenue per customer is per person across the period. Divide one by the other and you get orders per customer. With $48,000 of revenue, 640 orders and 500 customers, AOV is $75 while revenue per customer is $96, because those 500 people placed 1.28 orders each. When revenue per customer is much higher than AOV, repeat purchase is doing the work.
Traffic costs money every single time, whether through ad spend or the ongoing effort behind organic. AOV improvements are built once and then apply to every order that follows, so the cost per extra dollar of revenue keeps falling. A 10% AOV lift on $48,000 of revenue is $4,800 more, with the same visitors and the same order count.
The reliable tactics are bundles and multipacks that make buying more feel like better value, a free shipping threshold set just above your current AOV, volume or tiered discounts such as buy two save 10%, cross sells on the product page, and post-purchase upsells shown after checkout. Post-purchase offers are the safest place to start, because a declined offer cannot cost you the original order.
Commonly 15% to 30% above your current AOV, so it is a stretch rather than a wall. With a $75 AOV that means a threshold somewhere between roughly $86 and $98, and $89 or $95 would both be sensible tests. Set it too high and shoppers ignore it, too low and you hand free shipping to orders that would have converted anyway.
Exclude tax, since that money is collected for the government rather than kept. Subtract discounts and refunds, otherwise the average flatters you with revenue that never landed. Shipping charged to the customer is a judgement call, but whichever way you decide, keep it consistent so month to month comparisons stay honest.
Mixing periods, so revenue covers a quarter while orders cover a month. Counting gross revenue against net orders. Reading a single sitewide number when a promotional week or a handful of wholesale orders has skewed the average. Segment by channel and by new against returning customers, because a blended AOV can hide two completely different behaviours.
Monthly is enough for most stores, with a closer look during and immediately after promotions. Discount periods usually pull AOV down, and if you only look at the blended number you will misread the dip as a product problem. Track the trend over several months rather than reacting to a single week.
Directly. Your acquisition cost has to be repaid out of the gross profit inside the order, so a higher AOV at the same margin means you can profitably bid more for the click. Two stores with identical ad costs can have opposite outcomes if one takes $45 per order and the other takes $110.
Points and VIP tiers give shoppers a reason to add one more item, because the next tier or the next reward threshold is within reach of a slightly larger basket. Store credit works the same way, since credit is usually spent on an order worth more than the credit itself. Rewarding spend rather than orders is what makes the lift show up in AOV instead of just in order frequency.
Yes. No signup, no email and no cap on how many periods you run through it. It is built by Mage Loyalty, a loyalty, referrals and store credit app for Shopify.
Mage is a loyalty, referral and store credit app built for Shopify. Reward repeat purchases, run VIP tiers, and give customers a reason to come back, without writing a line of code.