AOV: Average Order Value

AOV, which stands for Average Order Value, is a key metric in eCommerce that tells you the average amount a customer spends per order. In simpler terms, it tells you how much money customers bring in on average with each purchase. AOV is calculated by dividing your total revenue by the number of orders within a timeframe. The AOV formula is: AOV (Average Order Value) = Total Revenue / Number of Orders Placed A low AOV suggests customers buy small items often, while a high AOV might mean they buy in bulk or splurge on bigger purchases.