Privy Glossary | Average Order Value

Average Order Value (AOV) is a key ecommerce metric that measures the average amount of money customers spend each time they place an order on your website or through your store.

It’s calculated using this simple formula:

AOV=Total RevenueNumber of Orders\text{AOV} = \frac{\text{Total Revenue}}{\text{Number of Orders}}AOV=Number of OrdersTotal Revenue​

Example

If your store made $10,000 in revenue from 200 orders, your AOV would be $50.

Why It Matters

A higher AOV means you’re generating more revenue per transaction — without needing to acquire more customers. Many ecommerce brands use AOV to:

• Measure the effectiveness of upsells, bundles, and promotions
• Identify opportunities to increase revenue through cross-selling
• Track the impact of pricing or discount strategies