Average Order Value (AOV)

AOV (Average Order Value) is the average amount a customer spends per order, calculated as total revenue divided by the number of orders over a period. It is a direct lever on unit economics: raising AOV through bundling, upsells, or thresholds lifts revenue without paying again to acquire the customer. Because it sits alongside conversion rate and purchase frequency in the revenue equation, a higher AOV widens the gap between LTV and CAC. It is one of the cheapest growth levers a brand can pull.