Glossary / AOV
AOV(Average Order Value)
Average order value (AOV) is the average dollar amount of an order in a given period. It is calculated as total revenue divided by total orders. AOV measures how much customers spend per transaction; raising AOV is one of the highest-leverage growth levers for an e-commerce or retail business because it lifts revenue without acquiring new customers.
Formula
AOV = Total revenue / Total orders
Example
If an online store generated $50,000 in revenue from 1,000 orders last month, AOV is $50. If next month revenue grows to $60,000 on 1,100 orders, AOV grows to $54.55 — both volume and per-order spend went up.
Why it matters
AOV is one of the three levers behind every revenue change: more customers, more orders per customer, or higher AOV. Raising AOV via bundling, free-shipping thresholds, or upsells is often cheaper than acquiring more customers.
Frequently asked
Should I track AOV gross or net of refunds?
Both. Gross AOV measures the order-builder strength of your store; net AOV (after refunds) measures actual realized revenue. DashViz reports both by default.
Is AOV the same as average revenue per customer?
No. AOV is per order; average revenue per customer is per buyer. A customer who places 3 orders at $50 each contributes $150 to revenue per customer but only $50 to AOV.
Related terms
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