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What Is AOV? Meaning, Formula and Examples

The average value of each order.

Definition

The average value of each order.

Why it matters

Raising AOV improves profitability per customer.

How it works

AOV = revenue ÷ orders

Example

₹5,00,000 from 1,000 orders is ₹500 AOV.

Common mistake

Discounting so heavily that margin falls.

Using it in practice

Review AOV alongside related metrics rather than in isolation, and agree definitions across your team so reports stay consistent.

Need help putting this into practice?

Gravmo's team can plan and run this for you. See Shopify Marketing and SEO or message us on WhatsApp.

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Frequently asked questions

Is AOV the most important metric?

No single metric tells the whole story; use it with business outcomes.

How often should we review AOV?

Monthly for most businesses, weekly during active campaigns.

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