Worked examples
Mid-priced DTC store
| Total revenue | $24,000.00 |
| Number of orders | 300 |
| Average order value | $80.00 |
| Orders per $1,000 revenue | 12.50 |
An $80 AOV — a common range for apparel and accessories stores.
After adding a bundle offer
| Total revenue | $28,500.00 |
| Number of orders | 300 |
| Average order value | $95.00 |
| Orders per $1,000 revenue | 10.53 |
Same 300 orders at a $95 AOV — $4,500 more revenue from the same traffic.
Frequently asked questions
Should AOV include shipping, taxes and discounts?
Pick one convention and hold it. Most operators use product revenue after discounts, excluding tax, and exclude or include shipping consistently. What breaks analysis is switching definitions between periods — an AOV "increase" that is really a tax-inclusion change leads to bad decisions. Whatever you choose, apply it identically to every month you compare.
What are the most effective ways to raise AOV?
Free-shipping thresholds set 15–30% above current AOV, bundles that package complementary products at a slight discount, post-purchase one-click upsells, and volume pricing on consumables. Threshold offers tend to work fastest: customers reliably add items to clear a "$10 away from free shipping" bar. Test one lever at a time so you can attribute the lift.
Is a higher average order value always better?
Not automatically. Pushing AOV with aggressive upsells can depress conversion rate, and heavy bundle discounts can raise AOV while lowering margin per order. The number to protect is contribution margin per order — AOV × margin% — and revenue per visitor, which combines AOV and conversion. If those rise with AOV, the change is genuinely working.
How does AOV interact with CAC and ad profitability?
Directly: on first orders, AOV × gross margin is the ceiling on what you can pay to acquire a customer and break even immediately. An $80 AOV at 40% margin leaves $32 of first-order margin, so a $40 CAC means going $8 underwater on order one and relying on repeat purchases to recover it. Raising AOV widens that first-order room instantly.
Related calculators
- Customer Acquisition Cost (CAC) Calculator
- Customer Lifetime Value (LTV) Calculator
- LTV to CAC Ratio Calculator
- Break-even ROAS Calculator
- All calculators
Part of the Unit Economics collection.