Average Order Value (AOV) is one of the most important metrics for any business owner, especially if you're selling digital products, courses, subscriptions, or downloads.
Let’s break it down:
Average Order Value is the average dollar amount your customer spends each time they make a purchase from you.
In simple terms:
AOV = Total Revenue ÷ Number of Orders
For example:
If you made $1,000 from 25 orders, your AOV is $40.
AOV helps you understand the buying behavior of your customers. It's not just about how many people visit your store. It's about how much each customer spends per order.
Here’s why it’s such a powerful number:
• It tells you how well your offers and pricing are working together.
• It reveals whether you’re leaving money on the table.
• It helps you build better strategies around upsells, bundles, and bonuses.
Knowing your AOV gives you a clear picture of:
• What’s working: Are customers buying your bundles? Are they upgrading to higher tiers?
• Where to optimize: Should you add an upsell? Adjust your pricing? Offer limited-time bonuses?
• How to scale: You can confidently spend more on ads or marketing when you know how much you earn per order.
📈 It’s not just a number; it’s your compass for making smarter business decisions.
Here’s what happens when you understand and track your Average Order Value:
Instead of chasing more customers, AOV helps you earn more from the ones you already have.
Like:
• One-click upsells
• Order bumps
• Premium add-ons
• Bundled digital products
Even a $5 increase in AOV can dramatically grow your revenue over time.
If your AOV is $45, and you're spending $10 to acquire a customer, you're in great shape. But if your AOV is only $12, you might be burning money without realizing it. Knowing your AOV helps you make confident, data-backed decisions.
Investors, partners, and collaborators love businesses that understand their numbers. A strong AOV shows you know your value and how to optimize it.
Curious about your current AOV? Want to test how a new pricing strategy could affect your income?
Use the free AOV Calculator on this page to quickly run the numbers and get insights in seconds.