Average Order Value: 5 Ways To Increase it

Calculating the average order value (AOV): You need to use the following equation: Average Order Value (AOV) = Total Revenue ÷ Number of Orders Placed For example, let’s say that in the month of September, your online store’s sales were $31,000, and you had a total of 1,000 orders.

To calculate the AOV, you would divide the total revenue ($31,000) by the number of orders (1,000): $31,000 ÷ 1,000 = $31 In this case, September’s monthly AOV was $31. It is important to note that AOV is determined using sales per order, not sales per customer.

This means that even if one customer makes multiple purchases, each order would be factored into the AOV separately.

“Monitoring  your average-order-value closely, preferably daily or weekly, can help businesses identify trends and make informed decisions about advertising spend, store layout, and product pricing,” said Retail Expert, Jeanel Alvarado Here are five tips to help you increase your AOV: Offer free shipping with a minimum purchase threshold: Encourage customers to add more items to their carts by offering free shipping if their order surpasses a certain amount…