What does Average order value mean?

Average order value, often abbreviated AOV, is a metric that expresses how much a customer spends on average per order. It is calculated as total revenue for a certain period divided by the number of orders in the same period. For example, if an e-shop achieves revenue of CZK 100,000 from 200 orders, the average order value is CZK 500. This metric helps track customer purchasing behavior and evaluate the effectiveness of sales strategies. It can be increased through related product recommendations, attractive bundles, upselling or a free shipping threshold.