Ecommerce

    AOV (Average Order Value)

    The average amount of money spent each time a customer places an order on a website.

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    Key Takeaways

    • Increasing AOV is often more profitable than increasing traffic: no additional acquisition cost for the extra revenue.
    • Free shipping thresholds set 20-30% above current AOV are the single most effective AOV optimization tactic.
    • A $5 AOV increase across 10,000 monthly orders adds $50,000/month ($600,000/year) with zero additional ad spend.

    Proven AOV Optimization Strategies

    StrategyTypical AOV LiftImplementation Effort
    Free shipping threshold10-15%Low (change shipping rules)
    Product bundling15-25%Medium (create bundle offers)
    Cross-sell recommendations5-10%Medium (recommendation engine)
    Volume/tiered discounts10-20%Low (pricing rules)
    Post-purchase upsell5-15%Medium (checkout customization)

    Start with free shipping thresholds as the lowest-effort, highest-impact AOV tactic. If your current AOV is $60, set free shipping at $75. Shoppers routinely add items to reach the threshold rather than pay for shipping.

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