How do you calculate AOV?
AOV = Total Revenue / Number of Orders
| Input | Value |
|---|---|
| Total Revenue | $15,000 |
| Number of Orders | 250 |
| AOV | $15,000 / 250 = $60.00 |
What is a good AOV?
AOV varies widely by industry. Higher-ticket items naturally have higher AOVs.| Industry | Average AOV |
|---|---|
| Jewelry & Luxury | $100 - $300+ |
| Electronics | $80 - $200 |
| Fashion & Apparel | $50 - $100 |
| Beauty & Skincare | $40 - $70 |
| Food & Beverage | $30 - $60 |
| Health Supplements | $40 - $80 |
| Home & Garden | $60 - $150 |
AOV in plain English
Think of AOV as the average bill at a restaurant. Some customers order just a coffee ($5), some order the full tasting menu ($150). AOV is the average across all bills. Restaurants boost their AOV with appetizers, drinks, and desserts. E-commerce stores do the same with bundles, upsells, and free shipping thresholds. Why does AOV matter for ads? Because ROAS = AOV / CPA. If your CPA stays the same but your AOV goes up, your ROAS goes up automatically. It’s the one lever that improves your ad performance without touching your ads.Common AOV mistakes
Treating AOV as a fixed number
Treating AOV as a fixed number
AOV changes over time, by season, by product mix, and by customer segment. New customers often have lower AOV than repeat buyers. Track AOV weekly and segment it by campaign and audience.
Ignoring AOV when evaluating ad performance
Ignoring AOV when evaluating ad performance
Two campaigns with the same CPA can have very different profitability if one drives $40 orders and the other drives $120 orders. Always look at AOV alongside CPA and ROAS.
Discounting to drive volume without watching AOV
Discounting to drive volume without watching AOV
Running 40% off sales brings in more orders but can crush your AOV and margins. If a sale drops your AOV from $80 to $50 and your margin from 50% to 20%, your break-even ROAS jumps from 2.0x to 5.0x.
How AOV relates to other metrics
| Metric | Relationship |
|---|---|
| ROAS | ROAS = AOV / CPA. Higher AOV directly improves ROAS. |
| CPA | Your maximum CPA = AOV x Profit Margin. Higher AOV means you can afford more per acquisition. |
| Break-Even ROAS | AOV doesn’t change break-even ROAS (margins do), but higher AOV means more profit dollars at the same ROAS. |
| LTV | AOV x Average Purchase Frequency = LTV. Both matter for long-term profitability. |
| Conversions | Revenue = AOV x Conversions. Growing either metric grows revenue. |
How to increase your AOV
Add a free shipping threshold
Set free shipping at 20-30% above your current AOV. If your AOV is $50, offer free shipping at $65. Customers will add items to hit the threshold rather than pay for shipping.
Create product bundles
Bundle complementary products at a slight discount vs. buying individually. A $30 moisturizer + $20 serum bundle at $45 increases AOV from $30 to $45 while the customer feels they got a deal.
Implement post-purchase upsells
After checkout, offer a related product at a discount. Even a 10-15% upsell acceptance rate can meaningfully increase your average order value.
Use tiered pricing or volume discounts
“Buy 2, get 10% off” or “Buy 3, get 20% off” encourages larger orders. The key is ensuring the discount doesn’t eat your margins.
Set your AOV in AdAdvisor
Enter your AOV in business settings. AdAdvisor uses it alongside your break-even ROAS to calculate whether campaigns are hitting profitable thresholds.
Monitor how AOV impacts your profitability
AdAdvisor uses your AOV alongside your break-even ROAS to evaluate campaign performance. When you increase your AOV, your campaigns become more profitable automatically because each conversion earns more revenue.Try AdAdvisor Free
Set your AOV and see how it affects your campaign profitability scores.
ROAS Calculator
See how different AOV scenarios change your break-even ROAS.