Glossary · A
Average Order Value (AOV)
Definition
What is Average Order Value (AOV)?
Average Order Value is the average revenue generated by each completed order during a defined period. It is typically calculated by dividing revenue by order count.
Business context
Why does it matter?
AOV helps teams evaluate bundles, merchandising, thresholds, and recommendations. It should be read alongside conversion, margin, and repeat purchase behavior so a higher basket does not hide weaker economics.
Decision prompts
Three questions to ask in practice
- 01
Which business outcome does this metric or practice represent?
- 02
Are data sources and attribution rules consistent?
- 03
What adjacent metric could be harmed while this one improves?
Understanding the term is the start. Making the tradeoff is the work.
If you are evaluating Shopify Plus, headless architecture, growth systems, or cross-market operations, Tenten can help frame the decision.