Average Order Value measures the average dollar amount spent per transaction. Learn how AOV fits into an e-commerce KPI tree.
Average Order Value (AOV) is calculated by dividing total revenue by the number of orders in a given period. In a KPI tree, AOV typically sits one level below revenue as a direct multiplier: Revenue = Orders × AOV. Improving AOV through bundling, upselling, or minimum-order incentives directly increases revenue without requiring additional traffic or customers.