On this page
Average Order Value (AOV) — The average amount a customer spends in a single order on your store.
What Is Average Order Value?
AOV is calculated over a set period — a day, a week, a month — by dividing total revenue by the number of orders. A rising AOV means customers are buying more per visit, without you needing more traffic to grow revenue.
How to Calculate AOV
Formula: Total Revenue ÷ Number of Orders.
AOV Example
$4,000 in revenue from 160 orders in a month: $4,000 ÷ 160 = $25 AOV.
Why AOV Matters for Dropshippers
Raising AOV — through bundles, upsells, or a free-shipping threshold — is often cheaper than acquiring new customers, especially when your customer acquisition cost is already tight.
FAQ
What's a good AOV for a dropshipping store?
There’s no universal number — it depends on your product price point. The more useful benchmark is whether your AOV is trending up over time.
How can I increase my AOV?
Common tactics include product bundles, quantity discounts, and a free-shipping threshold set just above your current average order.
Does AOV account for discounts and returns?
The basic formula uses the revenue actually collected, so discounts are already reflected; most stores calculate AOV before subtracting returns and refunds.