Average order value (AOV) is a measure of how much a customer spent on average per order. The higher the AOV, the more profit a store is generating. Let’s say your customer AOV is $50 but you spend roughly $10 to acquire a customer. You can increase your AOV to $100, but that $10 to acquire a customer doesn’t change – you’re investing the same whilst getting more out of each order. You can increase your AOV by introducing discounts on a certain spending threshold, creating product bundles, offering gifts, cross/up-selling, introducing new features, or exclusive perks for loyal customers

The formula for AOV = Sales Revenue / Number of Orders