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How do you calculate average order value?
AOV = total revenue ÷ number of orders for the same period. Be consistent about whether revenue includes shipping, tax, discounts and refunds, and compare like-for-like periods, since seasonal campaigns can shift AOV significantly.
Why does AOV matter?
Acquiring a shopper, through ads, content or social, costs roughly the same whether they buy one item or three. A higher AOV spreads that cost across more revenue, improving margin. AOV is also a building block of customer lifetime value.
How can you increase AOV?
- Relevant recommendations. Suggest complementary products that genuinely suit what’s in the cart.
- Bundles and routines. Group products customers typically use together.
- Free-shipping thresholds set a little above your current AOV.
- Confidence. Clear answers about fit, ingredients and returns make shoppers comfortable buying more.
Avoid pushy upsells. Recommendations that ignore the customer’s needs erode trust and increase returns.
How Yep AI uses it
Yep AI Agents recommend products in conversation using your live catalogue and stock, so suggestions are relevant and available. Learn more on ecommerce sales.
