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Average order value (AOV)

| Article: 4 min read | Analytics

Average order value (AOV) is the average amount of one order over a period: revenue divided by the number of orders. It shows how much a customer spends on average per purchase.

In plain words

A store's revenue breaks down into three factors: visitors × conversion × average order value. AOV is the easiest of the three to influence: you do not have to buy more traffic, it is enough for a person to add one more item to the cart or pick a pricier option.

Formula

AOV = revenue for the period ÷ number of orders for the same period

Example: $2,000 of revenue from 100 orders gives an AOV of $20 (source).

Example of a Ukrainian store (illustrative numbers): in a month, 1,200 orders worth 1,680,000 UAH. AOV = 1,680,000 ÷ 1,200 = 1,400 UAH.

How to calculate it in GA4

In Google Analytics 4, AOV corresponds to the Average purchase revenue metric. It is based on Purchase revenue, the sum of revenue from purchases on the site or in the app minus refunds (Google Analytics Help). The number of orders is the Ecommerce purchases or Transactions metric (the number of completed purchases), filled by the `purchase` event.

For this to work, the site needs a `purchase` event with the order total and the list of products in the `items` array, and a `refund` event for returns (Google Analytics Help). The data appears in the "Ecommerce purchases" and "Monetization overview" reports.

Do not confuse it with ARPPU, average revenue per paying user rather than per order (Google Analytics Help). If a customer bought twice, ARPPU will be higher than AOV.

Important for Ukraine: GA4 sees orders placed on the site. It does not know which of them were not picked up under cash on delivery, and it does not see phone orders. So AOV in GA4 and in the CRM almost always differs. For financial decisions, use CRM data on orders that were actually picked up.

How to raise AOV

Common methods (Corporate Finance Institute):

  • Free shipping threshold. For example, "free Nova Poshta delivery from 1,500 UAH." One tip is to set the threshold about 30% above the average order, but it is more reliable to go by the most frequent order amount (the mode). A threshold that is too high leads to cart abandonment.
  • Cross-sell means related products: a phone case, a filter for a coffee maker. It is better to pick them by hand and offer inexpensive, relevant add-ons.
  • Upsell means a pricier or larger version of the product.
  • Bundles: several products together cost less than separately.
  • Post-purchase offer on the confirmation page, when the purchase is already made and nothing gets in the way of checkout.
  • Gift above a set amount and discount above a set amount. Percentage discounts make profit less predictable.
  • Loyalty program, live chat for expensive products, personal recommendations.

Any change is tested first, with a check that margin grows along with the order value.

Why AOV without margin is misleading

A higher AOV does not always mean higher profit. A few scenarios:

  • A "-15% from 2,000 UAH" discount raised the order from 1,400 to 1,900 UAH, but margin per order fell, because the discount ate more than the added item brought in.
  • Free shipping above a threshold raised the order value, but now the store pays for delivery on almost every order.
  • Assortment shift. Buyers started taking expensive electronics with an 8% margin instead of accessories with a 40% margin. AOV grows, profit falls.

So next to AOV, look at the margin profit per order (see unit economics).

Another trap is the average itself. A few large wholesale orders push the mean up sharply. It is worth looking at the median and the mode too: in a demo store the AOV is $24, while the most common order is $15 (source).

Common mistakes

  • Calculating AOV from placed orders rather than picked-up ones.
  • Comparing AOV from GA4 and from the CRM without understanding why they differ.
  • Setting the free shipping threshold by eye, without the distribution of order amounts.
  • Celebrating AOV growth without looking at margin and conversion: an aggressive upsell can reduce the number of orders.

FAQ

How do you calculate an online store's average order value? Divide revenue for the period by the number of orders for the same period. Count only paid orders that were not returned.

Where can I see AOV in GA4? The "Average purchase revenue" metric in the ecommerce (Monetization) reports. It works if the site has a `purchase` event set up with the order total.

How do you increase average order value? A free shipping threshold, related products in the cart, pricier options, bundles, a post-purchase offer, a loyalty program. Check the effect on margin, not just on the order value.

How is AOV different from ARPPU? AOV is the average amount of one order, ARPPU is the average revenue per paying customer over a period.

Sources

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