Average Order Value (AOV)
Definition
Average Order Value (AOV) is the average amount of money a customer spends per order on your WooCommerce store. It’s calculated by dividing total revenue by the number of orders in a given period.
Formula:
<code>AOV = Total Revenue / Total Number of Orders</code>
Good or Bad?
Higher AOV is good, it means you’re earning more per transaction.
Low AOV might indicate you’re attracting budget shoppers or not upselling effectively.
Why It Matters?
AOV is a key performance metric for profitability. If you can increase it without raising traffic or ad spend, you instantly boost your revenue and ROI.
It also helps you plan discounts, free shipping thresholds, and product bundles more strategically.
Common Mistakes
- Focusing only on traffic without looking at how much customers spend
- Offering too many low-priced items without cross-sells or upsells
- Not testing thresholds for free shipping or discounts
How to Improve It?
- Set minimum cart amounts for checkout or free shipping
- Use product bundles or “frequently bought together” suggestions
- Offer volume discounts or tiered pricing
- Highlight premium or related items on product pages
Recommended Plugin
Order Minimum/Maximum Amount for WooCommerce
This plugin helps increase AOV by allowing you to set minimum subtotal rules per order.
You can apply rules based on user roles, product categories, shipping method, or payment method, guiding customers to spend more.
Real-World Example
You notice most of your customers check out with just $12 worth of products. You set a $25 minimum for checkout and offer free shipping above $30.
A few weeks later, your AOV jumps to $27, with no extra ad spend.
Related Terms
- Minimum Order Amount
- Upselling
- Cross-Selling
- Customer Lifetime Value (CLV)
FAQs
What is a good AOV in WooCommerce?
It depends on your niche, but in general, higher AOV = higher profitability. Monitor it regularly to understand your store’s health.
How do I calculate my AOV?
Divide your total revenue by the number of orders over a specific period.
Which plugin helps increase AOV in WooCommerce?
WPFactory’s “Order Minimum/Maximum Amount” plugin lets you encourage higher spending through smart cart rules and purchase incentives.
