Average Order Value (AOV)

Getting traffic is expensive; getting existing customers to spend more is free. Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order. For a Niagara winery, increasing your AOV from $50 to $75 by suggesting a cheese pairing is far more profitable than finding a new customer.

This section covers strategies to boost AOV, such as product bundling (“Buy the 3-Pack and Save”), setting free shipping thresholds (“Free shipping on orders over $100”), and cross-selling at checkout. It is the single most important metric for e-commerce profitability.