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What Is Average Order Value in Shopify?

Last updated on October 2, 2022 @ 2:48 am

Average order value (AOV) is a metric that measures the average amount spent per order on your Shopify store. It’s a valuable metric to track because it can give you insights into the spending habits of your customers, and can help you to optimize your pricing and product mix.

To calculate your AOV, simply take the total revenue from your store over a period of time, and divide it by the number of orders placed during that period. For example, if your store generated $100,000 in sales over the course of a month, and you had 2,000 orders during that same period, your AOV would be $50.

There are a few things to keep in mind when interpreting your AOV:

– A higher AOV is not necessarily better than a lower AOV. It all depends on your business model and what your goals are.

PRO TIP: When calculating your Average Order Value in Shopify, be sure to take into account any shipping or taxes that may be associated with each order. This will give you a more accurate representation of your average order value.

For example, if you’re a high-end luxury retailer, you’ll likely have a lower AOV than if you’re a mass-market retailer. That’s because luxury goods tend to be more expensive than mass-market goods.

– Your AOV can be affected by changes in your pricing or product mix. If you raise prices on some of your products, or add new higher-priced products to your store, your AOV will increase. Similarly, if you run sales or promotions that offer discounts on certain products, your AOV will decrease.

– Your AOV can also be affected by changes in customer behavior. If you start attracting higher-spending customers, or if your customers start placing larger orders, your AOV will increase. Conversely, if you start attracting lower-spending customers, or if they start placing smaller orders, your AOV will decrease.

Average order value is a valuable metric for any ecommerce business to track. By understanding how it works and what factors can influence it, you can use it to make strategic decisions about pricing, product mix, and customer acquisition.

Kathy McFarland

Kathy McFarland

Devops woman in trade, tech explorer and problem navigator.