Average Order Value (AOV): Formula & Tips (2026)

Average order value (AOV) is revenue divided by the number of orders. Discover the AOV formula, industry benchmarks, and seven ways to increase it.

Your average order value (AOV) measures the average amount customers spend per order. Shopify’s AOV calculation measures product revenue after discounts and excludes later returns.

It’s a way to gauge your customers’ buying habits and pricing effectiveness, but in some cases a larger order can leave you with less profit. A promotion that offers free shipping in exchange for increased checkout spending, for example, can still lose money once you account for shipping costs and refunds.

Below, learn how to calculate AOV, compare industry benchmarks, and identify orders that skew your average.

What is average order value (AOV)?

Average order value measures the average amount spent per order during a specific period of time. To calculate it, divide revenue by the number of orders placed during that period. Agree on the reporting period and what counts as revenue before comparing AOV across teams or tools.

You can increase AOV through upselling, cross-selling, and incentives for larger purchases. Whether those strategies also increase profit depends on pricing, product costs and the promotions used to encourage each sale.

How to calculate average order value: AOV formula

Calculate average order value by dividing your revenue by the number of orders in the same period:

AOV = Total revenue ÷ Number of orders

Use revenue and order count from the same period to calculate AOV.

For consistency with Shopify’s AOV reporting, use product revenue after discounts, excluding taxes, shipping, and adjustments made after the order was placed, such as returns or exchanges.

In your Shopify admin, go to Analytics > Reports and open Average order value over time. You can also view AOV on the Analytics overview dashboard. Select the date range you want to review or compare with an earlier period.

The Orders over time report also displays AOV, order count, and average units ordered.

AOV calculation example

Let’s say your store recorded $2,000 in product revenue after discounts from 100 orders during one month.

AOV = $2,000 ÷ 100 = $20

A store with $2,000 in revenue from 100 orders has an average order value of $20.

That means customers spent an average of $20 per order. Make sure to count orders individually, even when the same customer places several.

To calculate this in Excel or Google Sheets, enter the following:

Cell	Enter this	Description
B2	2000	Product revenue after discounts
B3	100	Number of orders
B4	=B2/B3	Average order value

Format B4 as currency to display $20. Replace B2 and B3 with figures from another period to update the calculation.

With an AOV of $20, you could test free shipping on orders of $25 or more to encourage shoppers to add another item. Check the margin first—if that extra $5 in sales leaves $2 after product costs, but you pay $4 for shipping, the additional spending won’t cover the shipping cost.

Using modal vs. mean for better insights

A handful of big spenders can pull your AOV up and give you a skewed picture of a typical order. That’s why store owners may want to review different measurement types to get a clearer picture of sales:

• Mean. The sum of all order values divided by the number of orders—this is AOV.
• Median. The middle order value when purchases are sorted from lowest to highest. For an even number of orders, average the two middle values.
• Mode. The order value that occurs most frequently.

Comparing these figures can help you decide which orders to target with an offer. If the mean is much higher than the median, inspect your largest orders before using AOV to set a free shipping threshold.

The mode identifies your most common order value. Look at what shoppers buy at that amount to find relevant add-ons or products to bundle. If few orders share an exact value, group purchases into spending ranges, such as $20 to $29.99 and $30 to $39.99, to find where orders cluster.

Example: Labellov

Luxury resale retailer Labellov sells individually priced designer handbags and accessories. After moving to Shopify in April 2026, their AOV rose to approximately €1,650, up from €1,250 in 2025. (The team also used Shopify Sidekick to create a €100 discount on orders above €2,500.)

“We can easily see how each store is performing, and, more importantly, we now have the data to understand what’s working and make better decisions,” says Elien Migalski, the brand’s managing director.

When reviewing a similar increase in your store, compare the median and the distribution of order values across both periods. This can help you see whether bigger baskets are becoming the norm or a few expensive purchases are pulling up the average.

Check which products appear in the most common baskets before deciding what to recommend alongside them.

What counts toward average order value?

Shopify’s sales reports calculate AOV using the value of products when the order was first placed:

Shopify AOV = (Gross sales − Discounts) / Number of orders

The calculation excludes later order adjustments.

Component	Treatment in Shopify’s AOV
Product sales	Counted at their original order value
Discounts	Subtracted from product sales
Taxes and shipping charges	Excluded
Later returns, edits, and exchanges	Excluded from the calculation
Gift card sales	Excluded from sales reports
Products purchased with a gift card	Counted as product sales

These rules explain why dividing Shopify’s Total sales figure by order count can produce a different result from its AOV metric. Total sales also accounts for taxes, shipping, duties, and fees.

Keep the same calculation when comparing periods. AOV won’t tell you what you kept after refunds and costs, so review those alongside your profit.

Average order value benchmarks by industry

Product prices and purchasing habits vary by industry. A luxury handbag retailer and a beauty brand sell at different price points, so their AOV targets will differ.

Dynamic Yield’s ecommerce benchmarks show the following AOV figures for August 2026 across the retailers in its dataset:

Industry	Average order value ($)
Luxury and jewelry	$569
Fashion, accessories, and apparel	$305
Consumer goods	$48
Home and furniture	$210
Multibrand retail	$107
Food and beverage	$81
Beauty and personal care	$71
Pet care and veterinary services	$52

Compare your store with businesses selling similar products at similar prices. Match the currency and reporting period, and check how each source treats discounts, taxes, shipping, and returns.

Your own sales history is another reference point. Compare AOV with the same period last year, then review conversion rate and profit per order. A higher free shipping threshold could increase AOV but reduce the number of customers who complete a purchase.

7 ways to increase average order value

A few simple tweaks, like setting smarter shipping thresholds or suggesting the right add-ons, can give customers a reason to spend more.

Here are seven practical ways to do it.

1. Create order minimums for free shipping and gifts

A shipping charge can make adding another product feel like the better deal, especially when that addition puts free shipping within reach.

Free shipping can encourage larger orders, but the threshold needs to work for your margins. Start from your median order value. If the median is $35, test free shipping at $45 to $50 and watch conversion rate and profit per order against the month before. Keep it only if both hold. Check to see if AOV increases, and whether it results in more profit.

In Shopify, you can set a free shipping rate with a minimum order amount.

You can also offer a gift above a spending threshold, such as a free travel-size cleanser with a $50 skincare order. Shopify’s Buy X get Y discounts support minimum purchase amounts and free products. Your customers must add the gift to their cart themselves, so make that instruction clear.

Another option is a discount tied to order value. For example, you might offer $10 off orders of $50 or more. You could also offer a 10% discount at that threshold. A fixed discount caps the dollar amount you give away per qualifying order; a percentage discount grows with the eligible order value.

2. Bundle products or create packages

Encourage customers to purchase more items by offering product bundles that cost less than the same items purchased individually. A package built around a specific task saves shoppers the work of finding compatible products.

For example, BioLite’s CampStove Complete Cook Kit pairs a camping stove with cooking accessories. Customers can buy the equipment for preparing a campsite meal in one purchase.

The same logic works for nonphysical catalogs. A creator selling digital courses could package photography and photo editing courses together at a lower combined price.

Choose products that earn their place in the package; avoid pairing a premium product with a low-value extra just to increase the item count. On Shopify, the free Shopify Bundles app lets you create fixed bundles and multipacks on all Shopify plans:

1. Go to Apps > Bundles > Create bundle.
2. Enter a title and select the products and quantities.
3. Click Save and continue, then review the bundle’s price and product details.
4. Set its status to Active, select the sales channels, and save.

For packages customers assemble themselves, use a compatible third-party bundle app. Shopify Plus stores can also work with a developer to build a custom offering using Bundles APIs.

3. Upsell or cross-sell complementary products

Where upselling encourages customers to choose a higher-priced version of a product, cross-selling recommends complementary products, like a protective case for a laptop.

Both can increase the value of a purchase the customer already intends to make. But like any tactic, these suggestions can lose their appeal when overused.

“Don’t upsell too much: recommend as a friend would. Nobody wants to feel like they are being sold to. Your upsell needs to appear helpful and genuine, like how a friend might suggest a product,” Preetam Nath of DelightChat says.

“Instead of simply suggesting other popular items from your store, hand-pick products that pair perfectly with the item in the user’s cart, such as accessories or add-ons. For example, a mouse for a laptop or batteries for a remote control.”

Keep the extra spend proportionate to the purchase. Someone buying $50 to $100 worth of goods may find a relevant $20 add-on easier to justify than another $100 product.

Check out the Shopify App Store to find the right upsell or cross-sell app for your store. Here are a few options:

• One Click Upsell – Zipify OCU. Includes product-page, cart, and one-click post-purchase offers; its in-checkout offers require Shopify Plus.
• Candy Rack. For upsells, cross-sells, and volume bundles, with a built-in cart drawer.
• CartHook Upsell. Create post-purchase and thank-you-page offers, with in-checkout offers available on Shopify Plus.
• Ultimate Special Offers. Set up promotions including bundles, volume discounts, gifts, and upsells.

4. Set up a customer loyalty program

A loyalty program can encourage repeat purchases and larger orders. Points awarded for every purchase give customers a reason to return. Bonus points or rewards tied to a minimum order amount give them a reason to add more to their current basket.

In Deloitte’s 2025 Consumer Loyalty Program Survey, 72% of respondents said loyalty programs made them more likely to spend with their preferred brand, while 56% said they increased their spending because of the program.

For an incentive tied to order size, consider setting a minimum spend to redeem rewards. OSEA’s Sea Rewards program, for example, lets members redeem 500 points for $5 off and sets a $30 minimum purchase for redemption. A maximum of 1,500 points can be redeemed per order.

OSEA’s Sea Rewards members earn points on purchases and can redeem 500 points for $5 off an order. SOURCE: OSEA

An AOV increase isn’t automatic when consumers sign up for loyalty rewards. Deloitte found that consumers belonged to eight loyalty programs, on average, but actively used only five. Display the reward and spending threshold clearly in the cart so members can see what they’ll receive.

Measure order value after reward discounts and check whether the profit from additional products covers the incentive’s cost.

5. Provide live chat support for quick questions

A shopper asking about fit, materials, or compatibility may be one good answer away from buying. Live chat gives you a chance to answer and recommend an upgrade or add-on when it suits their needs.

“Being available through live chat helps customers get their immediate questions answered, which means greater potential for a sale and fewer abandoned items,” says Jaime Schmidt, founder of Schmidt’s Naturals and author of Supermaker: Crafting Business on Your Own Terms.

Schmidt calls live chat an “underutilized weapon” for increasing AOV.

Live chat can help interested shoppers complete purchases. You’ll be chatting with visitors who intentionally came to your site to browse or buy, but who might need specific questions answered to gain the confidence to make a purchase.

Live chat is also useful for high-ticket items, like mattresses and furniture, which may require more discussion before a purchase. A lot of online businesses ask buyers to find and pay for products, usually sight unseen. While online product reviews, testimonials, and other social proof can also help, live chat lets shoppers ask about their specific concerns.

Shopify Inbox allows you to share product links and discount codes directly in the conversation. If someone asks which pillows fit a sofa, for example, send links to compatible options while answering their question.

6. Use AI-powered product recommendations

AI product recommendations can use signals such as browsing activity, past purchases, and cart contents to suggest relevant additions. A recommendation based on what someone is buying can introduce a complementary product they haven’t considered.

AI recommendations can also influence purchases before shoppers reach your store. Shopify’s first-quarter 2026 commerce data found that orders attributed to AI referrals had a 14% higher average order value than those attributed to organic search.

On Shopify, these tools offer different ways to recommend products:

• Shopify Search & Discovery. Suggests related products using purchase patterns, product descriptions, and collections. You can also select complementary products manually. Use a compatible theme to display the recommendations on your product pages.
• Rebuy Personalization Engine. Delivers AI-powered recommendations and upsell offers across product pages, the cart, and checkout.
• Gorgias AI Agent’s Shopping Assistant. Recommends products during customer conversations. The agent can also answer questions using your catalog information.

For example, travel and outdoor brand Db Journey uses Frida, an AI customer service agent built with Gorgias, to help shoppers choose luggage.

“People buy luggage just from chatting with her,” says Chief Digital Officer Theodor Marinius Tollefsen.

The brand reports that Frida sells luggage every week to customers who might otherwise have left undecided.

7. Implement post-purchase upsells

Post-purchase upsells offer customers another product immediately after they complete payment, before the thank you page. Your customers can decline the offer and keep their original purchase. If they accept, the product can be added by editing the existing order.

Shopify apps like ReConvert let you create these offers. For example, a customer buying a moisturizer could see an offer for a matching serum after checkout. Their purchase gives you a specific reason to suggest it.

Check Shopify’s post-purchase restrictions and your app’s compatibility before launching so your upsell can work and your AOV chart will not move. Track it in the upsell app.

For example, offers won’t appear on orders:

• Paid through unsupported wallets or installment services, such as Apple Pay, Google Pay, Klarna, or Afterpay.
• Involving duties and multiple currencies.
• Using local delivery.
• Placed through sales channels other than the Online Store.

Shop Pay isn’t a blanket exclusion—subscription offers have separate restrictions. For example, you can’t add a post-purchase subscription to an order that already contains one.

Track additional revenue and profit in your upsell app, too. The accepted offers edit the original order, and Shopify’s standard AOV calculation excludes later order adjustments. That means the AOV figure may not reflect those additions to the final order total.

Tracking and optimizing your AOV

Track AOV together with order count, conversion rate, and profit per order. These figures show whether customers are spending more, whether enough shoppers are still buying, and how much you earn from each sale.

For new customers, compare the average gross profit from their first order with customer acquisition cost (CAC) for the same customer group. Convert your gross margin percentage into dollars before making that comparison:

First-order gross profit = First-order net revenue x Gross margin percentage

For example, an $80 first order at a 50% gross margin produces $40 in gross profit. If acquiring that customer costs $30, you have $10 left before payment fees, fulfillment expenses, and other operating costs. A higher AOV improves this calculation only if the additional products contribute enough profit.

Customer lifetime value adds context when repeat purchases recover acquisition costs over time. Use actual repeat purchase data and the profit those orders generate to estimate how long that recovery takes.

In Shopify, you can monitor AOV through Analytics or open Average order value over time under Analytics > Reports. Keep the reporting period consistent and compare seasonal periods with the same period in the previous year.

AOV can differ between Shopify and Google Analytics 4 (GA4). Shopify documents tracking differences, including blocked purchase tracking and mismatched reporting time zones. GA4’s figures also depend on the purchase and refund events sent from your store.

Use one platform consistently for AOV comparisons and assess trends within each system. Align dates, currencies, and revenue definitions before comparing absolute figures. Investigate sudden discrepancies, which can suggest a tracking problem.

What a change in your AOV is telling you

Read changes in AOV alongside order volume and revenue for the same period. Use the same revenue definition across all three measures.

Scenario	What does it tell you?	What should you check?
AOV rises, order volume stays flat	Revenue increases because each order brings in more money.	Identify whether customers bought more items, bought more expensive products, or paid higher prices. Check the resulting profit per order.
AOV rises, order volume falls	Larger purchases are offsetting some lost orders. Total revenue can rise, stay flat, or fall.	Check whether a higher spending threshold or price change reduces conversion. Compare total revenue and profit before keeping the change.
AOV falls, revenue stays flat or rises	Order volume has increased enough to offset smaller baskets.	Check acquisition and fulfillment costs. More orders can increase expenses even when revenue holds steady.

Average order value FAQ

Why is average order value important?

Average order value shows the average dollar amount each order brings in. It helps you evaluate whether bundles, upsells, and spending incentives increase purchase amounts. Comparing AOV with order volume and profit per order also prevents you from treating larger baskets as proof that your business is earning more.

What is a good average order value?

There’s no universal good AOV. Your target depends on product prices and the costs of acquiring customers and fulfilling orders. Comparisons with similar stores provide context, but your own profit determines whether an order value is sustainable. A higher AOV is worthwhile when it contributes to greater total profit.

What is AOV and CAC?

AOV is average order value: revenue divided by the number of orders. CAC is customer acquisition cost: acquisition spending divided by new customers acquired during the same period. Comparing CAC with gross profit from first orders shows how much acquisition spending those purchases recover. Repeat purchases can repay the rest over time.

How does personalization improve average order value?

Personalization can increase AOV by recommending additional products that fit a shopper’s interests or purchase. For example, someone buying a shampoo could see a matching conditioner. Product recommendations informed by purchase patterns help shoppers discover relevant additions. The increase depends on customers accepting those suggestions, so measure their effect on spending and profit.

Do product bundles increase average order value?

Product bundles can increase AOV when shoppers buy a package that costs more than the item they originally intended to purchase. Related products give customers a reason to buy the package. Discounts reduce revenue per item, so evaluate the bundle’s profit and conversion rate alongside its order value.