SSkuMath

Average Order Value Calculator

What is each order worth, and what would raising it be worth?

Your numbers

Result

Average order value
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    How this is calculated

    Average order value is the cheapest lever in ecommerce, because raising it costs nothing in additional traffic. This calculator works out your current AOV and projects what a modest improvement would add to revenue and profit.

    1. Average order value = revenue ÷ orders
    2. Units per transaction = units sold ÷ orders
    3. Revenue per unit = revenue ÷ units sold
    4. Additional revenue = (target AOV − current AOV) × orders
    5. Additional profit = additional revenue × contribution margin %

    What to make of the number

    AOV has two components — units per order and price per unit — and they respond to different tactics. Bundles, thresholds and volume discounts move units per order; positioning and packaging move price. Free shipping thresholds are the most reliably effective single tactic, usually adding 10–20%.

    Frequently asked questions

    What is a good average order value?
    It depends entirely on category and price point. Rather than chasing an external benchmark, track your own trend and test changes. The useful question is whether AOV is rising faster or slower than your acquisition cost.
    What is the fastest way to raise AOV?
    A free shipping threshold set slightly above your current AOV. It is easy to implement, customers understand it immediately, and it typically lifts order value by 10–20% without discounting your products.
    Does raising AOV always increase profit?
    Not if you get there by discounting. A volume discount that raises AOV but cuts contribution margin can reduce total profit. Always check the contribution figure, not just the order value.
    How do bundles affect AOV?
    Bundles raise AOV and usually raise margin too, because the second item carries no additional acquisition or shipping cost. They are one of the few tactics that improve both metrics at once.
    Should I track AOV including or excluding shipping?
    Exclude shipping revenue from AOV if you want to compare product performance over time, since shipping charges fluctuate. Include it when calculating contribution, because you pay the actual shipping cost either way.

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