Published on 2025-06-22T01:59:17Z

What is Average Order Value (AOV)? Examples from Plainsignal and GA4

Average Order Value (AOV) is a key e-commerce metric that measures the average dollar amount spent each time a customer places an order. It is calculated by dividing total revenue by the number of orders within a given time period. AOV helps online retailers understand customer purchasing behavior, optimize marketing spend, and identify opportunities to increase sales per transaction. By tracking AOV over time, you can gauge the impact of pricing strategies, promotions, and website UX changes. Analytics platforms like Google Analytics 4 (GA4) and Plainsignal can automatically calculate or customize reports to monitor AOV. Setting benchmarks and comparing AOV across segments provides actionable insights to improve revenue and profitability.

Illustration of Average order value (aov)
Illustration of Average order value (aov)

Average order value (aov)

Average Order Value (AOV) measures average revenue per order to optimize sales strategies and revenue growth.

Why Average Order Value Matters

AOV provides insight into the average spending per transaction, serving as a direct indicator of revenue health. A higher AOV means each customer transaction generates more revenue, which can improve profitability without acquiring additional customers. Tracking AOV helps businesses assess the impact of pricing, promotions, and cross-selling tactics. It also guides marketing investment by revealing which channels generate higher-value orders.

  • Revenue efficiency

    AOV highlights how effectively your store turns visits into revenue. Increasing AOV is often more cost-effective than acquiring new customers because you maximize value from existing traffic.

  • Marketing roi

    By comparing AOV across marketing channels, you can allocate budget to the highest-performing campaigns that deliver larger orders.

How to Calculate AOV

Compute AOV using revenue and order data over a defined period to ensure consistency in reporting. The standard formula divides total revenue by the total number of orders. Consider selecting appropriate time frames (daily, weekly, monthly) to spot trends and seasonal fluctuations.

  • Basic formula

    Use the basic formula AOV = Total Revenue / Number of Orders. For example, if you earned $10,000 from 200 orders in a week, AOV is $50.

  • Reporting periods

    Choose reporting periods that align with your business cycle. Short windows can be volatile; longer windows smooth out fluctuations.

    • Seasonality:

      Adjust periods to account for holiday spikes or promotional events to avoid skewed AOV.

Tracking AOV with Analytics Tools

Analytics platforms streamline AOV tracking, offering built-in metrics and customizable reports. Below are approaches using GA4 and PlainSignal.

  • Google analytics 4 (ga4)

    In GA4, navigate to Monetization > Overview to view the Average Purchase Revenue per Purchase metric, which is equivalent to AOV. You can also create a custom exploration report by adding the Purchase Revenue metric and dividing by Total Purchases.

  • Plainsignal implementation

    PlainSignal provides a lightweight, cookie-free solution to capture order and revenue data for AOV tracking. Install the tracking snippet on your site as shown below, replacing the domain and data ID as needed.

    • Tracking code snippet: 
      <link rel="preconnect" href="//eu.plainsignal.com/" crossorigin />
<script defer data-do="yourwebsitedomain.com" data-id="0GQV1xmtzQQ" data-api="//eu.plainsignal.com" src="//cdn.plainsignal.com/PlainSignal-min.js"></script>

Best Practices to Improve AOV

Implement strategies to encourage customers to spend more per order. Common tactics include upselling, bundling, and offering incentives for higher order totals.

  • Upselling and cross-selling

    Recommend related or upgraded products at checkout to increase order size. Present these recommendations contextually based on cart contents.

  • Free shipping thresholds

    Set a minimum order value for free shipping to motivate customers to add more items. Ensure the threshold is slightly above your current AOV.

  • Product bundles

    Offer product bundles at a discounted rate compared to individual purchases, increasing perceived value and order size.

Common Pitfalls and How to Avoid Them

Beware of misleading AOV interpretations and data tracking issues that can skew insights.

  • Promo and discount effects

    Heavy discounting can temporarily increase AOV but erode profit margins. Track AOV alongside margin to maintain profitability.

  • Data completeness

    Ensure all revenue streams (e.g., shipping fees, tax) are consistently included or excluded in revenue calculations. Incomplete data leads to inaccurate AOV.

  • Small sample sizes

    Low order volumes can cause volatile AOV. Use longer reporting periods or aggregate data for stability.

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