Should AOV include shipping revenue?

Use gross AOV (including any shipping customers paid) for top-line reporting. Use net AOV (excluding shipping) for margin decisions. Both are valid. Be consistent about which you use and make sure any comparison to benchmarks uses the same definition.

How much can I realistically raise AOV?

Most DTC brands can lift AOV by 10 to 20 percent in 90 days with three plays: a free-shipping threshold, a post-purchase upsell, and one bundle offer. Beyond that, gains come from product line expansion, tiered pricing, or a genuine premium SKU. Do not expect 50 percent lifts without a real product change.

Does a free-shipping threshold actually raise AOV?

Yes, when set correctly. Set the threshold 15 to 25 percent above current AOV. Too low (below current AOV) gives away shipping without lifting anything. Too high (30 percent+ above) and customers do not bother. Watch cart abandonment rate for the first two weeks: a poorly set threshold will push it up.

Is a higher AOV always better?

Not if it comes from higher prices that crater conversion rate. AOV matters in context of total revenue. Raising AOV 20 percent while conversion rate drops 25 percent is a net loss. The right metric pair is AOV times conversion rate (revenue per session), not AOV alone.

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Average Order Value Calculator

Average order value is the fastest profit lever most brands ignore. A 15 percent AOV increase drops straight to the bottom line with zero new traffic cost.

AOV = Total Revenue ÷ Total Orders

Total revenue ($)

Total orders

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How to use this Average Order Value Calculator

AOV is one of the three multipliers that drive revenue (traffic, conversion rate, AOV). Most optimization effort goes into the first two. AOV gets the least attention and often has the most leverage. A 15 percent AOV lift on steady traffic and conversion rate is a 15 percent revenue lift at zero incremental CAC.

The AOV levers that work: free-shipping thresholds set 15 to 25 percent above current AOV, bundles that improve cost per unit, post-purchase upsells timed immediately after checkout, and quantity-break pricing. Levers that burn margin without moving AOV: site-wide percent-off discounts, "buy one get one" promos on low-margin SKUs, and tiered discount codes that train customers to wait for the next promo.

Measure AOV weekly alongside traffic and conversion rate. If AOV is drifting down, check discount code usage and product mix. If AOV is drifting up, confirm your margin is not being subsidized by a COGS increase you have not caught yet. Track AOV by acquisition channel (email AOV almost always beats paid AOV) to see which traffic is worth most.

Frequently Asked Questions

The ecommerce median sits around $90 to $110 across all categories. Apparel averages $80 to $120. Supplements and beauty run $45 to $75. Home and furniture run $150 to $400. The benchmark is only useful relative to your CAC: if AOV covers CAC with margin to spare, the absolute number is secondary.

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