Average Order Value (AOV)

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Definition:

Average order value (AOV) measures the average amount spent per order in an online store.

Why It Matters:

  • Helps evaluate the impact of pricing on basket size.
  • Influences pricing strategies such as bundling or discounts.
  • Useful when analyzing pricing experiments.

Example:

If a store generates $10,000 in revenue from 200 orders, the average order value is $50.