{"id":2791,"date":"2026-08-20T12:42:52","date_gmt":"2026-08-20T10:42:52","guid":{"rendered":"https:\/\/mairateam.com\/?post_type=glossary&p=2791"},"modified":"2026-08-20T15:56:04","modified_gmt":"2026-08-20T13:56:04","slug":"aov","status":"publish","type":"glossary","link":"https:\/\/mairateam.com\/en\/glossary\/aov\/","title":{"rendered":"AOV"},"content":{"rendered":"

AOV<\/strong>, Average Order Value, is revenue divided by the number of orders. It is one of the three growth levers next to customer count and purchase frequency, and often the cheapest one: raising the basket value monetises traffic that is already paid for, while additional traffic has to be bought.<\/p>\n

In short<\/h2>\n\n\n\n\n\n\n
Formula<\/strong><\/td>\nAOV = revenue \/ number of orders<\/td>\n<\/tr>\n
Why it matters<\/strong><\/td>\nA higher AOV raises margin per order, and with it the CAC ceiling and ad profitability<\/td>\n<\/tr>\n
How to raise it<\/strong><\/td>\nProduct add-ons, bundles, free shipping thresholds, volume offers<\/td>\n<\/tr>\n
What to watch<\/strong><\/td>\nThe average is sensitive to outliers. Track the median and the basket distribution alongside it<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How it is calculated<\/h2>\n

Formula and inputs<\/h3>\n

AOV = revenue \/ number of orders for the same period and the same segment. Before the number is used, it must be clear which revenue it comes from: including or excluding VAT, gross or net. Ad platforms and analytics often receive the gross order value including VAT at the moment of purchase, including shipping charged to the customer and before cancellations and returns; it depends on how tracking is set up. Order economics uses net: product revenue excluding VAT, after discounts, without shipping fees and without canceled and returned orders. Margin is calculated on the net basis, so AOV has to be as well. Alongside the average, track the median and the basket distribution, because a few large orders lift the average without the typical basket changing at all.<\/p>\n

Worked example<\/h3>\n

Worked example: a store had 2,000 orders in a month and revenue of \u20ac290,400 including VAT, as reported by the ad platform. Step by step:<\/p>\n\n\n\n\n\n\n\n\n
Step<\/strong><\/td>\nCalculation<\/strong><\/td>\nResult<\/strong><\/td>\n<\/tr>\n
AOV including VAT<\/td>\n\u20ac290,400 \/ 2,000<\/td>\n\u20ac145.20<\/td>\n<\/tr>\n
AOV excluding VAT (21%)<\/td>\n\u20ac145.20 \/ 1.21<\/td>\n\u20ac120<\/td>\n<\/tr>\n
Margin per order (30%)<\/td>\n\u20ac120 \u00d7 0.30<\/td>\n\u20ac36<\/td>\n<\/tr>\n
Break-even CPA<\/td>\nequals margin per order<\/td>\n\u20ac36<\/td>\n<\/tr>\n
Break-even ROAS<\/td>\n120 \/ 36, or including VAT 145.20 \/ 36<\/td>\n3.33, or 4.03<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Break-even CPA is the highest cost per order at which advertising loses nothing; every euro above it is a loss on the order. When AOV rises to \u20ac150 excluding VAT at the same 30% margin, margin per order is \u20ac45 and break-even CPA moves to \u20ac45. Break-even ROAS stays at 3.33 because the margin percentage has not changed: AOV moves the ceiling on the cost per conversion, not the ROAS threshold.<\/p>\n

The free shipping threshold and how to check it<\/h3>\n

The threshold is set in the VAT-inclusive prices the customer sees and starts from the median, not the average. With a basket median of \u20ac110 including VAT and an average of \u20ac145.20, a threshold of \u20ac139 sits just above the half of orders it is meant to nudge into adding an item, and below the average that large orders pull up. Margin check: a customer who tops up to reach the threshold adds \u20ac29 including VAT, that is \u20ac24 net of VAT, and at a 30% margin \u20ac7.20 of that remains. The shipping the store absorbs costs \u20ac6.90. So the threshold pays for itself, but only just; at \u20ac8.90 shipping it would have to sit higher for the basket uplift to cover the shipping. A threshold above the average basket targets a minority of customers and barely moves AOV.<\/p>\n

Why AOV changes the advertising math<\/h2>\n

A worked example: a shop with an AOV of 120 and a 30 percent margin earns 36 per order. When the average basket grows to 150, margin per order rises to 45. Campaigns that used to end just below zero move into profit without a single change in the account, and the company can afford higher bids than a competitor with a weaker basket. AOV is therefore an advertising lever, not just an operations number.<\/p>\n

From our own practice<\/h2>\n

In audits we look at AOV before we look at campaigns: when the problem sits in order economics, no campaign optimization will save it. The most common quick wins: a free shipping threshold set just above the current basket median, and add-ons offered directly in the cart. We also watch the other side: AOV growth driven by discounts on large purchases can genuinely lower margin, so it is always evaluated together with margin, never alone.<\/p>\n

Common mistakes<\/h2>\n