Understanding and Increasing Average Order Value

Average Order Value (AOV) = Total Revenue ÷ Number of Orders. Increasing AOV grows revenue without increasing order volume or acquisition spend.

Example: 1,000 orders at £45 AOV = £45,000 revenue. The same 1,000 orders at £55 AOV = £55,000 revenue — a 22% revenue increase with no additional marketing spend.

AOV improvements are particularly powerful when combined with conversion rate optimisation — more orders at higher values multiplies the impact of both improvements.

View your AOV in Finance → Revenue Overview → Average Order Value in AskBiz.

Overall AOV masks important variation. AskBiz breaks AOV down by:

• Channel: Amazon AOV is typically lower than Shopify direct (marketplace customers are more price-sensitive)
• Traffic source: email customers typically have the highest AOV; paid social the lowest
• Product category: understanding which categories drive higher basket values guides cross-sell strategy
• Customer type: returning customers typically have 20–30% higher AOV than first-time buyers
• Time of day/week: some businesses see higher AOV in evenings — when customers have more time to browse

Go to Finance → Revenue → AOV Analysis to see these breakdowns.

1. Free shipping threshold: Set a free shipping threshold above your current AOV (typically AOV + 20–30%). 'Spend £X more to get free shipping' banners convert at high rates. If current AOV is £45, set the threshold at £55–£60. AskBiz helps you model the margin impact of different threshold levels.

2. Product bundles: Bundle a best-seller with a complementary product at a modest discount. The bundle AOV is higher than individual item AOV, and bundles reduce customer decision friction.

3. Upsell at checkout: Show a 'Customers also bought' or 'Complete the look' section at checkout. One-click upsells (add to order without re-entering payment details) convert at 15–25%.

4. Tiered discounts: 'Spend £75, save 10%; spend £100, save 15%' creates clear incentives to increase basket size.

5. Gift wrapping/personalisation options: Add-on services with high perceived value and very low cost increase AOV by £3–£8 per order on average.

After implementing any of the above tactics, track AOV weekly to measure impact. In AskBiz:

1. Go to Finance → Revenue → AOV Trend

2. Add an annotation for the date you launched each change

3. Compare AOV in the 4 weeks before vs 4 weeks after the change

Beware of seasonality — a promotion or sale can temporarily depress AOV (more orders at discounted prices). Measure AOV on full-price orders separately using the Non-Promotional filter.