What is Average Order Value?
If you've ever wondered how much money your customers are spending on every order you place with e-commerce businesses, you've come to the right place. Customers' average order value (AOV) is one of the most important metrics for online retailers, as it influences everything from advertising budgets, store layouts, and product pricing. To better understand their customers' buying habits, online retailers use this metric as a yardstick.
Up-selling (providing expensive items that are an aversion to the same product), Cross-selling (providing complementary products), free delivery with a minimum purchase, volume discounts, and coupons are all ways to increase AOV for your business.