FLUF / THE SELLER REFERENCE
Average order value: AOV formula, example and limitations
The average sales amount per order, calculated using a clearly defined revenue total divided by the number of orders in the same period.
The AOV formula
Average order value = defined sales revenue ÷ number of orders for the same population and period. The word ‘defined’ matters: reporting systems can treat discounts, returns, tax and shipping differently. Use the report’s documented basis when comparing results.
Worked example
A seller records twenty completed orders with £600 in product revenue on the chosen basis. AOV is £600 ÷ 20 = £30. If those orders contain thirty units, average selling price per unit is £20. AOV answers how much an order is worth, while average selling price answers how much a unit sells for.
How bundles affect AOV
Combining two products into one purchase can raise order value while leaving the price per unit unchanged or even lower. A discounted bundle may increase the basket size without improving profit. Check product costs, shipping and fees alongside the headline AOV.
Comparing channels or time periods
Compare like with like: the same currency, treatment of cancelled orders and revenue definition. A channel selling mostly bundles naturally differs from one selling individual low-price items. A few high-value orders can also move the average sharply, so inspect the distribution rather than assuming every buyer spent more.
What AOV cannot tell you
AOV does not measure conversion rate, customer satisfaction or net profit. It can rise while the number of orders falls. With no orders in the period, the metric is undefined rather than evidence that a typical order was worth zero. Pair it with order count, returns and margin before changing pricing or promotions.
Put it into practice
Use the related reporting guide or calculator. For selling across marketplaces, see FLUF Connect crosslisting and current plans and pricing.
Related terms
Reference
Primary reference: Shopify. The examples on this page are illustrative, not customer results or universal benchmarks.
