AOV after a shipping threshold
A bar chart showing average order value rising after a free-shipping threshold is introduced, while order count holds roughly steady.
How AOV is calculated
AOV = total revenue / total orders
You need a measurement window, typically 30 days, 90 days, or trailing 12 months. AOV varies by season, traffic source, and promotion calendar, so segment by those when the difference matters.
Levers that move AOV
Common ways stores raise AOV:
- Free-shipping threshold. Set just above the typical cart so shoppers add one more item to qualify.
- Bundles and kits. Group related products at a small saving versus buying them separately.
- Post-purchase upsell. Offer a relevant add-on right after checkout, when the buying decision is already made.
- Volume or tiered pricing. Reward larger quantities with a better per-unit price.
What hurts AOV
A few common patterns work against it:
- Aggressive discounting on cart-recovery. It can lift conversion but lowers AOV by 8-12% on average, because visitors learn to wait for discounts on later visits. The net revenue impact varies.
- Bundling at the wrong threshold. Forced bundles push price-sensitive buyers below their target spend; AOV ticks up but volume drops.
- Over-charging shipping on low-value orders. Low-cart visitors bounce, so the remaining orders skew higher in AOV but volume falls.
Distinct from related metrics
- Customer lifetime value (LTV). Revenue per customer across all their orders. AOV is per order; LTV is per customer, and the two connect through repeat-purchase rate.
- Conversion rate (CVR). The share of sessions that become orders. AOV is dollars per order; CVR is orders per session.
- Revenue per session (RPS). CVR × AOV. Sometimes preferred as a single composite because it captures both legs at once.
Related terms
- Conversion rate — an adjacent leg of the revenue identity
- Customer lifetime value — the per-customer companion
- Cart abandonment rate — an adjacent loss metric
See also
- The CRO playbook — where AOV fits
- Multi-step form vs one-page checkout — checkout implications for AOV
- How to design the post-purchase experience — a post-purchase AOV lever
Last updated May 31, 2026.