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Average Order Value (AOV)

In eCommerce, Average Order Value (AOV) measures the amount that is spent every time a customer places an order on a website or app. AOV can help you understand whether customers tend to order more expensive or less expensive products, the amount of products they typically order, and how much each transaction costs in relation to the transaction itself.

Why average order value is important?

Increasing average order value is one of the most important metrics to track for any retailer. It’s how you can offset customer acquisition costs to reduce your payback period and increase ROI, which means you can accelerate your path to profitability or put more money into advertising and product development.

How to increase the average order value (AOV) for an online retail business?

There are a lot of ways to increase the average order value (AOV) of your online store! And to really move the needle, you have to implement these different ways all at the same time. See the full article for more details.

What is average basket value?

Average basket size refers to the number of items getting sold in a single purchase. It is the equivalent of total units sold ÷ number of invoices. Depending on the kind of business, average basket size can be a very important metric.

What is average transaction value?

Average transaction value is the average dollar amount that a consumer spends with you, within a single transaction. This will give you an average of how much each transaction was worth during that period. Generally, the higher the ATV is, the more income your company generated on each customer who made a purchase.

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