AOV is total revenue divided by number of orders over a given period. It's a foundational ecommerce metric because it determines how much room there is to spend on acquisition profitably: a $150 AOV store can sustain a higher CPA than a $35 AOV store even at the same margin percentage.
Creative and offer strategy directly move AOV — bundles, upsells, and free-shipping thresholds are common levers. Media buyers track AOV by campaign because broad, colder audiences often convert at a lower AOV than retargeting audiences buying with more intent.
Example$45,000 in revenue across 300 orders gives an AOV of $150.
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