What is average order value (AOV)?

Average order value (AOV) is the average amount of money customers spend in a single order during a specific period. It is an important eCommerce metric used to understand purchasing behavior and measure revenue performance.

The basic formula is:

AOV = Total Revenue ÷ Number of Orders

For example, if a B2B eCommerce store generates ₹10,00,000 from 200 orders, its AOV is ₹5,000 per order.

Businesses use AOV to:

• Measure the typical value of each transaction.
• Identify changes in customer purchasing behavior.
• Evaluate the impact of upselling and cross-selling.
• Set free-shipping or minimum-order thresholds.
• Compare AOV across products, customer segments, channels, or regions.
• Improve revenue without necessarily increasing the number of customers.

In B2B eCommerce, AOV can be particularly useful because business customers may place larger and more frequent bulk orders. Businesses can analyze AOV alongside metrics such as customer lifetime value (CLV), customer acquisition cost (CAC), conversion rate, and repeat purchase rate to understand overall commercial performance.