AKA:
Average Cart Size
What does it mean:
Used mainly in e-commerce businesses it’s the average size of all the orders for a given period. It’s an important metric because larger AOV means more ability to spend money to acquire users.
The Formula:
Total Revenue / Total Orders = AOV
Use it in a sentence:
To colleagues:
“Let’s try to increase AOV this month with a promotion for free shipping for 5 items or more.”
To investors:
“We increased our AOV by upselling users a bobblehead during checkout. Everyone loves bobbleheads.”
At a party:
“You don’t even want to know my AOV on Wish.com. I’m pretty sure it violates several international trade deals.”
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