---
title: "What is Average Order Value?"
url: https://fibr.ai/glossary/average-order-value
description: "Average order value (AOV) measures the average amount customers spend per transaction, calculated as total revenue divided by total orders."
last_updated: 2026-05-05T11:55:56.849581+00:00
---
Average order value is the average revenue generated from a single purchase, calculated by dividing total revenue by the number of orders. It is a key e-commerce metric because it shows how much customers typically spend.

Businesses often try to increase AOV through techniques like product bundling, cross-selling, or free shipping thresholds. Tracking this number helps identify whether pricing, promotions, or customer behavior are moving in the right direction.

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