Average Order Value (AOV): Formula, Benchmarks and 7 Ways to Increase It (2025)

Traffic to your site is high. Conversion rates are good. But then you read the fine print: your order values—the amount customers buy at checkout—are consistently low.

Average order value (AOV) is a useful metric to monitor as you grow your business. Traditionally, it’s one of the first numbers business owners try to improve to increase revenue or optimize return on ad spend (the global AOV is approximately $145 across all industries). It sounds simple enough: If you can get people to spend more money per order, you’ll make more money, right?

Not necessarily. Like most important metrics, average order value has its limitations. Below, learn smarter ways to think about your AOV, and discover methods of increasing AOV that grow both revenue and profit.

What is average order value (AOV)?

Average order value (AOV) is a key metric that measures the average amount spent by customers per transaction. To calculate AOV, simply divide total revenue by the number of orders. 

You can increase AOV with strategies like upselling, cross-selling, and offering incentives for larger purchases, ultimately enhancing profitability for ecommerce businesses.

How to calculate average order value (AOV formula)

You can calculate average order value (AOV) by dividing your total revenue by the number of orders in the same time period:

AOV = Total Revenue ÷ Number of Orders

You can track this metric directly in your Shopify admin under Reports > Customers. Alongside AOV, you’ll also find other insights to help you understand your customers’ purchase behavior.

AOV calculation example

Let’s say your store generated $2,000 in revenue from 100 orders.

AOV = $2,000 ÷ 100 = $20

On average, each customer spends $20 per order.

Merchants often use this number to set revenue-boosting thresholds, like offering free shipping on orders over $25. While these tactics can nudge customers to spend more, remember: a higher AOV doesn’t always equal higher profits. That’s why it’s important to think strategically about which methods actually improve margins.

Using modal vs. mean for better insights

Taylor Holiday, co-founder of marketing agency Common Thread Collective, cautions merchants against relying on average order value alone to improve your profits.

“When it comes to measures of central tendency (mean, median, mode) there is a saying in statistics: No measure of central tendency is best, but using only one is certainly the worst.”

Looking only at the mean (average) can give you a distorted view of customer behavior. Instead, Taylor recommends considering all three measures:

• Mean: the average value of all orders (traditionally called AOV)
• Median: the middle value of all orders
• Mode: the most frequently occurring order value

Example: Kinda Hot Sauce

In Shopify’s demo store, Kinda Hot Sauce, the mean order value is $24. But the mode (the most common order size) is only $15. A handful of high-value purchases pull up the average, masking the reality that most customers spend much less.

Above is a histogram of order frequency, along with the mean, median, and mode calculated. Notice that the mean (or average) of $24 is substantially higher than the mode (most common dollar amount of orders) of $15. There are a few high dollar orders that skew up the average. 

That’s why Taylor advises focusing on modal orders first. If your most common order is $15, think about which upsells or bundles would encourage those customers to add just a bit more to their cart. Incremental gains on the majority of orders often have more impact than chasing occasional big spenders.

AOV is a useful metric, but not a complete one. Like counting calories, the quality and distribution matter as much as the raw total. Looking at your modal order values provides a clearer starting point for strategies that drive sustainable revenue growth.

Average order value benchmarks by industry

How do you know if your AOV is strong or if you’re leaving money on the table? Benchmarks can give you helpful context, though it’s important to remember that numbers vary widely across verticals.

The global average AOV across industries sits around $145. But industry breakdowns tell a more nuanced story:

• Luxury and jewelry see the highest AOV, often above $300 per order.
• Apparel and accessories typically fall in the $40 to $170 range.
• Beauty and personal care average closer to $15 to $90.

These benchmarks matter because they help you compare your business to similar ones on equal terms. A beauty brand and a luxury retailer will naturally have very different “healthy” order sizes.

Benchmarks alone don’t tell the full story. Other factors shape how much customers spend:

• Checkout experience: With an average cart abandonment rate of 70%, friction at checkout can undermine even strong order values.
• Personalization: Recent research shows companies using highly personalized interactions outperform others by 30% in conversion and revenue. Personalized product recommendations and bundles can significantly increase AOV.

Use benchmarks as a starting point, then look closely at your customer journey. Improving checkout flow and tailoring the shopping experience often has as much impact on AOV as the products you sell.

7 ways to increase average order value

1. Create order minimums for free shipping and gifts
2. Bundle products or create packages
3. Upsell or cross-sell complementary products
4. Set up a customer loyalty program
5. Provide live chat support for quick questions
6. Use AI-powered product recommendations
7. Implement post-purchase upsells

Raising your average order value doesn’t require big changes. Simple tweaks, like setting smarter shipping thresholds or suggesting the right add-ons, can nudge customers to spend more without adding friction. 

Here are seven practical ways to do it:

1. Create order minimums for free shipping and gifts

Customer expectations around shipping costs are a major consideration when it comes to increasing average order value, as many customers would rather spend more and get free shipping than pay for it. Free shipping is a commonplace but still highly effective way to nudge customers to spend more. And it’s easy to set up with Shopify.

To calculate your threshold, start with modal order value, or the most common order values. For instance, if most of your orders are in the $35 range, you might offer free shipping to orders over $50. 

Digital marketing consultant Aaron Zakowski suggests setting your threshold at 30% higher than your AOV (but again, consider using your modal order value here). “The goal is to make free shipping feel attainable to the greatest number of customers, thereby increasing your overall revenues. Setting the threshold too high risks abandoned carts,” he says.

“Returning to the Kinda Hot Sauce example, if it had set its free shipping threshold at $35, based on its AOV of $24, the vast majority of customers spending $15 would probably abandon their carts. If your goal is to weed out lower-paying customers, then this is a great strategy—but I’m guessing it’s not,” Aaron adds. 

A variation of free shipping is setting discounts for orders over a certain threshold, or volume discounts. For example, you might offer a $10 coupon for orders above $50. You could also offer a 10% discount for orders above $50, but this makes profits more unpredictable.

Kopari Beauty offers free gifts with a minimum purchase order and promotes this through its in-cart messaging:

TIP: Consider using a promotion bar on your website to make it obvious that you’re offering a minimum order incentive.

2. Bundle products or create packages

Encourage customers to purchase more items by offering product bundles that cost less than if the same items were purchased individually.

By bundling products, you’re increasing the perceived value of a customer’s purchase. One great approach to product bundling is offering a package of products that create an all-in-one solution for the desired experience.

For example, BioLite bundles together a stove and accessories—the basic essentials to cook a meal while camping. For the customer, this makes it easier to get everything they need in one shot, while also eliminating the need to conduct further research. For you, that means a higher order value from selling multiple products instead of just one.

You can also let your customers create their own bundles by allowing them to choose which features or add-ons they want in their order.

3. Upsell or cross-sell complementary products

Upselling and cross-selling are at least as old as the McDonald’s refrain, “Would you like fries with that?” Like bundling, upselling and cross-selling are all about nudging customers to buy complementary or upgraded versions of the products they already intend to purchase. 

Like any tactic, it can experience diminishing returns with overuse. Preetam Nath of DelightChat shares ways to evolve your upselling strategy, based on advising hundreds of online stores: 

“Don’t upsell too much: recommend like a friend would. Nobody wants to feel like they are being sold to. Your upsell needs to appear helpful and genuine, like how a friend might suggest a product,” he says. 

“Instead of simply suggesting other popular items from your store, hand-pick products that pair perfectly with the item in the user’s cart, such as accessories or add-ons. For example, a mouse for a laptop or batteries for a remote control.”

Offer low-value upsells to increase the likelihood of purchase. If someone is out to purchase $50 to $100 worth of goods, it’s hard to convince them to purchase another $100, but easy to convince them to add a $20 product that complements their purchase.

Check out the Shopify App Store to find the right product recommendation app for your store. Here are a few options:

• Zipify One Click Upsell: Built for Plus customers, this app boosts average order value with one-click upsell offers.
• Candy Rack: Build post-purchase upsell funnels with one-click purchases.
• CartHook Upsells: Add native one-click promotions including upsells and free gifts to your Shopify store.
• Ultimate Special Offers: Create one-click offer upsells directly in your store checkout. 

4. Set up a customer loyalty program

If your store sells consumable products, like razors or shaving cream, consider setting up a rewards or loyalty program to encourage repeat purchases. Creating a customer loyalty program is a retention strategy that helps you forge relationships with your customers and increase customer lifetime value—but it also encourages customers to spend more to get perks, increasing AOV.

OSEA Malibu, a clean-beauty brand built on Shopify, knows that loyalty is key to increasing lifetime value. For example, OSEA’s Sea Rewards Program offers tiered perks, such as free shipping, early access to new launches, or small gifts with purchase, for repeat customers, recognizing that “every dollar counts” in building lifetime loyalty instead of one-time spend. 

It’s important to make sure your loyalty programs evolve with consumer preferences. During times of global instability or economic recession, for instance, it may not make sense to reward buyers with unnecessarily lavish gifts for spending a lot.

When there’s an incentive for your customers to earn points under your loyalty program, you can expect to see your average order value increase significantly. 

5. Provide live chat support for quick questions

Live chat usually conjures images of headset-clad support agents sitting in an office, triaging problems. But when used correctly, it can encourage customers to spend more and increase their order value. 

“Being available through live chat helps customers get their immediate questions answered, which means greater potential for a sale and fewer abandoned items,” says Jaime Schmidt, founder of Schmidt’s Naturals and author of Supermaker: Crafting Business on Your Own Terms. Schmidt calls live chat an “underutilized weapon” for increasing AOV.

Live chat helps your highest-intent buyers complete purchases. You’ll be chatting with visitors who intentionally came to your site to browse or buy, but who might need specific questions answered to gain the confidence to hit the Buy button.

Live chat is especially useful for high-ticket items, like mattresses and furniture, which may require more handholding to reach the checkout line. Online businesses ask a lot of buyers: to find and pay for products, usually sight unseen. Online product reviews, testimonials, and other social proof can also help, but live chat can close the deal when it counts the most. 

Being available through live chat helps customers get their immediate questions answered, which means greater potential for a sale and fewer abandoned items.

What’s more, if you provide a way for your buyers to instantly connect with you, you’re not only helping sell once, but you’re fostering a conversation that can encourage repeat sales. 

6. Use AI-powered product recommendations

Personalization is one of the fastest ways to grow your average order value. Plus, AI makes it easier than ever. Instead of showing every shopper the same products, AI-powered tools analyze browsing behavior, past purchases, and even what’s in a customer’s cart to recommend the items they’re most likely to add.

The payoff is real. Retailers that redirect budget from blanket discounts to personalized promotions earn returns up to three times higher than mass promotions. 

On Shopify, you can add personalization at scale using tools like:

• Shopify Search & Discovery lets you create custom product recommendations on product detail pages and in search results.
• Rebuy is an AI-driven personalization engine that powers upsells and dynamic bundles across your storefront.
• Gorgias Shopping Assistant is an AI-powered chat that surfaces tailored product suggestions while answering customer questions.

7. Implement post-purchase upsells

Bundling products before checkout can feel risky if you’re worried about slowing down conversions. A smarter, low-risk way to test is by using post-purchase upsells. These appear immediately after a customer completes their order, so there’s no risk of disrupting the initial conversion.

Apps like ReConvert make it easy to set up these offers. For example, if someone buys a skin care product, you might present them with a matching serum or travel-size version right after checkout. The customer already said “yes” once, and these tailored follow-ups can increase cart value without friction.

Over time, post-purchase data also tells you which products customers naturally buy together. With those insights, you can build pre-purchase bundles or recommendation blocks that are more likely to convert, since you know the combinations are already proven.

For example, Doe Lashes uses post-purchase upsells to suggest lash accessories, such as applicators or cleansers, after checkout. Because the offers are highly relevant, customers often add them on impulse, helping Doe Lashes grow AOV without interrupting the buying journey.

Tracking and optimizing your AOV

Average order value is a useful metric on its own, but it becomes even more powerful when viewed in the context of your broader performance data.

 Instead of tracking it in isolation, use AOV alongside metrics like:

• Customer acquisition cost (CAC)
• Customer lifetime value (CLV)
• Conversion rate

That way, you can see whether an uptick in order size also improves profitability.

In Shopify, you can monitor AOV directly in your Analytics dashboard or through custom reports. Many merchants also connect tools like Google Analytics 4 or apps such as Lifetimely for deeper insights into how order values trend over time.

To make AOV improvements actionable:

• Track your ecommerce AOV over consistent time periods (e.g., month over month or quarter over quarter) to spot real progress
• Set realistic goals like increasing AOV by 5% to 10% over the next quarter
• Run tests before scaling—trial changes like free shipping thresholds, bundles, or post-purchase upsells, and use data to validate whether they lift AOV and profit margins

By continually monitoring and testing, you’ll move beyond “chasing bigger carts” toward building a healthier revenue model, one where each order not only grows in size but also contributes sustainably to your bottom line.

Start increasing your average order value today

The beauty of focusing on average order value is that you’re concentrating on visitors who already want to buy. They’ve come to your site with high intent; they may even have items in their carts. All you have to do is help them discover and buy more items that are relevant to them. 

When you focus on engaging and activating those who are already spending with you, you have fewer barriers to overcome. Instead of spinning your wheels on the customer acquisition treadmill, it’s about creating a greater exchange of value. The customers who spend more, get more.