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Metrics

Average Order Value (AOV)

Average Order Value is the average amount a customer spends per transaction. Lifting it is often the fastest, cheapest way to improve unit economics — no extra ad spend required.

What it means

AOV tells you how much revenue each order generates on average. Because it sits in the denominator-free part of your economics, raising it improves ROAS, payback, and margin all at once.

Worked example

A regional e-commerce brand does AED 600,000 of revenue across 4,000 orders in a month. AOV = 600,000 ÷ 4,000 = AED 150. Adding a free-shipping threshold at AED 200 and a one-click upsell lifts AOV to AED 180 — a 20% revenue gain with the same traffic.

Why it matters

If your AOV rises faster than your CAC, you can outbid competitors for the same customer. The classic levers: bundles, volume discounts, upsells/cross-sells, and free-shipping thresholds.

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