Average order value (AOV) is the average amount a customer spends per order. To work it out, divide your total revenue by the number of orders in the same period.
Shopify defines AOV as the average amount spent by customers per transaction, and the formula is the same whatever you sell. All you need are two numbers for one period: total revenue and the number of orders.
The AOV formula
AOV = total revenue / number of orders
Use the same period for both numbers. A month of revenue divided by a month of orders gives you a monthly AOV, and you can compare it with the next month like for like.
How to calculate average order value in five steps
- Pick the period and take total revenue for it.
- Count the orders in that same period.
- Divide revenue by orders. That's your AOV.
- Also find the median and the mode of your order values.
- Test one upsell or bundle aimed at your most common order size.
Steps four and five are the ones most guides leave out, and they're where the useful insight sits.
What's a good AOV? Shopify's benchmark
Shopify puts the global AOV at approximately $145 across all industries (Shopify's figure, as of October 2026). It also says benchmarks vary widely by vertical, so compare yourself with similar businesses, not with that headline figure.
| Measure | Definition | Shopify's figure |
|---|---|---|
| Mean (AOV) | Total revenue / orders | $24 in Shopify's demo store |
| Mode | The most common order size | $15 in the same store |
| Global benchmark | Across all industries | About $145, varying widely by vertical |
The catch: the mean hides your typical order
AOV is a mean, and a mean is easy to drag around. Shopify quotes Taylor Holiday of Common Thread Collective, who says that among the measures of central tendency (mean, median and mode), no single one is best, but using only one is the worst. Shopify recommends looking at all three.
Its demo store example shows why. The mean order value is $24, but the mode, the most common order, is $15. A few high-value orders pull the average up and hide the fact that most customers spend much less.
Shopify's advice is to focus on the modal order first. If your most common order is $15, think about which upsells or bundles would get those customers to add a little more, because small gains on most of your orders often beat chasing the occasional big one.
A higher AOV isn't always more profit
Shopify is clear that a higher AOV doesn't always mean higher profits. Merchants often use thresholds such as free shipping on orders over $25 to nudge customers to spend more, but whatever you give away to get the bigger basket comes off your margin. Check the margin on the extra spend before you call it a win.
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AOV also doesn't sit on its own. Shopify points to the checkout experience, citing an average cart abandonment rate of 70%, and to personalisation, citing research that companies using highly personalised interactions outperform others by 30% in conversion and revenue. If the checkout is where orders die, this guide on how to boost your site's conversion rate is the place to start.
How to increase average order value
Shopify's ways to raise AOV are upselling, cross-selling and incentives for larger purchases. It says simple tweaks, such as smarter shipping thresholds or suggesting the right add-ons, nudge customers to spend more without adding friction. Aim each one at your modal order, not at your average. To see how AOV fits with the other numbers worth tracking, this list of ecommerce KPIs puts it in context.
Where I come in
I help SaaS marketing teams and small ecommerce businesses choose what to measure and what to act on first, so a number like AOV leads to a test you can run next week rather than a line on a report. You can see how I work on my work with me page.
The verdict on AOV
Don't celebrate a rising AOV until you've checked the margin and the mode. Work out the mean, median and mode side by side, find your most common order and build one upsell or bundle for that customer. That's where the steady gains are.
Frequently asked questions
How do you calculate AOV?
Divide total revenue by the number of orders in the same period. Shopify says those are the only two numbers you need.
What is a good average order value?
Shopify puts the global AOV at approximately $145 across all industries, but says benchmarks vary widely by vertical, so compare yourself with similar businesses.
Why can AOV be misleading?
AOV is a mean, so a few large orders can pull it up. In Shopify's demo store the mean order is $24 but the most common order is $15.
Does a higher AOV mean higher profit?
Not always. Shopify says a higher AOV doesn't always equal higher profits, so check your margin on the extra spend.
