An Average Order Value (AOV) Calculator is a tool that helps ecomerce businesses measure the average amount customers spend per transaction in a specific time period.
By dividing total revenue by the number of orders, the AOV Calculator provides insights into customer purchasing behavior, allowing businesses to optimize pricing, upsell strategies, and overall profitability.
How to Use the AOV Calculator?
Using the Average Order Value (AOV) Calculator is simple.
Just follow these steps:
Step 1. Enter Total Revenue
- Total Revenue is the overall sales amount your eCommerce store generated in a specific period (e.g., last month).
- Input the total sales figure into the “Total Revenue” field.
Step 2. Enter the Number of Orders
- This is the total number of transactions or completed orders during the same period.
- Enter the total number of orders into the “Number of Orders” field.
Step 3: Automatic Calculate your AOV
- The AOV calculator will instantly compute your Average Order Value using the formula:
AOV= Number of Orders/Total Revenue
This process helps you measure and monitor the AOV of your eCommerce store, allowing you to boost profitability and customer engagement.
We’ve already covered What is the eCommerce Average Order Value (AOV) in detail in our ecommerce glossary.