AOV (Average Order Value) is calculated as: total revenue / total number of orders. It is an essential eCommerce metric that directly impacts profitability. Increasing AOV through upselling, cross-selling, and free-shipping thresholds is often more efficient than acquiring new customers.
Your store has an AOV of EUR 36. You set a free-shipping threshold at EUR 50 and add complementary product recommendations. AOV rises to EUR 47 (+30%), generating EUR 11 extra per order at no additional acquisition cost.