Average order value is revenue divided by the number of orders over the same reporting period.
A practical example
Revenue of 12,000 from 200 orders produces an average order value of 60 in the reporting currency.
What to watch for
Use a consistent treatment of refunds, tax and delivery charges. A higher average order does not necessarily mean a higher profit.
Related reading
Explore Return on Ad Spend (ROAS) and LTV or Lifetime Value. Try our break-even ROAS calculator for a practical next step. See how this fits into Paid advertising.