Average Order Value (AOV)
Average Order Value (AOV) is the average amount a customer spends per order, calculated as total revenue divided by the number of orders. Raising AOV increases revenue without needing more traffic.
Average Order Value is one of the few growth levers that doesn’t require more traffic. Lift how much each customer spends per order and every other metric — revenue, LTV, ad payback — improves with it.
The AOV formula
AOV is simple to calculate over any period:
- AOV = Total revenue ÷ Number of orders
- Example: $50,000 in revenue across 1,000 orders is an AOV of $50.
Why AOV matters for subscriptions
Higher AOV means each acquired customer is worth more, which improves your LTV and lets you outbid competitors on ads. Subscriptions compound the effect: a subscriber with a higher first-order AOV generates that value repeatedly, every billing cycle.
How to increase AOV on Shopify
The most effective AOV tactics for subscription stores:
- Bundles and Build-a-Box — group products so customers add more per order.
- Subscription upsells and order bumps at checkout and in the customer portal.
- Tiered discounts that reward larger or higher-frequency subscriptions.
- Free-shipping thresholds set just above your current AOV.
Frequently asked questions
How do you calculate average order value?
Divide total revenue by the total number of orders over the same period. For example, $80,000 in sales across 1,600 orders gives an AOV of $50.
What is a good average order value?
There is no universal number — AOV varies widely by product category and price point. Focus on growing your own AOV over time rather than comparing to unrelated stores; bundles, upsells, and subscriptions are the most reliable levers.
How do subscriptions affect AOV?
Subscriptions raise customer lifetime value by repeating each order, and subscription-specific tactics like Build-a-Box, bundles, and tiered discounts increase the value of each individual order as well.
Launch Shopify subscriptions without RecurX transaction fees
Start free on Shopify, or book a migration audit before changing subscription apps.