Average Order Value (AOV)
The average order value (AOV) measures the average amount spent on your website each time a customer places an order. The metric is defined over a specific time period and is calculated by dividing the total revenue by the number of orders over that time interval. The AOV formula is therefore:
AOV = Sum of revenue generated on your website / Number of orders placed
For example, if your online store generated $1,000 in August and there were 23 orders placed, the average order value is $1,000/23 = $43.47.