How to use it
- Enter the revenue and the number of orders for a period.
- Optionally add items sold, visitors and a target AOV.
- Read the AOV and the other metrics.
Formulas
- AOV = revenue ÷ orders
- Items per order = items ÷ orders; average item price = revenue ÷ items
- Conversion rate = orders ÷ visitors × 100
- Revenue per visitor = revenue ÷ visitors = AOV × conversion rate
- Revenue at target = target AOV × orders
Worked example
A month with 25,000 revenue, 500 orders, 1,200 items and 20,000 visitors:
- AOV = 25,000 ÷ 500 = 50.00.
- Items per order = 1,200 ÷ 500 = 2.4; average item price = 25,000 ÷ 1,200 = 20.83.
- Conversion rate = 500 ÷ 20,000 = 2.5 %; revenue per visitor 1.25.
- At a target AOV of 55 the same 500 orders bring 27,500.00, which is 2,500.00 more.
Tips
- Track the median order too: a few large orders can pull the average up.
- Look at AOV by channel and by new versus returning customers; the overall number hides big differences.
- Raising AOV while conversion falls can leave revenue per visitor unchanged; watch both.