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Decoding the Jargon

AOV

Average Order Value

Performance marketingTerm

The average amount a customer spends in one order.

Formula

AOV = total sales ÷ number of orders

Example

Meera's ads bring ₹4,00,000 of sales from 200 orders, so her AOV is ₹4,00,000 ÷ 200 = ₹2,000. If a 'complete the look' suggestion gets the average up to ₹2,200, the same 200 orders would bring ₹4,40,000.

How you'll hear it

“AOV is ₹2,000, so a ₹500 CPA still leaves a decent margin.”

Don't confuse it with

  • LTV: all orders across a customer's life, not one order.
  • Average selling price: price per item, not per order.

Related terms

LTVCPAROASConversion rate

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Sources

  1. Average Order Value: Formula and 7 Ways, Shopify, 2026

Checked 1 October 2026. Examples use a fictional business; figures are illustrative.

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