Average order value (AOV) = revenue from orders / number of orders. Shopify defines it as (gross sales minus discounts) / orders, measured over the period you select. If your store took 200 orders worth $9,000 after discounts last month, your AOV is $45. Raising it works on the traffic you already have: every order you already get becomes worth more.
How Shopify calculates it
In Shopify's analytics, the definition is "(gross sales - discounts) / orders." Gross sales are the product prices times quantities, so shipping and taxes are not part of it. Discounts are subtracted, and post-order adjustments such as later edits, exchanges and returns are left out. In Shopify Analytics it appears as "Average order value" on the overview dashboard and in sales reports.
If you compare AOV across tools, check what each one counts. Some include shipping and tax, and some subtract returns, so the same store can show different numbers in different places.
A worked example
| Month | |
|---|---|
| Gross sales | $10,000 |
| Discounts | -$1,000 |
| Orders | 200 |
| AOV | $45.00 |
Now suppose one in five orders adds a $15 accessory. That is 40 orders x $15 = $600 more in sales, and AOV becomes $9,600 / 200 = $48.00. Same traffic, same conversion rate, 6.7% more revenue.
Why AOV matters more than it looks
Your costs per order (fulfillment, payment fees, the ad that brought the shopper) are partly fixed. When the order gets bigger, those fixed costs are spread over more revenue, so profit per order rises as long as the added items carry a positive margin. That is why a store paying for traffic should look at AOV before it raises the ad budget.
Six product page levers
1. A natural add-on next to the button
One accessory that the shopper is likely to need anyway: a case with the phone, a refill with the bottle, a gift box with the gift. One relevant suggestion near the button works better than a carousel of eight unrelated products at the bottom.
2. Bundles at a visible saving
"Set of 2, save $5" next to the single item. The bundle should be something people actually buy in multiples, like socks, candles or mugs for a household, not a forced combination.
3. A free shipping threshold set just above your AOV
If your AOV is $45 and you offer free shipping from $55, a shopper at $45 has a reason to add a $10 to $15 item. Set the threshold too far above your AOV and few people try to reach it; set it below and you give shipping away on orders that would have happened anyway. Show the threshold on the product page, not only in the cart.
4. Quantity options where it is natural
Consumables (coffee, supplements, refills) can offer two or three packs with a per-unit price shown, so the saving is easy to see.
5. A better version, shown honestly
If you sell a standard and a premium version, show both side by side with the difference in one line. Shoppers who wanted more are glad to see it; shoppers who did not still buy the standard one.
6. Clear answers that remove the "just one to try" instinct
Many shoppers buy one item as a test because they are unsure about size, quality or delivery. A size guide, real photos and a visible return policy reduce that uncertainty, and with it the reason to buy only one.
What not to do
- Fake discounts. A "was" price that never existed misleads shoppers, and in the US the FTC's Guides Against Deceptive Pricing cover former price comparisons.
- Pre-checked add-ons. Adding an item or insurance to the cart without the shopper choosing it invites refunds and complaints, and shoppers who notice it trust the store less.
- Upsells before the main decision. A pop-up offering a bundle before the shopper has decided on the product interrupts the decision you need first.
To see whether shoppers are adding to cart at all before you work on AOV, read add to cart rate. The page itself is covered in product page design and the product page checklist.
Before changing prices or bundles, it helps to know what is stopping shoppers in the first place. PageJury's 50 AI shopper personas report what each one hesitated over, from price to shipping; the sample report shows the format.
FAQ
What is the formula for average order value?
AOV = revenue from orders / number of orders. In Shopify: (gross sales minus discounts) / orders.
Does AOV include shipping?
Not in Shopify's definition, which uses gross sales minus discounts. Other tools may include shipping and taxes, so check the definition before comparing numbers.
What is a quick way to raise AOV?
Two levers to test first are a relevant add-on next to the button and a free shipping threshold set a little above your current AOV. Both work on the traffic you already have; measure the effect in your own store.
Is a higher AOV always better?
Not if it costs conversions. A threshold or bundle that makes fewer people buy can raise AOV while lowering total revenue, so watch revenue and conversion rate together.
Sources
- Shopify Help Center, "Analytics fields" (definition of average order value) and "Sales reports" (gross sales and post-order adjustments).
- Federal Trade Commission, Guides Against Deceptive Pricing (16 CFR Part 233).
- The worked example uses invented numbers for illustration.