To increase average order value (AOV), sell bundles, set a free-delivery threshold just above your current average, and show related products in the cart. These need no extra traffic, so they are the cheapest revenue growth. At Tassels Clothing, higher order value drove about 46% of a 248% sales increase.
What is average order value?
Average order value (AOV) is total sales divided by the number of orders. If a store makes PKR 2,277,275 from 447 orders, its AOV is about PKR 5,095.
Revenue equals orders multiplied by AOV. That means you can grow revenue by getting more orders, by making each order bigger, or both.
Why does AOV matter so much?
Raising AOV needs no extra traffic and no extra ad spend, so it is usually the cheapest source of growth. Every ad click, every acquired customer and every delivery returns more revenue.
Take Sanimax as an example: with 447 orders and an AOV near PKR 5,095, a 10% higher AOV adds about PKR 228,000 at the same order count.
What did higher order value do for Tassels Clothing?
Tassels Clothing closed the period at PKR 42.1M in sales from 2,189 orders, up 248% on the previous period, while orders rose 95%. Revenue grew much faster than orders because AOV climbed from roughly PKR 10,800 to PKR 19,200.
Splitting the growth between the two factors, about 54% came from more orders and about 46% from bigger orders.
Which tactics raise AOV?
- Bundles: group products that go together at a small saving
- Free-delivery threshold: set it slightly above your current AOV so customers add one more item
- Related products on product and cart pages
- Add-ons and upsells at checkout
- Offers that reward a bigger basket, such as a gift above a set amount
How do you test AOV changes safely?
Set a baseline for orders per day and AOV first. Change one thing at a time, run it for a full week or more, and compare against the baseline. Watch conversion rate too, because an offer that raises AOV but lowers orders can cancel itself out.
Frequently asked questions
What is a good average order value?
There is no single number. A good AOV is high enough that, after product cost and delivery, each order is profitable at your cost per order. Compare your own AOV over time rather than other stores.
Do bundles lower profit?
They can if the discount is too deep. Price bundles so that margin per order goes up, even if margin per item goes down slightly.
Is AOV or order count more important?
Both multiply together. When traffic is expensive, AOV is usually the cheaper lever, which is why it is worth fixing first.