What is AOV (Average Order Value)?

How to Calculate AOV

The formula is simple:

AOV = Total Revenue ÷ Number of Orders

For example, if your store made $100,000 from 2,000 orders last month, your AOV is $50.

Why AOV Matters

AOV is critical because increasing it directly increases revenue without needing more traffic:

• Higher revenue from same traffic: A 20% AOV increase = 20% more revenue
• Lower relative CAC: Customer acquisition cost stays the same, but value increases
• Better profitability: Fixed costs spread over larger orders
• Scaling indicator: High AOV brands can afford higher ad costs

AOV Benchmarks by Industry

AOV varies significantly by industry. Here are typical ranges:

• Overall e-commerce: $50-100
• Skincare & Beauty: $65-85
• Supplements: $55-75
• Fashion & Apparel: $80-120
• Jewelry: $100-200
• Home Goods: $75-150

How to Increase AOV

There are several proven strategies to boost Average Order Value:

• Product recommendation quizzes: Guide customers to bundles and complete solutions rather than single products
• Personalized upsells: Use zero-party data from quizzes to show relevant add-ons
• Free shipping thresholds: Set the threshold 20-30% above current AOV
• Bundle deals: "Complete the routine" or "Stack and save" offers
• Post-purchase cross-sells: Recommend complementary products via email
• Volume discounts: "Buy 2, Get 1 Free" or tiered pricing

How Quiz Funnels Increase AOV

Quiz funnels are particularly effective at increasing AOV because they:

• Recommend complete solutions: Instead of a single moisturizer, recommend the full routine
• Build purchase confidence: When customers trust the recommendation, they buy more
• Enable personalized bundles: "Based on your answers, here's your perfect starter kit"
• Reduce returns: Right products = fewer returns = higher net AOV

Industry data shows quiz takers have 20-50% higher AOV than regular site browsers.