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A Guide to Calculating Shopify Average Order Value (AOV)

By Shalini Vijayakumar

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On November 19, 2024

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In this blog

The average order value for e-commerce globally is just $130. And we’re pretty sure this number isn’t going to cut it. You’d want the most out of your Shopify store, marketing efforts, resources, and campaigns. 

Frequently Asked Questions (FAQs)

Yes, understanding your Shopify average order value allows you to fine-tune your ad campaigns. By targeting high-value customers with tailored offers, you can increase conversion rates and ROAS. Additionally, AOV helps you determine the ideal budget for customer acquisition, ensuring you’re not overspending on low-value customers.
You should calculate AOV regularly for your Shopify store, ideally on a monthly or quarterly basis. This helps you track the impact of promotions, seasonal sales, and changes in pricing. By frequently monitoring AOV, you can make timely adjustments to your marketing and sales strategies.
Yes, you can and should compare AOV across sales channels like Shopify, brick-and-mortar stores, or marketplaces. However, ensure you account for differences like shipping costs and product discounts that may vary between channels to get an accurate comparison.
Customer segmentation can provide deeper insights into AOV. For instance, first-time buyers may have a lower AOV compared to returning customers. By segmenting your customer base, you can tailor marketing strategies to each group and focus on increasing the AOV for each segment individually.
Yes, offering free shipping can increase your Shopify average order value if you set a minimum order threshold. Customers are more likely to add extra items to their cart to qualify for free shipping, boosting your overall AOV without sacrificing profitability.
Subscription models tend to increase AOV over time since customers commit to recurring purchases. You can calculate AOV for subscriptions separately to see how they contribute to your overall revenue and help grow long-term customer value.
avatar image Shalini Vijayakumar

Seasoned content marketer, creating impactful content in a wide range of topics relating to Digital marketing, SEO, Food and Cosmetics industry and lately into SaaS technology. Optimizing brands amplify their online presence through strategic storytelling and technical precision. Additionally, has interest into drawing and occasionally poses as a motivational speaker.

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