--- title: What is Average Order Value (AOV)? | Jirav description: AOV is the average amount that a customer spends on each order they place. It helps companies make decisions about marketing and advertising strategies. --- ![](https://www.jirav.com/hs-fs/hubfs/Imported%20sitepage%20images/header-logo.png?width=98&name=header-logo.png) - [ Resources ](https://www.jirav.com/resources) - Menu / Resources - [Resource Center ](https://www.jirav.com/resources) Blogs and resources on all things finance, FP&A, and Jirav [Webinars ](https://www.jirav.com/webinars) Learn more about Jirav and FP&A from industry experts [Events ](https://www.jirav.com/events) See our upcoming calendar of events [Help Center ](https://help.jirav.com/) Guide on how to use Jirav - [ Company ](https://www.jirav.com/company) - Menu / Company - [About ](https://www.jirav.com/company) Learn about Jirav’s story and meet our leadership team [News Coverage ](https://www.jirav.com/news) See the latest news and highlights [Press ](https://www.jirav.com/press-releases) Recent company announcements and updates [Careers ](https://www.jirav.com/careers) View current job openings and learn how to join the Jirav Tower ![business_env](https://www.jirav.com/hubfs/business_env.svg) [ For Businesses ](https://www.jirav.com/reporting-planning-purpose-built-for-businesses) ![accounting_calc](https://www.jirav.com/hubfs/accounting_calc.svg) [ For Accounting & CFO Firms ](https://www.jirav.com/reporting-planning-purpose-built-for-accounting-cfo-advisory-firms) [ Get a Demo ](https://www.jirav.com/request-demo) [ Sign in ](https://app.jirav.com/) ![](https://www.jirav.com/hubfs/April2021/images/banner-shap.png) BLOG # What is Average Order Value (AOV)? | Jirav [![](https://www.jirav.com/hubfs/April2021/images/fb-icon.png) ](http://www.facebook.com/share.php?u=https://www.jirav.com/ecommerce-metrics-library/average-order-value/) [![](https://www.jirav.com/hubfs/April2021/images/tw-icon.png) ](https://twitter.com/share?url=https://www.jirav.com/ecommerce-metrics-library/average-order-value/) [![](https://www.jirav.com/hubfs/April2021/images/in-icon.png) ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.jirav.com/ecommerce-metrics-library/average-order-value/&summary=&source=CeBIT) 1 minute read ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) ### What is AOV? AOV is the average amount that a customer spends on each order they place with a company. ### Why AOV Is Important AOV is an important metric for ecommerce companies, because it can provide insights into customer behavior and preferences. A high AOV generally indicates that customers are buying more items or higher-priced items, which can be an indicator of customer loyalty and satisfaction. A low AOV, on the other hand, may indicate that customers are only buying a few low-priced items, which can be a sign that there is room for improvement in the company's product offerings or pricing strategies. Additionally, AOV can help companies make decisions about marketing and advertising strategies. For example, if a company has a high AOV, they may want to invest more heavily in advertising to attract new customers, as the potential ROI may be higher. Conversely, if a company has a low AOV, they may want to focus on increasing the value of each order by offering discounts for larger purchases or promoting higher-priced items. ### How to Calculate AOV To calculate AOV, you simply need to divide the total revenue earned from all orders by the total number of orders: AOV = Gross Revenue / # Orders For example, let's say that a company earned $50,000 in revenue from 500 orders in a given month. To calculate the AOV for that month, you would divide $50,000 by 500, which gives an AOV of $100. ##### Jirav Published April 25, 2023 ###### Related topics - [Metrics library](https://www.jirav.com/ecommerce-metrics-library/tag/metrics-library) - [E-commerce metrics library](https://www.jirav.com/ecommerce-metrics-library/tag/e-commerce-metrics-library) ## Related blog posts ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### Marketing Efficiency Ratio: How to Calculate it | Jirav [ Read more ](https://www.jirav.com/ecommerce-metrics-library/marketing-efficiency-ratio) ![](https://www.jirav.com/hubfs/April2021/images/Resources-tile-pattern-giraffe@2x.png) Metrics library #### What is Paid Marketing Spend? Why is it Important? 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