When you are at a growing stage, it’s important to work on increasing you revenue without increasing your overall acquisition cost. At this point, your highest focus should in growing your Average Order Value (AOV). That’s exactly what this AOV calculator is for.
Simply input your total revenue and the total no. of orders (within the same time frame) to know your AOV, and then strategize how to increase the number.
What Is AOV And Why It Is Important To Track (And Optimize)?
Average Order Value (AOV) is the amount of revenue earned on average per every order. It’s a key lever for revenue growth for any online business, especially eCommerce.
AOV Formula:
AOV = Total Revenue Earned ÷ Total Number Of Orders
(In the same time period)
AOV Calculation Example
Suppose, in the last 30 days, you got about 100 orders and earned a total of $2000.
This means, you earned about $20 on average from every order.
Now, if you could increase this amount to $30, you would end up earning a total of $3000 (i.e. $1000 more) without needing to increase the no. of orders or customers.
Importance Of Tracking AOV
If you are a startup, then your obvious first priority should be acquisition, starting with traffic. However, if you are seeming some traction, i.e. regular amount of traffic and some orders, then it’s time to optimize your store to increase your revenue.
You could work on increasing traffic further, but as an eCommerce store owner, the best option is rather to increase average order value (which is why you need this AOV calculator).
The idea is, if you have enough funding, you could easily invest in increasing acquisition. But, as a growing store, it’s better to get as much as those funding from your existing prospects. So instead of trying to increase the number of traffic, you focus on making your current traffic spend more on every order.
And as you saw in the example above, if you can successfully make people spend even a little bit more, your overall revenue is increase by a large amount.
That is why, for medium eCommerce businesses, AOV is a crucial revenue growth lever.
Who Should Use This AOV Calculator?
- eCommerce store owners
- eCommerce marketing executives
- Marketing agencies
Start optimizing your customer acquisition strategy today — scroll down and use the calculator now!
Calculating AOV is the first step. Understanding how it affects profit and scaling is the next one.
If you want to go deeper into why eCommerce AOV matters, how it affects profitability, and how it fits into your WooCommerce store’s growth strategy, we’ve broken that down in this guide:
👉 What Is AOV And Why It’s Crucial for WooCommerce Revenue Growth?
Here, you will learn more about how AOV impacts revenue, profit margins, and long-term scaling, without having to increase your acquisition costs or traffic.
Plus, you should also learn about ways to improve AOV. You will find tactics such as using order bumps, or increasing pricing strategically, etc.
Final note
Use this calculator regularly to track changes over time, especially after making updates to your offers, checkout, or funnel. Check it after promotions. Check it after pricing changes. Check it when something feels different. AOV tends to move before bigger trends become obvious. If you want early signals about the growth potential of your store, this is one of the first metrics to watch.
