Average order value, or AOV, is one of the first numbers any Shopify store owner learns and one of the least carefully measured. Most people look at the figure on their dashboard, see that it went up or down, and move on. That is fine for a rough sense of direction. It is not enough when you are deciding whether a new upsell, a free shipping threshold or a bundle is paying off.
This guide covers the formula, where to find AOV in Shopify, the traps that quietly distort it, and a simple way to track it so you can trust what it tells you.
What Is Average Order Value?
Average order value is the average amount a customer spends per order over a set period. It tells you how much revenue each order brings in, which matters because every order carries fixed costs such as packaging, payment fees and often shipping.
If you want to raise revenue without buying more traffic, AOV is one of the three levers, alongside conversion rate and the number of visitors. For ways to move it, see our guide on how to increase average order value in Shopify.
The AOV Formula
The formula is simple:
AOV = total revenue ÷ number of orders
Here is a worked example. Say your store took $6,000 in revenue from 80 orders last month:
- $6,000 ÷ 80 = $75 AOV
Now suppose that next month revenue is $7,200 from 80 orders. AOV is $7,200 ÷ 80 = $90. Traffic and order count did not change, but each order is worth $15 more. That is the effect you are trying to measure whenever you change something in the cart.
Where to Find AOV in Shopify
Shopify reports average order value in its built-in analytics, and you can see it on the main Analytics dashboard and in its sales reports. The menu names change from time to time, so look for the report that shows sales over time with an "Average order value" line, then set the date range and compare it with the previous period.
A few ways to view it that are worth knowing:
- Over time. A weekly or monthly line shows the trend instead of a single number.
- By channel. Orders from email, paid ads and organic search often have different AOVs.
- By device. Mobile and desktop shoppers frequently buy differently.
- New versus returning customers. Returning customers often spend more per order.
If your cart tool has its own analytics, use it as a second view. For example, Brix reports revenue, orders, average order value and conversion rate, and also breaks out the revenue that came from the cart drawer, upsells, bundles and coupons, so you can see which feature earned each extra dollar.
Five Things That Distort Your AOV
The formula is easy, so the problems come from what goes into it. Check these before you trust any number.
1. Refunds and returns. If refunds are not subtracted, AOV looks higher than your real take. Decide whether you are measuring gross or net, and stay consistent.
2. Discounts. A big sale can raise order counts and lower AOV at the same time. Compare AOV during a promotion to AOV during a promotion, not to a normal week.
3. Shipping and taxes. Some reports include them and some do not. If one month includes shipping revenue and the next does not, the comparison is not fair.
4. Outliers. A single wholesale order or a one-off bulk purchase can move the average on a small store. If your AOV jumped, scan for a handful of unusually large orders before celebrating.
5. Mix changes. If you launch a cheaper product line, AOV can fall even though nothing is wrong. If you stop selling a low-priced item, AOV rises without any change to the cart. Look at the products behind the number.
AOV Is Not the Only Number
AOV on its own can mislead you. A change that raises AOV but lowers your conversion rate may leave revenue flat or lower. Always read AOV next to:
- Conversion rate. Are fewer visitors completing the purchase?
- Orders per day. Did volume drop while value per order rose?
- Margin per order. Did you raise AOV by discounting so heavily that profit fell?
- Revenue per visitor. This blends conversion and AOV into one measure of how well each visit turns into money.
A healthy change moves AOV up while the other numbers hold steady or improve.
How to Track AOV Properly
A simple routine is more useful than a complicated one.
- Set a baseline. Record AOV for the last four to eight weeks before you change anything, ideally excluding unusual promotions.
- Change one thing at a time. If you add a free shipping bar and a bundle in the same week, you will not know which one worked. The free shipping threshold guide covers one such test.
- Wait long enough. Give a change at least two to three weeks of normal traffic before judging it.
- Compare like with like. Use the same date range lengths, and watch out for seasonal swings and holidays.
- Keep a change log. A simple note of what you changed and when turns your AOV chart into something you can explain later.
Which Changes Move AOV
Once you can measure it, these are the usual levers to test:
- A free shipping or reward threshold set slightly above your current AOV, covered in our free shipping bar guide and shown in practice in the rewards progress bar case study.
- Relevant cart upsells and frequently bought together suggestions.
- Product bundles built from items customers already buy together.
- Conditional offers shown in the cart, such as a coupon slider.
Test one at a time and use the tracking routine above to see what each one does.
Conclusion
AOV is a simple number with a lot of ways to go wrong. Use the formula, total revenue divided by number of orders, then protect the result from refunds, discounts, shipping differences, outliers and changes in your product mix. Read it next to conversion rate and margin, and track it with a baseline, one change at a time, and a few weeks of patience.
If you do one thing today, open your Shopify analytics, write down your AOV for the last eight weeks, and note the date of any promotion in that period. That is your baseline, and every future test gets measured against it.
Frequently Asked Questions
How do you calculate average order value? Divide your total revenue by the number of orders in the same period. For example, $6,000 in revenue from 80 orders gives an AOV of $75.
Where do I find average order value in Shopify? In the Analytics section of your Shopify admin, in the report that shows sales over time with an average order value line. You can change the date range and compare it with a previous period. Menu names may change, so look for the AOV line in the sales reports.
Should AOV include shipping and taxes? Either approach works as long as you stay consistent. Many stores track AOV on product revenue only, so shipping and tax changes don't distort the comparison. The important thing is to use the same definition in every period you compare.
How often should I check AOV? Weekly is enough for most stores, looking at a rolling four-week view so one unusual day doesn't mislead you. After making a change, wait two to three weeks before drawing conclusions.
Is a higher AOV always better? No. If a higher AOV comes with a falling conversion rate or much lower margins, you may be earning less overall. Read AOV together with conversion rate, orders per day and margin per order.
Why did my AOV drop even though sales went up? This usually means more orders at lower values, for example from a sale, a cheaper product launch or a new traffic source. Revenue can rise while AOV falls, so check the products and channels behind the number.