Understanding the Average Order Value (AOV) on Shopify

The average order value (AOV) on Shopify is a key metric that can provide valuable insights into the spending habits of your customers and help you optimize your pricing strategies.

What is the Typical AOV on Shopify?

According to estimates, the typical Average Order Value (AOV) on Shopify for most stores ranges between $50 to $100. However, this can vary widely based on factors such as the industry, product type, and target market segment. As Shopify continuously evolves, it's important to check recent reports or your own analytics tools for the most up-to-date figures.

Tips for Maximizing Your AOV

To increase your AOV, many Shopify merchants use strategies like upselling, cross-selling, and offering free shipping on orders over a certain value. This not only enhances the value perception of their products but also encourages customers to spend more. For instance, if you offer free shipping for orders over $50, you might see an increase in cart values as customers add more items to qualify for this offer.

Hitting the Top Tier of Shopify Stores

While the average AOV for Shopify stores typically falls within the $50 to $100 range, some merchants are able to achieve significantly higher AOVs. Based on our benchmarks, any store with an AOV of over $193 would place them among the best 20% of all Shopify stores we have analyzed, and any AOV over $311 would place them in the top 10%.

Calculating Your Average Order Value (AOV)

To calculate your AOV, simply take the total revenue from your store over a period of time and divide it by the number of orders placed during that same period. For example, if your store generated $100,000 in sales over the course of a month and you had 2,000 orders during that same period, your AOV would be $50. This metric is essential for understanding customer spending habits and adjusting your pricing and product strategies accordingly.

Interpreting Your AOV

When interpreting your AOV, it's important to understand that a higher AOV is not automatically better; it depends on your specific business model and goals. For instance, if you primarily offer luxury products, a higher AOV might be more appropriate, whereas a retail store might aim for a lower AOV to maximize order volume.

Best Practices for Accurate AOV Tracking

To get the most accurate representation of your AOV, be sure to include any shipping or taxes that are associated with each order. These can significantly impact your AOV and provide a more comprehensive view of the customer's spending experience.

Contact for Help

If you're unsure about how to calculate or interpret your AOV or need assistance with optimizing your Shopify store, don't hesitate to contact our expert team. We are here to help you achieve your e-commerce goals.