Paid Media

AOV (Average Order Value)

Quick definition

Total revenue divided by total orders in a period.

What it actually means

AOV is the lever most undervalued by new DTC brands. Increasing AOV 20% with the same traffic volume typically increases profit margin by 50-100% because fulfillment, marketing, and platform costs are largely fixed per order. Tactics: bundling, free shipping threshold ~30% above current AOV, upsell apps at cart and post-purchase, product mix optimization, tiered pricing (1 / 2-pack / 3-pack), gift-with-purchase above threshold.

Related terms

LTV (Customer Lifetime Value)

The total revenue a customer generates over their entire relationship with your brand.

CAC (Customer Acquisition Cost)

Total marketing spend divided by new customers acquired in the same period.

Ready to see what your data is telling you?

Book a free strategy call. We'll analyze your current setup, identify the biggest opportunities, and show you exactly where the revenue is hiding.

Schedule a Free Strategy Call