Contents
- Average order value divides total revenue by the number of purchases over the same period.
- It's the fastest lever on ROAS: raising it 20% improves profitability without touching the campaigns.
- An average often masks two distinct populations: better to also look at the median.
Definition
Average order value measures the average amount spent per transaction.
Formula
Average order value = total revenue divided by number of purchases.
Worked example
A store makes 84,000 euros on 1,200 orders, so 70 euros average order value. Adding free shipping from 90 euros, the value rises to 82 euros. At constant ad budget and conversion rate, ROAS improves by 17% without any campaign being touched.
Orders of magnitude
Average order value varies too much by industry for an external benchmark to be useful. What matters is its change and its spread across your own catalog.
The most common mistakes
- Relying on the average alone. A few very high orders pull it up: the median describes the typical customer better.
- Ignoring it in the ad-profitability calculation. An acceptable CPA depends directly on the order value.
- Comparing it across channels without saying so. Brand traffic almost always shows a higher order value than cold acquisition.
Where to find the metric
In GA4, the Average order value metric in the monetization reports, or by dividing revenue by purchases. The ad platforms don't expose it directly.
Frequently asked questions
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