What is Average Order Value (AOV)? A Major Revenue Multiplier for Ecommerce

Average Order Value (AOV) is the average amount a customer spends in each transaction.

It's calculated by dividing total revenue by the number of orders. For example, if your online store made $10,000 from 100 orders this month, your AOV would be $100.

As of late 2024, the global average AOV was around $144 (approx. £114), an 8.7% increase year-over-year. This metric varies widely by sector: luxury and jewelry orders average >$400, while beauty and personal care hover around $70.

Why should business leaders care about AOV?

Because increasing AOV boosts revenue and profitability without requiring new customers. A higher AOV means more items or higher-priced products per checkout, which improves profit margins and helps cover marketing and fulfillment costs.

Want to drive consistently higher AOV from your mobile shoppers? Try launching a mobile app. Use our eCommerce App Revenue Calculator to see just how much you can add to your business by launching your app.

Why Does AOV Matter for Growth and Profitability?

AOV isn't just a vanity metric; it has real strategic importance for ecommerce businesses.

When you increase the average value of each order, you're getting more revenue out of each customer visit, for no extra cost.

This dramatically improves profitability, because the costs to acquire or serve that customer (marketing, shipping, transaction costs) can be spread over a larger purchase size.

If it costs you $10 in ads to get a customer to your site, having them spend $100 versus $50 in that session makes a huge difference to your bottom line.

Higher AOV improves your return on ad spend (ROAS) and makes customer acquisition campaigns more sustainable. Moreover, AOV ties into customer lifetime value (CLV). If customers spend more per order, they're almost certainly going to contribute higher lifetime value.

A high AOV can also signal strong product-market fit or effective merchandising. It might mean customers love your products enough to buy multiples or add complementary items.

Industry Benchmarks for AOV

When assessing your AOV, it's useful to compare against benchmarks in your industry. What's considered a strong AOV differs vastly between a luxury fashion retailer and a grocery delivery service.

By late 2024, the global average AOV across online retail was about $144.52 (approx. £114.25), an increase of 8.7% from the previous year.

AOV has been trending upward annually, partly due to inflation and partly due to successful upselling strategies by retailers.

By Industry:

• Luxury & Jewelry: The highest AOV, around $436 per order on average
• Home & Furniture: Approximately $253 per order
• Consumer Electronics/Equipment: In the $200+ range
• Fashion & Apparel: Around $196 per order
• Food & Beverage: Around $114 per order
• Pet Care: Roughly $83 per order
• Beauty & Personal Care: Only about $71 per order on average

These benchmarks highlight how AOV reflects product price points and purchasing patterns. Luxury is high because even one item is pricey. Beauty is low because items are cheap and often bought one at a time (unless bundled).

It's also useful to note seasonality: AOV can jump during holidays (customers buy more items for gifts per order) and can dip in off-season periods. In one fashion industry analysis, order values peaked in spring around April to May and again during fall, aligning with seasonal refreshes and holiday prep.

What Strategies Increase AOV in Ecommerce?

Ecommerce brands use various tactics to encourage customers to add extra items or choose premium options (and thus spend more in each order).

The overarching principle is to provide additional value or convenience that makes a larger purchase natural and appealing.

Upselling and Cross-Selling

Upselling means suggesting a higher-end or higher-volume version of the product the customer is considering, while cross-selling means recommending complementary products.

A classic cross-sell is Amazon's "Frequently Bought Together" and "Customers also bought" sections, a strategy so effective that a McKinsey report estimated 35% of Amazon's sales come from recommendations like these.

Product Bundling

Product bundling means selling multiple related items as a package, often at a slight discount or with added convenience, to encourage a larger total purchase.

Bundles can take many forms: a bundle of complementary items (e.g., camera + lens + bag sold together), a "kit" or set of products that go well together (e.g., a skincare routine set with cleanser, toner, and moisturizer), or a bulk pack of the same product.

The idea is to increase the units per transaction, thereby increasing the order value. Bundles create a sense of value and savings, the customer feels they're getting more for a good price. They also simplify decision-making.

Loyalty and Rewards Programs

A loyalty or rewards program can elevate AOV by incentivizing customers to spend more to earn rewards or reach the next tier of benefits.

Customers will usually add extra to their cart if they know it earns them something tangible in return. "Spend $100 to get 100 points and a $10 reward" can prompt a $90 cart to creep over the $100 mark.

Data supports this; one study found that customers who redeem points when purchasing spend 39% more on that purchase, on average.

A great example is Sephora's Beauty Insider program. Sephora's loyalty members tend to have higher average spend; they are often tempted to add one more item to get the next 100-point perk or to use a promotional code that requires a minimum spend.

Dynamic Free Shipping Thresholds

Offering free shipping above a certain cart value is one of the oldest and most effective tactics to increase average order value.

People hate paying for shipping. So when you present a threshold (e.g., "Free shipping on orders over $50"), many will add extra items to avoid the fee.

The key is to set the threshold strategically just above your current AOV or target AOV. For example, if your typical order is $45, you might set free shipping at $60. Customers with $45 in their cart see that they're close to free shipping and often will find something to add to reach $60.

A study by Salesforce in 2024 noted that your free shipping threshold should be roughly 30% higher than your current AOV, high enough to push customers, but not so high that it feels unreachable.

Personalization and Product Recommendations

Personalization involves tailoring the shopping experience to each user's preferences and behavior. It's a powerful driver of larger basket sizes when done correctly.

Modern shoppers have come to expect some level of personalization. Surveys show that 80% of customers say the shopping experience should be better tailored given all the data companies collect, and 65% expect companies to adapt to their preferences.

According to Salesforce's data, personalized product recommendations now account for 26% of total ecommerce revenue on average, despite being a small fraction of the content shown. That underscores how effective relevant suggestions can be.

How Can Mobile Apps Drive Higher AOV?

Mobile apps consistently outperform desktop and mobile websites when it comes to AOV. The majority of brands see anywhere from 10-50% higher AOV from transactions in their mobile app.

Here's why.

App-Exclusive Offers and Features

Many brands now offer mobile apps not just for convenience, but as a channel for VIP customers with exclusive perks. App-exclusive offers can significantly boost AOV by giving customers reasons to shop in the app and load up their cart.

The psychology here is treating app users as an insider club. When customers feel they're part of a privileged group, they often engage more deeply and spend more.

One concrete example: BÉIS, a travel accessories brand founded by Shay Mitchell, leveraged its mobile app to create a VIP experience. They share behind-the-scenes content and product drops exclusively on the app. The result? App users of BÉIS have a 19% higher AOV compared to those on the mobile website.

Mobile UX Improvements

Improving the mobile user experience (UX) of your store whether in-app or mobile web, can indirectly but meaningfully raise AOV.

A huge portion of ecommerce traffic is now on mobile devices (mobile commerce comprised about 35% of sales during Cyber Week 2024).

If the mobile experience is clunky, customers may limit their browsing or stick to one item and checkout quickly (or abandon). A smooth, engaging mobile UX encourages users to view more products and complete multi-item purchases.

Key areas of mobile UX that impact AOV include: navigation and discovery, site speed, and checkout ease. If your app or mobile site makes it easy to find related products (through intuitive menus, filters, or recommendation carousels), users are more likely to add those items.

What Real-World Results Have Brands Achieved?

Let's look at some real-world examples of how direct-to-consumer (DTC) and ecommerce brands have implemented AOV-boosting strategies:

BÉIS (Travel Goods)

By funneling their most engaged customers to the app and offering app-exclusive content and early product access, they cultivated a community that shops more frequently and in higher amounts. The app saw a 19% higher AOV than the mobile website.

Kopari Beauty (Personal Care)

This brand implemented a "buy more, save more" upsell on product pages. For instance, on a product that normally sells as one unit, they offer a duo at a discounted rate. This kind of upsell led many customers to choose the 2-pack, effectively doubling the revenue from that order minus a small discount.

John's Crazy Socks (Apparel/Gifts)

This brand's gift wrap add-on is a simple cross-sell at checkout that adds $2 to the order. For a company that sells socks (low-priced items), getting an extra $2 is significant proportionally.

La Roche-Posay (Beauty)

La Roche-Posay implemented a free gift with purchase over $X promo, "Get a 4-piece sample kit on orders $70+". This effectively increased their AOV as customers aimed for that $70 basket.

MeUndies (Apparel)

The underwear brand has a section called "Match Me" to encourage buying for couples, matching underwear sets for you and your partner. This is a clever cross-sell where they tap into a social/shared experience to increase AOV.

How Can Your Brand Achieve Higher AOV?

Many AOV-boosting tactics can be implemented incrementally and with modest resources, especially if you're using modern ecommerce platforms like Shopify, WooCommerce, or BigCommerce.

Start with the Low-Hanging Fruit

Some changes require just a small tweak or addition. For example, setting a free shipping threshold is usually a basic setting in your store's shipping options, decide on a threshold (use your current AOV + ~10-20% as a guideline to start), and update your shipping settings.

Similarly, creating a few product bundles can be as easy as adding new bundle products in your catalog (or using a bundling app). You don't need a fancy algorithm to pick a couple of complementary products and sell them together at a discount.

Leverage Apps and Integrations

You don't have to custom-build everything. There are one-click upsell apps, cross-sell recommendation apps, loyalty program apps, etc. For instance, on Shopify, apps like ReConvert or Candy Rack handle post-purchase and in-cart upsells; Smile.io or LoyaltyLion can launch a basic loyalty points program quickly.

Evaluate which tactic might yield the best ROI for you and try an app in that category. (Pro tip: implement one major app at a time and measure results, rather than 5 at once, to know what's moving the needle.)

Use Your Existing Content and Channels

If building personalization algorithms is out of reach, you can still personalize in simpler ways. For example, manually create "Recommended" collections on your site and promote those in your marketing emails or homepage.

Use your email newsletter or SMS to encourage larger baskets: send an email saying "Our top picks to complete your skincare routine" highlighting items that go well together.

Focus on Customer Value (Not Just Your Revenue)

AOV tactics should ideally create a better experience for the customer. Brainstorm from the customer's perspective: "What would I find useful or delightful that might also make me spend more?"

If you approach AOV increases through the lens of adding customer value, you're more likely to succeed and not face backlash. Plus, satisfied customers tell friends and come back (long-term benefits beyond one order).

What Pitfalls Should You Avoid?

Watch out for these things as you strive to boost AOV in your online store:

Over-emphasis on AOV vs. Other Metrics

Chasing AOV in isolation can lead to decisions that hurt other parts of the business. For example, you might push an upsell that indeed raises AOV but annoys customers, causing a drop in customer satisfaction or conversion rate.

Is it better to have a higher AOV or a higher conversion rate? Ideally both, but sometimes there's a trade-off. If upsell prompts are too aggressive, some customers might abandon carts. AOV of completed orders might rise, but overall sales could fall if conversion tanks.

Many experts stress balancing AOV with metrics like conversion rate, lifetime value (LTV), and customer retention. A holistic view is needed: it's the long-term revenue and profit per customer that matter, not just squeezing out one big order.

Customer Experience Backlash

Some AOV tactics can feel like nickel-and-diming. For instance, if a site bombards users with add-on offers at every click, it can degrade the experience.

Similarly, setting a free shipping threshold too high above typical order value might frustrate customers who feel it's unattainable, potentially driving them to competitors.

The strategic debate here is short-term AOV vs. long-term loyalty. As one source pointed out, fostering loyalty tends to have higher long-term ROI than single-mindedly boosting AOV at the expense of customer satisfaction.

Discount Dependency

Relying too heavily on discounts or promotions to drive up AOV can train customers to only buy when there's a deal. This can erode margins and brand premium over time.

There's also the pitfall of margin impact: If you raise AOV by giving large volume discounts, ensure you're not sacrificing so much margin that the higher revenue doesn't translate into higher profit.

How MobiLoud Helps You Drive Higher AOV

Want a proven way to raise your AOV while delighting your best customers? Launch a mobile app, with MobiLoud.

MobiLoud transforms your existing website into a fully branded iOS and Android app, without needing to rebuild or manage anything separately.

Your app mirrors your current site and tech stack, but adds the mobile-native elements that boost engagement, conversions, and importantly, order value.

Here’s how a MobiLoud-powered app helps lift AOV:

• Larger carts, consistently: Brands using MobiLoud typically report 30% higher AOV from app users. Mobile apps create a smoother, distraction-free experience that keeps customers browsing and buying more.
• Built-in loyalty and retention: The app becomes a hub for loyalty programs, app-only offers, and personalized perks, giving customers more reason to hit higher cart values.
• Push notifications that convert: Tap into the most effective channel for re-engagement. MobiLoud helps you run high-performing push campaigns that drive users back in with personalized, time-sensitive offers that increase basket size.
• One-tap upsells and frictionless UX: Your app offers an Amazon-like UX with one-click add-to-cart and checkout. It's designed to maximize conversions and order volume on mobile - where the majority of ecommerce traffic happens.

Most importantly, this isn’t another tool you need to figure out yourself. MobiLoud is a done-for-you, service-driven solution.

Our team handles everything, from setup, QA, and App Store submission to strategic support post-launch, to make sure your app actually drives meaningful ROI.

Ready to see what your brand’s app could look like? Get a free preview and see how easy it is to turn your mobile traffic into higher revenue and repeat purchases.

Final Thoughts: AOV as Your Growth Engine

Unlike chasing new customers, boosting AOV means earning more from people already in the door. That’s higher profit, less spend. In a world where acquisition costs keep climbing, this is a strategy you can’t ignore.

The best part? It’s not about tricks. It’s about enhancing the customer experience. Think:

• Smart upsells and cross-sells
• Loyalty perks
• Personalized recommendations
• Bundling or volume discounts

Done right, it’s a win-win. Customers get more value, you get bigger checkouts.

Want to lift AOV? Start here:

• Personalize the path to purchase (think: “You might also like…”)
• Make checkout frictionless (1-click, digital wallets)
• Use incentives strategically (free shipping thresholds, bundle deals)
• Highlight social proof to build trust on higher-ticket items

The future of AOV optimization is all about personalization, tech that feels invisible, and authentic customer engagement. Brands that do this well will enjoy better margins and customer loyalty.

Remember: AOV isn’t just a number. It’s a reflection of how well you're delivering value - and how much trust your customers place in you to deliver more.