The AOV measures your customers’ total average amount when they perform a successful purchase in your store. An increase in AOV indicates the success of conversion rate optimization and relevant product recommendation strategy.
The formula to calculate AOV is as follows:
AOV = Revenue / No.of orders
For instance, if your revenue is $5000 and the total number of orders was 100, then the AOV will be ($5000/100) which is $50. This means that, on average, a customer will spend $50 for each transaction in your store.