Average Order Value. The average dollar amount spent by a customer per transaction.
AOV = Total Revenue / Number of Orders. Increasing AOV is one of the three levers for D2C growth (alongside traffic and conversion rate). Common tactics: product bundling, volume discounts, free shipping thresholds, cross-sell recommendations, and post-purchase upsells. A 10% increase in AOV has the same revenue impact as a 10% increase in traffic, but typically at much lower cost.
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