# What is AOV – Average Order Value?

What is AOV – Average Order Value? Total revenue divided by number of orders. The biggest lever for increasing revenue without more advertising.

## How it works in practice

Doubling AOV from $40 to $55 means +33% revenue from the same traffic. Upsell + bundle + a free shipping threshold.

## Related metrics

- LTV — high LTV means high AOV × repeat purchases
- ROAS — high AOV means high ROAS
- Upsell / Cross-sell — the main tools
- Free Shipping Threshold — a strong lever

## Common misconception

'Low AOV means cheap products.' Not true. Low AOV means there's no upsell, bundle, or free shipping threshold.

## How to fix it

Low AOV? (1) set a free shipping threshold at 20-25% above AOV, (2) an order bump at checkout, (3) a 3-product bundle with a 10% discount.

## Real-world example

A soap store: AOV was $23. Free shipping above $33 plus a bundle plus an order bump raised AOV to $35.

## Where to start

Free shipping threshold → bundle → order bump → post-purchase upsell.

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Category: Finance · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/aov-average-order-value