AOV in Shopify: Meaning, Calculation & How to Grow It in 2025?

This post will explain everything you need to know about average order value in Shopify. You’ll also learn how to calculate and increase it to grow your business!

What is AOV (average order value)?

AOV stands for Average Order Value, an e-commerce metric that represents the average amount a customer spends per transaction on a website or app. Mathematically, it is total revenue divided by the total number of orders over a specific period.

AOV offers insights into customer buying patterns, allowing businesses to predict sales performance and identify revenue growth opportunities. A higher AOV indicates that customers are spending more money on each order, leading to increased revenue.

Why is AOV important?

AOV matters because it can help you boost revenue and Return on Ad Spend (ROAS) without necessarily acquiring more customers. By increasing AOV, you can encourage your customers to spend more money each time they buy from your business.

Common misconceptions about AOV

Many people experience challenges when working with AOV. Some wrongly believe that increasing customer amount can increase AOV. However, AOV does not depend on the number of customers.

Including shipping in AOV calculations skews the metric. There are those who think the best way to increase AOV is to simply raise product prices, without considering the impact on conversion rates.

How to calculate AOV?

To calculate AOV, divide the total amount of revenue for a specific period by the total number of orders over the same period. The result is the revenue per order. I’ve illustrated the formula for you:

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Let’s look at a quick example. Imagine that your Shopify store’s total revenue in 2025 is $20,000 from a total of 100 orders. Your AOV is = $20,000/100 = $200.

How can I find AOV on Shopify?

You don’t need to do manual calculations if you know how to find Average Order Value in Shopify. To check yours, click on “Analytics” located on the left-hand menu of your Shopify admin. Your “Average order value” should appear as one of the metrics on the analytics page if you have amde any sales. Feel free to click on the title to open up an AOV Shopify analytics report, where you can select the specific period (e.g., last 30 days, last 365 days).

If you want to compare your AOV to those of stores similar to yours, you can use Shopify benchmarks in “Reports” (under “Analytics”). The report shows your AOV over time and displays the following:

• 25th percentile: 75% of similar stores have a higher AOV.
• Median: the midpoint and the typical AOV for similar stores. 
• 75th percentile: only 25% of similar stores have a higher AOV.

How to grow AOV for Shopify stores?

Now that you understand the basics of Shopify AOV, explore ways to grow yours. I’ve put together 5 simple yet effective methods that work for any product.

1. Use product bundle apps

One of the easiest ways to increase AOV is to offer product bundles with the help of a Shopify bundle upsell app. Bundling is a strategy that involves grouping a set of related items and selling them as a discounted product. It encourages customers to spend more on the transaction, leading to a higher order value.

There are various ways to offer product bundling on your e-commerce store, including the following:

• Quantity breaks
• Volume discount for different products
• BOGO (Buy One, Get One Free)
• BXGY (Buy X, Get Y Free)
• Custom mix-and-match packages

The best bundle apps allow you to explore at least three of the above options. Discover how top product bundle apps compare to each other by reading our recent post. When curating bundles, ensure that the products complement each other in solving the buyer’s problem.

2. Use cross-selling and upselling

Just like product bundling, upselling and cross-selling help you to increase sale value through relevant recommendations with discounts. To upsell is to persuade a customer to upgrade to a more expensive version of a product or an optional add-on. It differs from cross-selling, which persuades customers to buy complementary items that enhance the original product of interest.

For example, imagine that a customer is about to check out a basic smartwatch in a store. Upselling is suggesting they upgrade to an advanced model, and cross-selling is recommending a screen protector.

Here are some popular upsell methods:

• Relevant, product-specific offers on targeted pages
• One-click upsells after a purchase
• Checkout add-ons
• Email post-purchase offers

Consider integrating cross-sells and upsells as seamlessly as possible and avoid intrusive designs. You should also try to make the offers affordable. Check out the best Shopify upsell apps to get better results from this strategy.

3. Use discounts & free shipping thresholds

Free shipping is a common incentive in e-commerce, and that’s because it’s super effective. To boost AOV, you can create a minimum order threshold above which customers qualify for free shipping, discounts, coupons, or free gifts.

Setting the right threshold is crucial for this strategy to work. You want to know your most frequently occurring (modal) order value first. Next, set your threshold to 10–50% above your modal value. Be careful here because making the increment too low eats into your margins, and making it too high could increase cart abandonment rates. Most marketers recommend that you set it to 30% above your modal. So if most of your orders are worth $100, your minimum order threshold for freebies should be $130.

This method works because it lets the majority of your customers lower their per-unit shipping cost while increasing your revenue and profit per order.

4. Test different pricing

Analyzing the impact of your pricing strategies helps you identify areas for AOV improvement. Don’t just test different price points; try various pricing models too. 

You could introduce a subscription model, tiered pricing systems, or payment plans. What matters is that you maximize revenue and avoid leaving money on the table.

Implement email marketing

Email marketing is a cost-effective way to send targeted and personalized content to your customers. You can use it to boost AOV by sending personalized product recommendations, offering product bundles, and promoting upsell opportunities.

Email marketing is also a fantastic way to introduce tiered loyalty programs that encourage higher spending in exchange for special perks.

For more unique Shopify strategies to increase average order value, check out our in-depth guide on how to grow AOV.

Key metrics to track when trying to improve AOV

If you want to maximize your AOV, consider the impact of other metrics on it and vice versa. That way, you can ensure all-round business growth and avoid hurting other essential metrics. The table below shows key metrics to track:

Shopify AOV trends for 2025 and beyond

With many Reddit users complaining about Meta Ads becoming more expensive and difficult to compete in, constantly improving your AOV becomes a necessity, not a luxury. It’s not enough to switch to a different ad platform, because Google and even TikTok have the same problem.

To help you succeed in the long run, here are a few ideas for the future of AOV improvement and competition in the paid marketing space:

1. E-commerce personalization is becoming more important, and Artificial Intelligence (AI) is set to be its driving force in the years to come.
2. Shoppers demand a seamless customer experience across all platforms. Upselling apps that offer all-in-one solutions with branded integrations will be vital.
3. Providing live chat on product and checkout pages can help shoppers complete their purchase and increase conversion rate.
4. Convenience is a key AOV driver in 2025, and one-click post-purchase upsells are becoming more effective.

Conclusion

Increasing Average Order Value (AOV) can boost profit without increasing ad spend. To optimize your AOV, explore the tips I provided in this post and monitor all of the suggested metrics. Keep the recent trends in mind to ensure that you remain ahead of your competition and maintain a high AOV for years.