How do I calculate average order value?

Divide revenue by the number of orders over the same period. $9,000 of revenue from 200 orders is an AOV of $45. Shopify shows it on the Analytics dashboard as 'Average order value'.

What is the fastest way to increase AOV in ecommerce?

A free shipping threshold set a little above your current AOV is usually the quickest to set up, because it needs no new products and no app. Bundles and 'frequently bought together' recommendations come next. Change one thing at a time so you can see what worked.

Can raising AOV hurt my store?

Yes, if it costs you orders or margin. A threshold set too high can lower conversion rate, and deep bundle discounts can raise AOV while cutting profit per order. Track conversion rate and gross profit per order alongside AOV.

How to Increase Average Order Value in Your Online Store

Short answer

To increase average order value (AOV), give customers a reason to add one more item before they pay: a free shipping threshold just above your current AOV, bundles of products bought together, "frequently bought together" recommendations, and volume pricing ("2 for $40"). Change one thing at a time, and judge it on profit per order, not AOV alone.

How to calculate AOV

AOV = revenue ÷ number of orders for the same period.

$9,000 from 200 orders = $45 AOV
In Shopify: Analytics → Dashboards, card "Average order value"
In WooCommerce: the built-in Analytics reports show "Average order value"

Write down your AOV, conversion rate and gross margin for the last 30 days before you change anything. That is your baseline.

Why AOV matters

Revenue = visitors × conversion rate × AOV. Raising AOV is the only one of the three that does not need more traffic.

An illustration (not a measured result): a store with 200 orders a month at $45 makes $9,000. If the same 200 customers spend $52 instead, revenue is $10,400, about 16% more with no extra marketing.

1. Set a free shipping threshold

The simplest place to start, because it needs no new products.

Where to set it: a little above your current AOV. If AOV is $45 and most orders are $35 to $55, try $55. Far above what customers usually spend and most will not bother; at or below AOV and you give free shipping to orders that would have happened anyway.
Show the gap: "You're $8 away from free shipping" in the cart. Many themes and cart apps can show this as a progress bar; check your theme settings before installing an app.
Check the cost: work out what free shipping costs you on an order right at the threshold. If it wipes out the margin, raise the threshold or include part of shipping in prices.

2. Bundle products that belong together

A bundle sells several items as one product, often at a small discount.

Good bundles: a starter kit (camera, case, memory card), a refill pack, a "complete the routine" set, a gift box
Discount: small enough that the bundle still earns more profit than the single item. Do the sum before you launch.
On Shopify: the free Shopify Bundles app, made by Shopify, creates fixed bundles without a paid app.

3. Recommend what goes with it

"Frequently bought together" and "you may also like" blocks on product and cart pages put the add-on in front of the customer at the right moment.

On Shopify: the free Search & Discovery app, made by Shopify, lets you set complementary products for each item.
Pick add-ons that cost less than the main item and genuinely go with it: a case with a phone, wax with a candle, a refill with a starter kit.

4. Use volume and tiered pricing

"Buy 2, get 10% off"; "3 for $30"; "Spend $100, get $15 off"
Works best for consumables and gifts: coffee, skincare, socks, candles
Set the tier just above what a typical basket already contains, so customers have to add one item

5. Offer an add-on after checkout

A post-purchase offer shows one more product on the thank-you page, which the customer can add without re-entering payment details. On Shopify this needs an app, such as ReConvert or Zipify OCU. Offer one relevant product, not a catalogue, and price it as a reason to buy now.

6. Make the bigger option the obvious choice

Sell larger sizes or multi-packs next to single items, with the price per unit shown
Offer a subscription for products customers reorder; on Shopify the free Shopify Subscriptions app, made by Shopify, handles recurring billing
Put a gift wrap or gift message option in the cart around holidays

How to test without fooling yourself

Change one thing, then wait at least two weeks, or a full sales cycle if your sales are lumpy.
Compare the same period before and after, and avoid holidays and sales on either side.
Look at three numbers together: AOV, conversion rate and gross profit per order. If AOV rises but conversion falls by more, you are worse off.
Keep what works and stack the next tactic on top.

What to do first

Work out your current AOV and the typical order range.
Set a free shipping threshold just above AOV and show the gap in the cart.
Add "frequently bought together" to your top five sellers.
Build one bundle around your bestselling product.

Then look at repeat buying, which is the other half of revenue per customer: see how to drive repeat purchases.