How to Calculate Average Order Value (AOV) in WooCommerce

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If you're running an e-commerce store, understanding and tracking your customers' behavior is vital to your success. One way to analyze customer behavior is by calculating the average order value (AOV) of your store. AOV is a metric that measures the average amount spent by customers per order. In this article, we'll discuss what AOV is, why it's essential for your WooCommerce store, and how to calculate and improve it using various methods.

Understanding Average Order Value (AOV) and Its Importance

Before we dive into the technical details, let's first take a step back and understand the significance of AOV. AOV is a vital metric as it gives you valuable insights into your customers' purchasing habits and helps you determine how much your customers are willing to spend. By tracking this metric, you can optimize your pricing strategies and marketing campaigns to improve customer lifetime value (CLV) and overall revenue of your store.

Understanding your customers' purchasing habits is crucial for any business. By analyzing AOV, you can identify which products or services are popular among your customers and which ones are not. This information can help you make informed decisions about your inventory and marketing strategies. For example, if you notice that customers are spending more on a particular product, you can increase its visibility on your website or offer promotions to encourage more sales.

What is Average Order Value (AOV)?

AOV is a metric that calculates the average amount spent by customers per order on your WooCommerce store. To calculate AOV, you need to divide the total revenue of your store by the number of orders received over a given period. For example, if your store has earned $10,000 in revenue over the course of a month and had 100 orders during that time, your AOV is $100 ($10,000 ÷ 100).

It's important to note that AOV can vary depending on the type of products or services you offer. For instance, a store that sells luxury items may have a higher AOV than a store that sells everyday household items. Understanding your store's AOV can help you set realistic revenue goals and make informed decisions about your pricing strategies.

Why is AOV Important for Your WooCommerce Store?

As mentioned earlier, AOV is an essential metric for your e-commerce store as it directly impacts your revenue and profits. With a higher AOV, you can make more money from every order, and with a lower AOV, you may struggle to achieve profitability and growth. By tracking AOV, you can identify trends and patterns in customer behavior, giving you valuable insights on how to optimize your store for higher profitability.

One way to increase your store's AOV is by offering bundled products or upselling. For example, if a customer is purchasing a camera, you can offer them a bundle that includes a memory card and a camera bag at a discounted price. This not only increases the AOV but also provides customers with a better shopping experience.

Another way to increase AOV is by offering free shipping on orders that exceed a certain amount. This encourages customers to add more items to their cart to qualify for free shipping, increasing the AOV. Additionally, you can offer promotions or discounts for customers who spend a certain amount, which can also increase AOV and customer loyalty.

In conclusion, AOV is a crucial metric for any e-commerce store. By understanding and tracking this metric, you can make informed decisions about your pricing strategies, inventory, and marketing campaigns, ultimately leading to higher revenue and profitability.

Setting Up Your WooCommerce Store for AOV Calculation

Before you can start calculating AOV, you need to ensure that your WooCommerce store is set up correctly to capture all the necessary information. Here are the critical aspects you need to set up:

Installing and Configuring WooCommerce

If you haven't already done so, you need to install and activate WooCommerce on your WordPress site. Once installed, you need to configure your store settings, including payment gateways, shipping options, and tax rates.

Adding Products and Setting Up Payment Gateways

Once you've set up your store settings, you need to add products and configure the payment gateways to ensure that customers can make purchases on your store seamlessly. Make sure that you provide a smooth checkout experience that encourages customers to return in the future.

Methods for Calculating AOV in WooCommerce

Now that your store is set up correctly, you're ready to start calculating AOV. There are several methods you can use, and we will discuss the three most common ones below:

Manual Calculation of AOV

The most straightforward method of calculating AOV is by manually calculating revenue and orders received over a specific period. To calculate the AOV, you simply divide the total revenue by the number of orders received in that period.

Using WooCommerce Reports

WooCommerce offers various inbuilt reports that allow you to generate reports on different aspects of your store. You can use these reports to calculate AOV. To access these reports, you need to go to your WordPress dashboard and select "WooCommerce" and "Reports."

Utilizing Google Analytics for AOV Calculation

If you're using Google Analytics, you can use the e-commerce tracking feature to track AOV for your WooCommerce store. To activate this feature, you need to configure your WooCommerce store to work with Google Analytics. Once set up, you can access the e-commerce tracking report in Google Analytics to analyze metrics such as AOV.

Tips to Increase Your WooCommerce Store's AOV

Now that you understand how to calculate AOV let's discuss some strategies to increase it. Here are our top tips to boost your WooCommerce store's AOV:

Implementing Product Bundles and Discounts

One way to increase AOV is by offering product bundles and discounts. By bundling products together, you can offer customers a more significant value proposition, which encourages them to spend more. Similarly, discounts on higher-priced items can incentivize customers to spend more to take advantage of the offer.

Offering Free Shipping Thresholds

Offering free shipping thresholds can also increase AOV. By setting a minimum purchase amount to qualify for free shipping, customers are encouraged to purchase more items to reach that threshold. This approach can also help increase customer loyalty, encouraging them to return to your store for future purchases.

Upselling and Cross-selling Strategies

Implementing upselling and cross-selling strategies can help increase AOV. By offering related or complementary products during the checkout process, you can encourage customers to add more items to their cart, boosting their overall spend. Upselling can involve offering a higher-priced version of a product, while cross-selling involves promoting related products that complement the customer's purchase.

Monitoring and Analyzing AOV Over Time

Tracking AOV is an ongoing task that requires constant monitoring and analysis. Here are some tips to help you track AOV over time:

Identifying AOV Trends and Patterns

Identify trends and patterns in AOV to gain valuable insights into your customers' behavior. By tracking AOV over time, you can identify seasonal trends, promotions that have been successful, and products that are performing well.

Adjusting Your Marketing Strategies Based on AOV Insights

Armed with the insights gained from AOV analysis, you can adjust your marketing strategies to optimize AOV. For example, if you identify a particular product that has a lower AOV, you can develop a campaign to encourage more purchases of that item. Similarly, if you see that customers respond well to product bundling, you can offer more bundles in the future.


Calculating and improving your WooCommerce store's AOV is vital to your e-commerce success. By understanding your customers' behavior, you can optimize your pricing strategies, marketing campaigns, and store layout to increase profitability and customer lifetime value. By tracking AOV and implementing various strategies to increase it, you'll be well on your way to achieving e-commerce success.

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