Average Order Value (AOV) is a key ecommerce metric that shows the average amount spent each time a customer places an order on your website. It is calculated by dividing total revenue by the number of orders over a specific period.

Formula:
AOV = Total Revenue / Number of Orders

AOV helps you understand customer buying behavior and the effectiveness of your marketing and pricing strategies. A higher AOV means each customer is spending more, which can increase your profit without needing to attract more traffic.