Average Order Value

AOV is the average amount a customer spends per order, calculated by dividing total revenue by the number of orders. Businesses aim to increase AOV by offering product bundles, upselling complementary items, or providing discounts for higher-value purchases. A higher AOV contributes to increased revenue without requiring additional customer acquisition.

For beauty retailers, AOV can be increased through strategies like bundling complementary products — for example, offering a cleanser, toner, and moisturizer together at a slight discount — or by adding free shipping thresholds that encourage customers to add one more item to their cart.