Selling online
Average order value
What it means, how it is used and what to know for your project
Understanding the term
It is the number that determines whether an online shop makes sense. Combined with the margin, it tells you what an order earns and therefore how many orders you need to cover costs.
Increasing it often costs less than attracting more visitors: offer free delivery above a threshold, suggest a relevant extra product, or sell bundles.
Related terms
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