AOV formula
Average order value equals revenue from completed orders divided by the number of completed orders in the same period. If a store records $12,500 in order revenue across 250 orders, its AOV is $50. Count orders, not customers or items, in the denominator.
Set a consistent revenue definition
Decide whether the numerator includes discounts, refunds, shipping charges, and tax, then use that definition consistently. A dashboard's "gross sales" may not be comparable with another system's net revenue. If several currencies are involved, convert to one reporting currency using a documented method before calculating.
Do not mistake a higher AOV for success
AOV can rise while order volume or margin falls. Bundles, minimum shipping thresholds, and higher-priced products may change the metric, but their effect on customer experience and profit must be measured separately. Review conversion rate, repeat purchase, contribution margin, and total revenue alongside AOV.