What is AOV? Five ways to increase order value while maintaining efficiency

AOV measures an order’s average value

AOV = revenue within the measurement scope / orders within the same scope. Hypothetical net revenue of VND 60 million from 200 completed orders gives an AOV of VND 300,000. Agree on treatment of discounts, returns and shipping fees before comparing.

A higher AOV does not prove better sales. If customers place fewer orders or the shop uses large incentives to increase baskets, total contribution may fall. Track AOV alongside conversion rate, order count and contribution per order.

1. Cross-sell products that solve the next need

Recommend a complementary product when it makes the main item easier to use. For example, a buyer of a coffee brewer may need suitable filter papers; check compatibility rather than attaching any slow-selling item.

Start with one understandable option. Record the take-up rate, additional contribution and suitability feedback. Too many recommendations can complicate checkout.

2. Build bundles around usage needs

A good bundle explains why items belong together, the total price and where customers save or gain convenience. Display quantities, sizes and applicable conditions clearly.

A hypothetical original order of VND 300,000 has variable costs of VND 210,000. Adding an VND 80,000 item with VND 45,000 in extra costs increases contribution from VND 90,000 to VND 125,000. If the bundle receives another VND 40,000 discount, contribution falls to VND 85,000 despite AOV being higher than before.

3. Calculate incentive thresholds from costs

Free or subsidized shipping thresholds should be checked against order-value distribution and actual subsidies. A threshold too low can subsidize most orders that would have happened anyway; one too high makes the offer unattractive to many customers.

If added products increase parcel weight or size, shipping costs also need updating. A larger basket does not guarantee unchanged shipping costs per order.

4. Offer a more suitable version

Suggest a larger-capacity pack or a version with appropriate features if the customer genuinely needs it. Compare functionality, usage volume and total cost without pressuring customers to spend more.

Monitor returns and post-purchase feedback. An expensive order the customer cannot use can also destroy the opportunity for repeat business.

5. Test one change and interpret results

Select a product group, record pre-test figures and introduce one cross-sell recommendation. Where possible, compare with a similar group during the same period. Keep other factors stable or clearly record unavoidable changes.

After enough orders to observe results, check total contribution, conversion rate, order errors and returns. If AOV rises but more customers abandon checkout, revise the recommendation or stop the test. There is no universal optimal AOV for every shop.

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