Product metrics and goals
Average order value (AOV)
Also called AOV, Average transaction value, Basket size
How much people spend per order on average: total sales divided by the number of orders.
How it's worked out
Sales ÷ orders
Revenue grows from more orders or bigger ones. AOV tracks the second: bundles, free delivery thresholds and recommendations are the usual levers.
Read it with margin, since a bigger basket of discounted items can earn less.
In practice
$400,000 of sales from 5,000 orders is an AOV of $80.
Common mistake
Pushing AOV up with thresholds that make people buy things they then return.