What is average order value?
Photo: Avila Ops Tecnologia
Average order value is how much each order is worth on average. Divide period revenue by order count. If R$ 9,000 came from 60 orders, the average is R$ 150. It shows whether customers take more or less per purchase.
Revenue equals visitors multiplied by orders per visitor multiplied by average order value. In most small stores, nearly every customer places one order in the period, so orders per visitor approximate conversion rate. Grow by attracting more people, convincing more or increasing each purchase. The first two cost advertising and time. The third costs almost nothing yet receives little attention.
Why does average order value fall in November?
Photo: Avila Ops Tecnologia
Discounts lower each order’s value. Black Friday customers pay R$ 105 for products normally costing R$ 150. Without sufficient order growth, you work more for the same revenue.
A children’s clothing store averaging R$ 178 and two pieces per order discounted everything 30%. Orders doubled but average value fell to R$ 125. Revenue rose 40% rather than 100%. The conversion rate guide covers the other half of this calculation.
How do you raise order value without discounts?
Start with free shipping slightly above your current average: if R$ 150, free shipping above R$ 199 encourages extra items. First check that average shipping fits margins above that threshold. Then bundles: two compatible products at a set price. Finally, checkout suggestions: inexpensive items complementing the cart.
With customer records tracking previous purchases, suggestions can reflect history and become service.
What to do now
Calculate October’s average and the last seven days’. Avila Ops builds automatically updated dashboards combining order value, conversion and orders: avilaops.com/sistema-para-pequenas-empresas or WhatsApp wa.me/5517997811471.
Frequently asked questions
Does average order value include shipping?
Include it to measure customer spending; exclude it to measure product revenue. Choose one method consistently so monthly comparisons remain valid.
What is a good average order value for small stores?
One covering operations with room left over: product costs, packaging, absorbed shipping and payment fees per order.
Does it apply to services?
Yes. A salon with 200 appointments and R$ 16,000 revenue averages R$ 80. A R$ 10 add-on sold at each appointment generates R$ 2,000, equivalent to 25 new customers.
Connections, made clear
From order to delivery, with every step in view.
An example of connecting E-Commerce with your team’s day-to-day work.
- OrderThe customer chooses items and places an order.
- ValidationCheck the details and product availability.
- ManagementSend the validated order to ERP.
- FulfillmentThe team prepares and dispatches the items.
- CustomerKeep the customer informed about next steps.
- Order. The customer chooses items and places an order.
- Validation. Check the details and product availability.
- Management. Send the validated order to ERP.
- Fulfillment. The team prepares and dispatches the items.
- Customer. Keep the customer informed about next steps.
Order
The customer chooses items and places an order.
Turn what you learned into your next step.
Tell us about your company and what you want to improve. We can explore the right tools, integrations or custom project together.