What is average order value?
Average order value, AOV, is what a customer spends in one order on average: revenue divided by orders. $108,000 over 1,200 orders is $90.
AOV = revenue ÷ orders
Use net revenue, after discounts and refunds, and include what customers paid for shipping, because that is money that arrived with the order. Shopify reports the figure directly; this page exists for what comes next.
There are three ways to grow a store: more customers, more orders per customer, or more per order. Most growth plans attack the first number, because it is the one the ad platforms sell, and the price of a new customer rises every year. The third number is the one nobody is bidding against you for. A customer who has already arrived, already trusts you and already has a card out is the cheapest person in the world to sell one more thing to.
The basket, the lift, and what it is worth
Three steps, each worked through on the calculator’s example: $108,000 a month over 1,200 orders, 50% margin per order, a $100 target.
The lift
Enter the average order you think an offer could reach and the calculator holds your order count still and moves only the basket. The lift is the gap as a share of today’s basket, and it is the number to judge an offer by: a free-shipping threshold or an upsell alone usually moves it 5–10%; a threshold plus a bundle can move it more.
Lift = (target AOV − AOV) ÷ AOV
Example($100 − $90) ÷ $90 = an 11.1% lift.
What it is worth
Across the same orders, the extra basket is revenue that arrives with no extra traffic, no extra ad spend and no extra customers to win. Apply your margin per order and you have the part that lands as profit.
Extra revenue = orders × (target AOV − AOV)
Example1,200 × $10 = $12,000 a month, $144,000 a year, about $6,000 a month of it profit.
Equivalent orders
The lift translated into the language of the ad account: the orders you would have to win at today’s basket to add the same revenue. Winning them through ads at a typical cost per order is not cheap, and put side by side the free-shipping threshold often beats the budget increase.
Equivalent orders = extra revenue ÷ AOV
Example$12,000 ÷ $90 = 133 more orders a month, for nothing.
It is also better than it looks, because the costs of an order do not scale with the basket. One parcel, one pick and pack, one acquisition cost: nearly everything an order costs you is paid by the first item, and the second item rides for the price of its goods. A $10 lift in AOV on a store with a 50% margin is usually worth more like $6 or $7 of profit per order, not $5, and over a year of orders that gap is a salary.
Average order value benchmarks for 2026
What baskets look like, in Australia and by category, so you can tell whether yours is small for what you sell.
| Australian online shoppers | Average basket |
|---|---|
| 2020 | $106 |
| 2025 | $96 |
| April to June 2026 | $90 |
Australians are buying more often and spending less each time: the average household bought from 16 brands in 2025 and made four more purchases than the year before, while the basket fell $10 in five years. Every one of those smaller orders carries a full parcel and a full click. By category, in Australian dollars, from the same CommBank iQ card data:
| Category | Average basket |
|---|---|
| Home & garden | $287 |
| Hobbies & recreational goods | $175 |
| Footwear | $154 |
| Pet products | $121 |
| Liquor | $120 |
| Beauty | $114 |
| Women’s fashion | $110 |
| Health & wellness | $107 |
| Consumer electronics | $107 |
| Food & grocery | $105 |
| Department stores | $103 |
| Online marketplaces | $56 |
| Books, stationery & multimedia | $48 |
| All online shopping | $96 |
Home & garden baskets are nearly three times the national average, and marketplaces ($56) and books ($48) drag it down, so judge your basket against your own category, not the $96. On the levers: 81% of US shoppers say they will spend more to reach a free-shipping threshold, 40% of US shoppers who abandon a checkout blame extra costs, and a one-click post-purchase upsell is accepted about 5% of the time and lifted AOV 5.6% on average.
How to increase your average order value
Seven levers, roughly in the order they pay off. Each is a small change to the store that compounds across every order, for as long as it runs. In the example every $1 on the basket is worth $600 a month in profit.
1.Set a free-shipping threshold just above the basket
The most reliable lever there is. Place it 15–25% above today’s average, about $110 in the example, so adding one small item gets a customer over it, and show it on the product page and in the cart. Check the shipping you are now giving away against the margin on the extra item on the profit margin calculator first.
2.Sell bundles
A bundle sells the second product to the person who came for the first, and the second and third items share one parcel and one click. Price it on its own margin, not the headline discount, and lead the range with it.
3.Offer a one-click upsell after the purchase
The customer has just paid and their resistance is at its lowest. A post-purchase offer is accepted about 5% of the time and lifted stores’ AOV 5.6% on average, for no extra traffic and no extra checkout friction.
4.Tier the price for a second unit
“Buy two, save 15%” gives up a little margin on item two to win a sale that was never going to happen, and the second unit rides in the same box. The discount calculator shows the lift the tier needs and the deepest cut it can carry.
5.Cross-sell in the cart, not the inbox
The item that goes with what is already in the basket, shown at the moment the basket is open, with the threshold progress bar next to it. Recommendations after the purchase are retention; recommendations in the cart are AOV.
6.Sell the set in the ads
When the creative sells the set rather than the single, the basket is bigger before the customer reaches the site, and the conversion rate holds because the ad and the page agree. That is a creative decision as much as a merchandising one, and one Ad Creatives makes deliberately.
7.Put a floor under discounts
“20% off over $120” lifts the basket while it discounts, where a flat 20% only lowers the price. A bigger basket also moves the ad numbers: it lowers the ROAS the ads need to break even and raises the revenue each session is worth. The ROAS calculator shows the first of those directly.