The average order value (AOV) is the average amount spent per customer during a transaction at a point of sale, whether physical or online. It is calculated by dividing the total revenue for a given period by the number of transactions recorded during that same period. Tracking and analyzing changes in the average order value is essential for improving a business’s profitability, often through optimizing the product offering and customer experience. The term can also refer to the typical composition of a shopping cart or order.