I was reviewing one of the accounts recently and noticed something interesting. The number of orders had gone up compared to last year, but total sales were actually lower. The reason? A drop in AOV.

AOV is simply the average amount a customer spends per order. If AOV goes down even a higher number of orders might not bring in more revenue. That is why it’s important to focus not just on increasing orders but also on getting customers to spend more per purchase.

Why does AOV matter?
1. If customers spend more total sales grow faster.
2. When customers spend more per order, the cost of acquiring them remains same, leading to higher profits.
3. Customers who make larger purchases tend to be more loyal and bring greater long term value in future.

How to increase AOV?
1. You can create bundle or offer related items together to increase the total order value.
2. You can showcase your high AOV products or on low ASP ASINs.
3. You can try running discounts on your higher AOV products to test them whether they are getting sold or not.