Short version: AOV, or average order value, is the average amount of revenue generated by one order.
The common formula is total revenue divided by the number of orders in the same period. If a store makes 10,000 EUR from 200 orders, the AOV is 50 EUR. It is a useful e-commerce metric because it shows how much each completed purchase is worth on average, which affects media budgets, profitability, upsell strategy, and the economics of a checkout flow.
AOV should not be read alone. A few unusually large orders can pull the average upward, while discounting can increase order count but reduce margin. It is often smarter to compare AOV with conversion rate, gross margin, customer acquisition cost, repeat purchase behavior, and median order value. The business question is not only whether people spend more, but whether the extra revenue is profitable and sustainable.
Related terms: cart, checkout flow, and conversion rate.