Average order value
Average order value needs an order-level calculation. An import with multiple line items per order must not inflate the order count.
Calculate at order level
Average order value, or AOV, divides the included revenue by the number of corresponding orders. The revenue definition belongs to the metric. Shopify uses original product revenue minus discounts; taxes, shipping and later adjustments are outside that AOV base. This is not an analysis of payments received.
Do not count line items as orders
A fictional reporting import contains these simplified fields. Every row belongs to the same selected period and currency EUR. Amounts apply to the individual line item.
| Product value before discount (EUR) | Discount (EUR) |
|---|---|---|
| 50 | 5 |
| 30 | 5 |
| 120 | 20 |
| 80 | 10 |
Product values total 280 EUR and discounts total 40 EUR. However, there are only 3 distinct orders. The result is (280 - 40) / 3 = 80 EUR. Dividing by the 4 line-item rows would produce 60 EUR and distort the metric.
The import must therefore combine records at order level using orderId and count orders distinctly. When joining to line items, complete order-header amounts must not be summed again for every line item. Numerator and denominator must use the same period, currency and order selection. Without an included order, no average can be calculated.
Sources
Related terms
- Customer retention rateCustomer retention needs a fixed starting group. A SaaS report must count customers distinctly and separate new accounts from reactivated ones.
- Event trackingEvent tracking records selected actions on websites or in apps. A clearly defined trigger explains what a counted event actually establishes.
- UTM parametersUTM parameters label a campaign link with information such as source, medium and campaign.
- Repeat purchase rateRepeat purchase rate is the share of customers who buy again. A report needs an explicit period, customer identity and distinct orders.
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