Order size and customer value are different measures.
Average order value divides net order revenue by completed orders. AOV describes a transaction, while revenue per customer also depends on purchase frequency. A higher AOV can coexist with lower customer lifetime value if repeat purchases weaken.
Align refunds, shipping treatment, taxes and order status with your reporting policy. Comparing gross booked orders with net recognized revenue creates a denominator mismatch.
The formula, made clear.
- Net order revenue
- Revenue from the included orders after discounts and returns.
- Completed orders
- The matching transaction count, not distinct customers.
Put the numbers in context.
$150,000.00 net revenue from 2,500 orders gives $60.00 per order.
| Input | Example value |
|---|---|
| Net order revenue | $150,000.00 |
| Completed orders | 2,500 orders |
| Average net order value | $60.00 |
What this calculation assumes
One consistent measurement period and order definition. This average does not reveal the distribution, margin, customer acquisition cost or repeat-purchase rate.
What to consider next.
Combine order value with contribution margin and purchase frequency before estimating customer economics.
How we approach financial models →