Average order value in ecommerce: tracking it by channel
The short answer
Twelve monthly figures per channel show which way average order value in ecommerce and in store is moving. Divide each channel's revenue by its order count every month, then compare the latest three months with the same months a year earlier. Split any change into units per order, price per unit and customer mix to see what drives it.
Average order value by channel, month by month
Why it matters
A rising average order value can come from healthier baskets or from price rises that quietly cost you customers. Knowing which channel is moving, and why, tells you whether to celebrate the number or dig into it ahead of a drop in order counts.
The question to ask
Copy this into Lexi as written.
How to work it out
1. Calculate monthly AOV by channel. Divide revenue after discounts and returns by order count for online, store and click and collect, each month for a year.
2. Compare like months. Set the latest three months against the same three months a year earlier, to remove seasonal swings.
3. Split the drivers. Break each channel's change into units per order, average price per unit and the mix of new and repeat customers.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a toy retailer. It calculates average order value (AOV) by channel for July to September against last year.
- Online: $68.85, up from $62.10
- Store: $44.86, down from $45.20
- Click and collect: $88.00, up from $81.40
What the data shows
Online AOV is up 11%, but units per order are flat and online orders are down 6%.
What it means
The rise comes from a shift toward bigger building sets, and from a smaller customer mix. New online customers fell while repeat customers, who place larger orders, held steady.
What to do
Treat the AOV rise as a mix effect and look at new customer acquisition online.
Would you like AOV split by new and repeat customers for each channel?
Frequently asked questions
Should average order value include returns and discounts?
Report it after discounts and returns for finance, since that reflects what you keep. A gross AOV is useful for merchandising, because it shows what customers put in the basket at checkout. Label which version each report uses, because the gap between them grows in periods with heavy discounting or high returns.
Why can average order value rise while revenue falls?
AOV only measures the size of each order. If price rises push lower-spending customers away, the orders that remain are larger but fewer, and total revenue drops. Read AOV with order count and active customers, so a higher average does not hide a shrinking base.
Why is store average order value often lower than online?
Store visits include quick top-up purchases that would never justify a delivery charge, while online orders tend to be planned and sized to reach free shipping. Compare each channel against its own trend, and look at click and collect separately, since it mixes online planning with store convenience.