AOV is computed as gross revenue / orders over a defined period, but the numerator deserves scrutiny: pre- or post-discount, pre- or post-shipping, gross or net of returns. Each choice produces a materially different number, and dashboards that compare AOV across periods without holding the definition constant are comparing different metrics.
What moves AOV matters more than the headline. The same 10% lift can come from product mix shift, a sitewide promo, or a bundle launch — three drivers with opposite margin implications. Basket-building tactics (cross-sell, upsell, bundles, free-shipping thresholds) inflate AOV at roughly preserved margin; promo-led lifts compress it. Read the driver before reading the move.
AOV is an order-level metric, not a customer-level one. It feeds LTV alongside order frequency and margin, but a one-off basket-inflation tactic rarely compounds into lifetime value. Segment AOV by new vs. returning customer, by channel, and by promo state — the blended number hides almost everything operationally useful.