The average order value tracks the average dollar amount spent each time a customer places an order with a business. To calculate a business's average order value, simply divide total revenue generated from all sales by the total number of orders.
For example, let’s say in one full year, a business's sales totaled $500,000 and it had a total of 1,000 orders. $500,000 divided by 1,000 = $500, so the business's average order value for that year is $500.