What is average order value
Average order value (AOV) is the monetary revenue that, on average, corresponds to one completed order over a chosen period. Simply put: total revenue divided by the number of orders.
How average order value works
The formula is simple and essential to monitor:
- Average order value = Total revenue / Number of completed orders
Calculation example in KZT: if you earned 2,400,000 KZT in a week from 600 orders, AOV = 2,400,000 / 600 = 4,000 KZT.
It's important to account for adjustments that affect the metric's accuracy:
- Returns and cancellations. Include only net revenue after returns in the calculation, or maintain a parallel metric “AOV excluding returns”.
- Discounts, promo codes and Kaspi cashback. If you give a 10% discount across orders, it reduces AOV in monetary terms but may increase order volume.
- Number of items per order and average price per item. AOV grows either by increasing average item price or by increasing the number of items per order.
Also distinguish AOV from LTV (customer lifetime value). AOV affects how quickly you recoup ad spend, while LTV considers repeat purchases.
Why sellers on Kaspi.kz should monitor average order value
AOV is a key commercial metric because it directly impacts margin, logistics and payback of marketing costs:
- Advertising payback. If you pay to attract traffic—e.g., CPC ads on social media or promoted placements within Kaspi—low AOV increases the payback time. Example: with an average profit of 800 KZT per order and a click cost of 200 KZT, your margin is 800 − 200 = 600 KZT; if AOV falls and profit becomes 400 KZT, payback is jeopardized.
- Logistics and fees impact. Logistics costs and fixed fees per shipment consume a larger share at low AOV. If average logistic cost is 600 KZT, at AOV 3,000 KZT that’s 20% of the order, at AOV 6,000 KZT it’s 10%.
- Raising AOV is a simple and scalable way to grow revenue. Increasing AOV by 15% at the same order count yields 15% more revenue without extra customer acquisition costs.
Kaspi.kz specifics amplify the importance of AOV: cashback and bonus programs, free delivery thresholds, and product recommendation cards. These tools influence buyer behavior and must be factored into any AOV growth plan.
Practical examples and Kaspi.kz seller cases
Below are real‑life situations based on typical seller practice on Kaspi.kz:
- Electronics seller — accessory bundles. A seller of smartphones added bundles with chargers, cases and screen protectors as a single SKU and also as “buy together” suggestions. Average item price rose from 35,000 KZT to 42,000 KZT per order for customers who accepted the bundle, lifting overall AOV by ~12% within a month.
- Housewares — free delivery threshold. A home goods store set a free delivery threshold at 8,000 KZT. Before the change AOV was ~6,200 KZT; after promoting the threshold on product pages and in the cart, many buyers added a small item to reach free delivery, pushing AOV to ~8,300 KZT.
- Clothing — limited sets and upsells. A clothing seller created capsule sets (top + bottom) with a slight bundle discount and showed them in the product card. Conversion to the set was modest, but AOV among buyers who picked sets increased by 25%, with good margin preservation.
- Wrong approach — blanket discounts. One merchant ran a 15% sitewide sale to quickly lift order count. Short term orders rose, but net AOV and margin per order fell, and the campaign didn't pay back when factoring CAC. Lesson: avoid broad discounts that erode margin.
Practical tips to increase average order value (concrete steps)
Below are 12 actionable tactics suitable for Kaspi.kz sellers:
- Cross‑sell in the product card. Show complementary products (chargers, accessories, add‑ons) with clear benefits and prices.
- Upsell to a premium variant. Offer an upgraded model or bundle the better variant with a small discount versus buying separately.
- Product bundles and kits. Create fixed bundles (e.g., camera + memory card) and bundles as separate SKUs to simplify purchase.
- Free delivery threshold. Set a realistic threshold slightly above current AOV to nudge customers to add items to the cart.
- Limited‑time sets. Run time‑limited combo offers to trigger FOMO and increase order value.
- “Buy together” offers in cart. At checkout suggest items often bought together — keep the UX non‑intrusive.
- Tiered discounts. Offer progressive discounts: e.g., −5% over 6,000 KZT, −10% over 10,000 KZT; present them clearly in cart summary.
- Targeted promos for repeat buyers. Use cohorts: offer a special accessory bundle to customers who already bought a main product.
- Highlight savings and margin. Show the customer how much they save by buying a bundle versus items separately.
- Promote high‑margin add‑ons. Prioritize recommending items with good margin so AOV growth doesn’t erode profit.
- Use recommendation cards and Kaspi features. Leverage Kaspi.kz recommendation spots and product cards to surface bundled offers and “people also buy”.
- Test and iterate. A/B test different bundle prices, thresholds and placements; measure AOV, conversion and margin per cohort.
How to measure and control average order value: metrics and tools
To measure and control AOV reliably, track these metrics and use available tools:
- Net revenue and completed orders. In the seller dashboard check total revenue and number of completed orders for the chosen period.
- AOV with and without returns. Keep both metrics: AOV_net (after returns) and AOV_gross (before returns) to understand the effect of reversals.
- AOV by category and SKU. Segment AOV by category, brand and SKU to find where growth opportunities exist.
- Cohort analysis. Compare AOV for first‑time buyers vs returning buyers to optimize promos by segment.
- Link with CAC and margin. Always evaluate AOV together with gross margin per order and cost of acquisition (CAC).
- Reports and tools. Use the Kaspi seller cabinet reports (revenue, returns, promo analytics) and supplement with external BI tools or simple Excel/Google Sheets to correlate AOV with ad spend, campaigns and cohorts.
Practical notes: synchronize dates (order date vs return date), and attribute revenue to the period of the original order when possible. Also track the effect of specific promotions on AOV separately (e.g., AOV during bundle promotion vs baseline).
Conclusion
Average order value is a compact but powerful lever: improving it increases revenue and can improve the payback of marketing spend without necessarily attracting more customers. On Kaspi.kz, account for platform specifics (cashback, free delivery thresholds, recommendation cards) and focus on targeted bundles, upsells and threshold mechanics that preserve margin. Measure AOV carefully, segment by cohorts and SKUs, and always test—this yields sustainable revenue growth.
Часто задаваемые вопросы
- How should returns and discounts be accounted for when calculating average order value?
- Include net revenue in the calculation: revenue minus returns and cancellations for the same period. Discounts, promo codes and cashback should be reflected as the actual amount received, or keep a separate metric “AOV before discounts” for analysis. It’s important to synchronize periods (for example, order date vs return date) to avoid skewing the metric.
- Which tactics on Kaspi.kz give the fastest increase in average order value?
- The quickest effects come from cross‑sell and upsell in the product card and at the cart stage — offer complementary items or upgraded versions. Create bundles and package discounts and set a free delivery threshold to encourage add‑ons. Targeted “buy together” offers and limited‑time kits also work well.
- Which metrics and Kaspi tools should be used to monitor average order value?
- In the seller cabinet check total revenue and number of completed orders for the chosen period, and review reports on returns and promotions. Track AOV by category and SKU, compare customer cohorts and analyze the contribution of advertising campaigns. Additionally use external BI reports to correlate AOV with margin and CAC.
- How does average order value affect the payback of advertising campaigns on marketplaces?
- AOV directly affects how quickly acquisition costs are recouped: all else equal, higher AOV shortens payback time. Look not only at AOV but also at margin per order — if AOV rises because of discounts, payback may not improve. Use the formula: profit per order minus acquisition cost (CAC) and check profitability by channel.
- What mistakes should be avoided when trying to raise average order value with discounts?
- Avoid broad percentage discounts across the entire assortment — they dilute margin and lower perceived price. Prefer growth through bundles, targeted upsells and limited promos on high‑margin items. Always test promotions on segments and calculate campaign margin to avoid devaluing the brand.
