Average Transaction Value (ATV) is a key ecommerce metric that represents the average amount a customer spends per transaction. It helps you understand purchasing behavior and revenue potential per order.
ATV is calculated by dividing total revenue by the number of completed transactions over a set time period.
If your store earns $50,000 from 1,000 transactions in a month, your ATV is $50. This means, on average, each customer spent $50 per order.
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A good ATV depends on your business type and product pricing. If your ATV grows steadily while maintaining conversion rates, it’s a strong sign that your upselling or pricing strategies are working.
A declining or stagnant ATV may indicate pricing issues, missed upsell opportunities, or customer hesitancy to add more to their cart.
Encourage customers to buy more by grouping related items together at a discounted bundle price.
Suggest complementary or premium products on product pages and during checkout to increase the value of each cart.
Motivate larger purchases by offering free shipping on orders over a certain amount.
