Free Average Order Value Growth calculator with clear step-by-step results.
Prices the business case for raising average order value. Because order volume is held constant, every dollar of AOV growth flows straight through to revenue and - after gross margin - to profit, which is what makes upsell and bundling work so much harder than equivalent traffic growth.
AOV growth
Growth % = (target AOV - current AOV) / current AOV x 100
Profit uplift
Monthly profit uplift = (target AOV - current AOV) x orders x gross margin
To isolate the AOV effect. In practice raising prices can reduce conversion, so re-run it with a lower order count to test how much volume loss the increase can absorb.
Usually a little more in picking and shipping weight, but far less than proportionally. Using gross margin rather than net keeps that fulfilment drag out of the headline.