Average Abandonment Order Value on website is the average value of products left unpurchased in online shoppers’ carts.
The Average Abandonment Order Value on Website is a crucial e-commerce metric that quantifies the average worth of items left behind in shopping carts on an e-commerce website. This metric doesn't include items bought and paid for; only the abandoned products are considered. A high AAOV provides insights into potential lost revenue and can signify various issues, from high shipping costs, complex checkout procedures or ineffective retargeting strategies.
Average Abandonment Order Value on Website AAOV = Total Value of Abandoned Carts / Number of Abandoned Carts
Several factors can increase your Average Abandonment Order Value on Website AAOV including high shipping costs, lack of payment options, mandatory account creation before checkout, and website navigation difficulties.
There is a direct correlation between Average Abandonment Order Value on Website AAOV and other e-commerce metrics like conversion rates, customer lifetime value, and shopping cart abandonment rate. Reduced AAOV often results in a higher conversion rate and customer lifetime value. Also, a high shopping cart abandonment rate tends to coincide with a high AAOV.