Does AOV Actually Matter?

AOV is either the most overrated or underrated metric in ecommerce, depending on who you ask.

So I'm here to answer the question once and for all: does AOV even really matter?

It depends. Let me explain.

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The Andrew Faris Podcast is now available on ⁠⁠⁠⁠⁠⁠⁠YouTube⁠⁠⁠⁠⁠⁠⁠ at www.youtube.com/@andrewfarispodcast.

EPISODE HIGHLIGHTS

• [00:02:11] AOV is not necessarily as good as you think.
• [00:03:58] Increasing AOV and conversion rate.
• [00:08:00] Low AOV + large market.
• [00:11:39] Slow purchase accumulation.
• [00:14:41] Nonlinear trade-off between AOV and conversion rate.
• [00:16:09] AOV and shipping efficiency.
• [00:20:00] AOV and gross margin.
• [00:22:13] AOV and profit considerations.

EPISODE SPONSOR

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REFERENCED IN THIS EPISODE:

• "Bryan Porter Didn't Get To $100M On Amazon With Just Tips & Tricks" (Spotify, Apple)

FOLLOW UP WITH ANDREW

• Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠
• Email Andrew: podcast@ajfgrowth.com
• Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

EPISODE MUSIC

• Music Intro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means
• Music Outro: "⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠" by The Devious Means