How to increase average order value: 10 ways for COD stores
To increase average order value (AOV), you first need to measure it correctly: it’s the average amount of an order, revenue divided by the number of orders over a period. With cash on delivery, it’s one of the metrics that weigh most on profitability, because every parcel costs a delivery and often a confirmation call, whatever its value.
This guide gives the formula, explains why COD stores should measure it on delivered orders, then presents 10 ways to raise it without lowering your delivery rate.
How to calculate average order value
The formula is the same for every store: average order value = revenue for the period ÷ number of orders for the period. A store that takes in 1,700 over 100 orders has an AOV of 17. Always use the same scope (with or without tax and delivery) to compare month to month.
| Measure | Calculation | What it shows |
|---|---|---|
| AOV of orders received | Value of all orders ÷ orders received | The offer’s effect at the moment of ordering |
| AOV of delivered orders | Cash collected ÷ delivered orders | What actually reaches the bank |
| Gap between the two | Compare both | Whether larger orders get refused more often |
Worked example (assumptions): in a month, 400 orders received for EGP 640,000, an AOV received of EGP 1,600. 240 orders are delivered for EGP 360,000, a delivered AOV of EGP 1,500. Refused orders were therefore slightly larger than average: the bundle offer needs a clearer explanation during confirmation.
Why average order value matters so much with COD
A COD order’s cost is largely fixed: delivery, packing, confirmation call, ad cost per order. A higher AOV spreads those costs over more revenue. With 2,000 of fixed costs per parcel, an order of 10,000 leaves 8,000 before product cost; an order of 15,000 leaves 13,000. Check it on your own figures with the margin calculator.
10 ways to increase average order value with COD
- 2- or 3-item bundles with a growing discount: the simplest lever to understand.
- Free delivery from 2 items or from a threshold slightly above your current AOV.
- A complementary product offered in the form, unticked, with its price (see our guide to upselling and cross-selling).
- An upgrade: larger size, fuller version, family pack.
- An offer during the confirmation call: one sentence, the total price, and accept a no.
- A gift set for peak periods (holidays, back to school, Black Friday).
- Tiered pricing clearly shown by quantity.
- Usage bundles: a “complete kit” rather than separate products.
- A restock offer to satisfied customers after delivery, with their consent to be contacted again.
- A clearer product page: customers who understand the offer pick the bundle more often (see how to write product descriptions).
| Need | Free option | Paid option |
|---|---|---|
| Calculate AOV received and delivered | Google SheetsOrder export and pivot table by status. | Microsoft Excel (Microsoft 365)Pivot tables by month and offer. |
| Visualize the trend | Looker StudioFree dashboard connected to Google Sheets. | Power BI ProShared dashboards, paid plan. |
Summary
Average order value is simple to calculate, but with COD you should track it on delivered orders. Bundles, free delivery above a threshold and a useful add-on are the most reliable ways to increase average order value, provided the total is clear and the offer honest. To link AOV to margin, see our guide to COD profitability. Create your ReadyStore store to set up your bundles.
Sources
- Shopify — Average order value (in French) (accessed 21 October 2026)
Frequently asked questions
How do you calculate average order value?
Divide revenue for a period by the number of orders in the same period. For example, 1,700 in sales across 100 orders gives an AOV of 17. Always keep the same scope, with or without delivery and tax, to compare months.
What is a good average order value for ecommerce?
There’s no universal good figure: it depends on your product prices, market and offers. What matters is comparing it with your fixed costs per order, delivery and confirmation, and tracking its trend on delivered orders.
Why does average order value matter for COD?
Because with cash on delivery every parcel costs a delivery and often a call, whatever its value. A higher AOV spreads those fixed costs over more revenue and improves margin per delivered order.
What is the easiest way to increase average order value?
Offer 2- or 3-item bundles with a clear discount, or free delivery from two items. These offers are easy to understand on the phone and on the page, and they share the delivery cost.
Should average order value include delivery?
Both methods exist; what matters is consistency. With COD, many sellers track the total amount collected by the courier, delivery included, because that’s what the customer actually pays. State your choice clearly in your reports.
Related guides
Upsell and cross-sell: definitions and COD store examples
Upsell and cross-sell explained: definitions, differences, examples for a cash on delivery store, bundle offers, the rules to follow and mistakes to avoid.
Read the guideProfitabilityCost per delivered order: measuring real COD profit each week
Cost per delivered order in COD: every cost to count, a weekly review for each product and a simple grid to decide whether to keep, fix or stop a product.
Read the guideSeasonalBlack Friday marketing for COD stores: offers and timeline
Black Friday marketing for cash on delivery stores: a 5-week timeline, bundle offers, compliant strikethrough prices, stock, confirmation and delivery.
Read the guideBundles and upsells
Per-product bundles, discounts, free delivery and complementary products offered inside the order form.
Learn more
You launch the store and the ads. The center does the rest.
Create your ReadyStore store: a short COD form, Meta Pixel and Conversions API, orders and analytics in one place.