“Built to Scale” eCommerce Show

Why You Should Choose AOV Over Profit Margin to Scale Your eCom Business

April 7, 2021

A bigger profit margin may lead you to hit the ceiling, but there are situations where it becomes a secondary metric. You must not forget the importance of AOV (average order value).

Today we’ll be talking about the situations in which a higher AOV is more important than profit margin, and how you can leverage this knowledge to improve both metrics.

On this episode:

  • A client’s experience as an example in comparing profit margin and AOV.
  • Comparing and contrasting two cases with differing profit margins and AOVs.
  • When it’s better to have a higher AOV.
  • Why having a higher AOV allows greater room for error.
  • Ways to increase AOV such as bundling.
  • The option of testing and targeting new audiences when scaling.
  • How can having a higher AOV helps to cover your fixed fees?
  • Reasons why a higher AOV can help you become more profitable as your business scales.
  • Specific situations when AOV becomes especially important.
  • What AOV you should be aiming for in your business.


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