Acme Watches made $84,000 from 1,050 orders last month, an AOV of 84,000 / 1,050 = $80. After adding a strap bundle and a free-shipping threshold at $100, the next month brings $97,500 from 1,100 orders, an AOV of $88.64. With similar costs per order, the brand can now pay more per purchase and still profit.

AOV is the top half of break-even and target ROAS. A higher AOV lifts what you can spend per order, which lets you win auctions competitors cannot afford. It also explains ROAS moves that have nothing to do with creative: a promotion that pushes cheap items can lower ROAS even when the ads are working.

Bundles, volume breaks, a free-shipping threshold set a little above current AOV and post-purchase offers are the usual levers. In ads, feature the sets and higher-priced variants you want to sell, and check order value by ad, not only for the store, since some creatives pull bigger baskets.