Why are there two average order values?

Because one shows what customers paid per order, and the other shows what each order left you. AOV means average order value. Gross AOV is Gross Revenue divided by Gross Orders. It includes VAT and shipping, before any refunds. Net AOV is Net Revenue divided by Net Orders. That is the figure every margin uses.

Here is an example at 19% VAT with no returns. Every order is €119,00 with VAT. Gross AOV is then €119,00, and Net AOV is €100,00.

Use Gross AOV for anything a customer sees. That means a free-shipping threshold, a basket goal or a discount that starts above a certain value. Customers see prices with VAT at checkout, so compare against that. Use Net AOV for anything about the money you keep. That means what an order can afford in ads, or what a fulfilment contract costs per order.

The gap between the two is about your VAT rate plus your return rate. More returns move Net AOV, while Gross AOV stays put. Mixing the two up is a common way to get cost percentages that look too good to be true.

For ads, Net AOV times your CM2 % is what an average order leaves before marketing. That is the most you can spend to win the order and still break even. On the P&L, Gross AOV and Net AOV are lines 9 and 16. Insights, Revenue shows how the average order is built. The free-shipping threshold calculator works with Gross AOV.