AOV is how much a typical order is worth. Shopify’s definition is total revenue divided by the number of orders over the same period, with the example of $2,000 of revenue from 100 orders giving an AOV of $20 (Shopify). The number differs a lot by category. Shopify’s guide, citing Dynamic Yield, puts the global AOV at around $145, beauty and personal care in a $15 to $90 range, apparel and accessories at $40 to $170, and luxury and jewelry often above $300 (Shopify).
For commission UGC, AOV decides whether a percentage is worth anything. Commission per order equals AOV times the rate.
Example. A supplement brand with a $40 AOV offers 15 % of sales. Each order pays the creator $6. To earn $300 the creator’s content has to bring 50 orders. A furniture brand with a $400 AOV offering 5 % pays $20 per order; the same $300 takes 15 orders. Example numbers, not a benchmark.
When brands use it. The pain this answers: “Why add to my CPA when I can just pay $200-300 a video?” Brands with a low AOV often pair a smaller percentage with a fixed amount per order, or with a per-video base, because a bare percentage looks small to creators. Brands with a high AOV can offer a low percentage that still pays well per order. Bundles, free-shipping thresholds and subscriptions all raise AOV and therefore the value of every commission deal.
The creator’s view. Ask for the AOV before agreeing to a rate. A 20 % rate on a $25 product is $5 an order. A 5 % rate on a $300 product is $15 an order. A creator should also ask whether the brand’s discount code lowers the base, since a 20 % off code on a $40 cart means the commission is computed on $32.