E-Commerce Business Model
Business models related to the sale of goods, have a slight difference from the transactional model, namely a special variant of the calculation of the average order value (AOV).
In commerce, the average check depends on the number of average item quantity (AIQ) and the average item value (AIV). And it is calculated by the formula AOV = AIV×AIQ.
This approach separates the two processes of improving the overage order value, the first is to increase the prices of the items sold, and the second is to increase the pure items that the customer buys in one basket.
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Unit economics & financial modeling in practice
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