What Is AOP (Average Order Profit) in Print-on-Demand?

If you’re new to profit metrics, check out our guide on AOV (Average Order Value) first, since AOV is the foundation for calculating AOP. Or, if you’d rather not crunch spreadsheets, you can track AOP automatically with PodVector. For a general background, see Investopedia’s profit definition.

Definition of AOP

AOP stands for Average Order Profit. It represents the average profit you make per order after all variable costs are deducted. Unlike gross profit, which only subtracts product cost, AOP accounts for:

• COGS (Cost of Goods Sold): Base product + printing costs
• Shipping fees: Domestic and international fulfillment
• Ad spend per order: Marketing costs allocated per purchase
• Payment fees: Shopify, Stripe, PayPal, or other processing fees
• Refunds/chargebacks: Average losses per order

This makes AOP one of the most practical and realistic metrics for POD profitability.

Formula for AOP

The formula for AOP is:

AOP = AOV – (COGS per order + Shipping per order + Ad Spend per order + Payment Fees + Refund allocation)

Where:

• AOV: Average revenue per order
• COGS: Average base + printing costs
• Refund allocation: The per-order impact of refunds and chargebacks

Example Calculation

Suppose you sell print-on-demand t-shirts with the following averages:

• AOV: $30
• COGS: $12
• Shipping: $4
• Ad spend per order: $8
• Payment fees: $1.20
• Refund allocation: $0.50

AOP = $30 – ($12 + $4 + $8 + $1.20 + $0.50) = $4.30

This means your store keeps $4.30 in profit per order, on average.

Why AOP Matters in POD

• Product-level truth: Reveals which products are profitable once all costs are included.
• Marketing control: Ensures ad spend per order doesn’t exceed profit potential.
• Cash flow safety: Helps you understand how much cash remains per order after payouts and fees.
• Pricing accuracy: Shows if your price point leaves enough room for growth and reinvestment.

In short, AOP prevents the classic mistake of thinking “sales = profit.” It grounds you in reality.

Benchmarks: What’s a Good AOP?

• $0–$3 per order: Dangerous zone. One refund or ad spike can erase all profit.
• $4–$8 per order: Sustainable for low-ticket items like shirts and mugs.
• $10+ per order: Healthy margin, often seen in higher-ticket items (hoodies, wall art, bundles).

Tip: You should aim for a minimum AOP of $4–$5 just to cover unexpected swings. More is better.

How to Track AOP (Manual vs Automated)

Manual (Spreadsheets)

1. Export Shopify orders.
2. Calculate AOV (revenue ÷ orders).
3. Subtract COGS, shipping, ad spend, and fees per order.
4. Track refund allocation by dividing total refunds by order count.
5. Update weekly or monthly for accuracy.

Automated (PodVector)

With PodVector, AOP is calculated in real time. The app pulls in Shopify revenue, Printify/Printful COGS, shipping, refunds, and ad spend. Instead of hours in spreadsheets, you’ll see live AOP per product, per campaign, or across your whole store.

How AOP Relates to Other Metrics

• AOP vs AOV: AOV shows revenue per order, AOP shows profit per order.
• AOP vs AOP Margin: AOP is the dollar amount, AOP Margin is the percentage of revenue that remains as profit.
• AOP vs Operating Profit: AOP is order-level, while operating profit looks at the whole business.

FAQs

Is AOP the same as net profit?

No. AOP is per order. Net profit looks at your entire business after all expenses, including overhead.

What’s a good AOP in POD?

At least $4–$5 per order, with $10+ per order being ideal for long-term growth.

Does PodVector track AOP automatically?

Yes. PodVector calculates AOP across all your orders in real time, including ad spend, refunds, and fees.

Why not just track sales or gross profit?

Because sales and gross profit ignore costs like ads, refunds, and payment fees. AOP shows the truth.