Lifetimely: Why Your AOV or Net Sales Differs from Shopify

At a glance: Lifetimely and Shopify calculate AOV and net sales using slightly different definitions. Neither is wrong — they're measuring different things, and this article explains exactly why they differ.

The short answer

Lifetimely and Shopify use similar but not identical formulas. The differences are intentional — each platform is optimised for a different purpose. Understanding what each number includes helps you decide which one to reference for a given decision.

AOV: why the numbers differ

Both platforms calculate AOV as sales ÷ number of orders, but the numerator is defined differently.

Platform	AOV formula
Lifetimely	Sales after discount codes, before refunds ÷ orders
Shopify	Gross sales minus discounts ÷ orders (post-creation adjustments excluded)

These are close — both are post-discount, pre-refund — but the following factors can push them apart:

1. Shipping revenue

This is the most common driver. Lifetimely's "sales" figure includes shipping charges in the order total. Shopify's AOV is based on product revenue only. If your orders include shipping charges, Lifetimely's AOV will typically come in higher than Shopify's.

2. Gift cards

Shopify and Lifetimely can treat gift card orders differently — particularly around whether a gift card redemption counts as a separate order or affects the revenue figure. If a significant portion of your orders involve gift cards, this can shift the order count in the denominator or the revenue in the numerator.

3. Refund timing

Lifetimely and Shopify can process refunds on different dates, which may cause a small number of orders to fall in or out of your selected date window differently — particularly near period boundaries.

Net sales: why the numbers differ

Net sales discrepancies follow a similar pattern but are often larger because they compound across more orders.

Platform	What "net sales" typically means
Lifetimely	Gross sales − discounts − refunds (shipping may be included)
Shopify	Gross sales − discounts − returns (recorded on the processing date)

In addition to the shipping and gift card factors above, the biggest driver of net sales discrepancies is usually how refunds are dated. See Lifetimely vs. Shopify Reporting: Understanding Timing in Financial Reports for a full explanation of how each platform handles refund dates.

Which number should I use?

Neither is wrong — they just answer different questions.

Use Lifetimely's figures for profitability analysis, LTV, cohort performance, and day-to-day P&L tracking. These are optimised for business decisions.
Use Shopify's figures when reconciling against Shopify Payments payouts or comparing against Shopify's own reporting tools.

For most merchants, a small consistent gap between the two is expected and not a sign that anything is broken.

When to investigate further

The scenarios above explain expected differences. If the gap is unusually large, growing over time, or only affects certain products or date ranges, it may be worth investigating. In that case, reach out to support with your store URL, the date range you're comparing, and screenshots of both figures — and we'll help identify the root cause.

Worked example: shipping is the culprit

A merchant noticed their Lifetimely AOV was $70 while Shopify showed $65 for the same period. Here's how we broke it down:

From the Lifetimely income statement for that period:

Total orders: 100
Product revenue: $6,700
Shipping revenue: $500
Discounts: $200
Net sales (product + shipping − discounts): $7,000

Lifetimely AOV = $7,000 ÷ 100 = $70 ✓

Shopify AOV (product revenue minus discounts, no shipping) = ($6,700 − $200) ÷ 100 = $6,500 ÷ 100 = $65 ✓

The $5 gap is entirely explained by shipping revenue — $500 across 100 orders = exactly $5.00 per order. Both numbers are correct. They're just measuring different things.

This is the most common pattern: if your Lifetimely AOV is higher than Shopify's, shipping revenue in the order totals is almost always the explanation.