There is an average of three numbers $x,y,z$ that involves multiplying them, but $\frac{xyz}{3}$ is not it. An average of three values should have the same units as those values; if $x,y,z$ were measured in meters, then $\frac{xyz}{3}$ would be measured in cubic meters. The correct operation to apply after multiplying three numbers to take an average is to take the cube root. $\sqrt[3]{xyz}$ is an average of three numbers known as the geometric mean.
If you are computing $\frac{\text{length} \cdot \text{width} \cdot \text{height}}{3}$, you are probably not computing the volume of a cube, but of a pyramid with a rectangular base. However, the geometric mean of length, width, and height does have a geometric meaning. If we have a rectangular prism that's $x$ by $y$ by $z$, then its volume is the same as the volume of a cube with side length $s = \sqrt[3]{xyz}$, so in this sense $s$ is the "average side length" of the rectangular prism.