Common Questions
Frequently Asked Questions
What is the best free shipping threshold for ecommerce?
The most common rule of thumb is 30% above your current average order value (AOV). For example, if your AOV is $65, a threshold around $85 captures the customers willing to add one or two items without pushing so high that conversion drops. The actual best number depends on your margin, shipping cost, and how price-sensitive your customers are - which is what this calculator helps you find.
How does a free shipping threshold lift AOV?
Customers approaching the threshold add small items to qualify for free shipping. Studies have repeatedly shown that "free shipping" is one of the strongest psychological levers in ecommerce, often outperforming an equivalent dollar discount. The catch is that not every customer plays along, and the threshold has to be calibrated to your margin or you give away more than you gain.
How much should I charge for shipping below the threshold?
Charge enough to recover your real shipping cost on those orders, but not so much that it tanks conversion. A common pattern is to charge a flat rate equal to your average shipping cost plus a small handling buffer. This keeps small orders from becoming loss leaders while leaving the threshold as a clear upgrade path.
Why does take rate matter for free shipping calculations?
Take rate is the share of customers who actually push their order up to qualify. Setting a $100 threshold sounds great in theory, but if only 5% of customers play along, you give free shipping to 5% and gain almost nothing in AOV. A realistic take rate (usually 30-50%) is the most important variable in the math.
Will a free shipping threshold hurt my conversion rate?
It can, especially if the gap between the threshold and your AOV is large. Customers shopping at $40 may abandon a cart that demands $100 for free shipping. Always measure profit per session (not just AOV) when testing a new threshold, because lift in AOV can be wiped out by a drop in conversion.
Should I use tiered shipping instead of a single threshold?
Often yes. A tiered model like "$5 off shipping at $50, free shipping at $85" captures a wider slice of the demand curve. It rewards small upgrades without forcing every customer to clear the same bar. Tiered shipping is more complex to communicate but typically beats a single threshold on profit per session.