Question 1

How do I set the right free shipping threshold?

Accepted Answer

Set your threshold 15-35% above your current AOV. With $58 AOV, try $70-$80. The threshold should feel achievable — customers should only need to add 1-2 items to qualify. Too high and nobody reaches it, too low and you absorb shipping costs without boosting AOV. This calculator compares thresholds at 15%, 25%, and 35% above AOV.

Question 2

Does free shipping increase conversion rate?

Accepted Answer

Yes — studies show free shipping increases conversion rates by 5-15%. Unexpected shipping costs are the #1 reason for cart abandonment (48% of abandoners). Free shipping thresholds also increase AOV by 10-20% as customers add items to qualify. The combined CVR + AOV lift usually more than offsets the shipping cost you absorb.

Question 3

Can I afford to offer free shipping?

Accepted Answer

If your gross profit per order exceeds your average shipping cost, you can afford it. With $58 AOV and 60% margin, you earn $34.80 per order. If shipping costs $7, you still keep $27.80 after absorbing shipping. Factor in the CVR lift (more orders) and AOV lift (bigger orders) — the math usually works if margins are above 40%.

Question 4

Should I offer free shipping on all orders or use a threshold?

Accepted Answer

A threshold is almost always better than blanket free shipping. Blanket free shipping means you absorb shipping on every order including small ones. A threshold encourages customers to add items, increasing AOV. It also gives you a promotional tool ('Only $12 away from free shipping!'). The exception: if your AOV is already high ($150+), blanket free shipping may be simpler.

Question 5

How do I display the free shipping threshold on Shopify?

Accepted Answer

Use a progress bar in the cart showing how close the customer is to free shipping. Apps: Hextom Free Shipping Bar, mProgress Bar, or build it into your theme. Also announce it in the header banner, on product pages, and at checkout. The more visible the threshold, the more customers will add items to reach it. A/B test different threshold amounts.

Threshold	% Above AOV	New AOV	Orders	Revenue	Profit Δ
$70	21%	$63.41	440 (+40)	$27,901	+$863
$75	29%	$64.10	440 (+40)	$28,206	+$1,046
$80Best	38%	$64.80	440 (+40)	$28,511	+$1,229

Free Shipping Threshold Optimizer

Related Tools

Conversion Rate Calculator

AOV Calculator

AOV Upsell Impact Calculator

Cart Abandonment Revenue Calculator