Creative & Offers
Free shipping threshold: how should Shopify stores set it?
A useful free-shipping threshold encourages a larger basket without making the goal feel unreachable.
Start with current AOV
If AOV is $62, a threshold at $65 may give customers little reason to add meaningful value. A threshold at $150 may feel irrelevant.
A common starting hypothesis is modestly above current AOV, but economics decide the exact number.
Calculate margin on the larger basket
Suppose moving an order from $60 to $80 adds $10 contribution after product cost, while shipping costs $7. The threshold can pay for itself. The full worked calculation is in how to calculate a profitable free shipping threshold.
If the extra item has very low margin or shipping becomes much more expensive with weight, the calculation changes.
Make it visible
Show progress in cart: "$12 away from free shipping." The customer should not discover the threshold only during checkout.
Segment markets
International shipping costs can make one global threshold impossible. Use market-specific rules where appropriate.
The threshold should increase contribution per order, not merely AOV.
Build a threshold from your real numbers, not a guess
If you want a free-shipping threshold built from your actual AOV, margin and shipping cost, send us an inquiry.