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← Insights Profit · October 2026 · 5 min read

How to set your free shipping threshold

Set it too low and you give away margin. Set it too high and nobody reaches it. The right threshold sits just above where most of your orders land.

Quick answer

Set your free shipping threshold about 15 to 30% above your current average order value, ideally just above the price of your best-selling single product, so customers need one small add-on to qualify. Show progress toward it in the cart and offer a one-tap add-on that gets them over the line.

Step 1: look at your order distribution

Group your orders by value. Many stores find a cluster just under the threshold, usually one hero product on its own.

Step 2: price the gap

If your hero product is $45 and your threshold is $60, you need a $15 to $25 add-on. If you don't have one, create a mini, sample or accessory.

Step 3: check the maths

Without nudgeWith nudge
Order$45 + $9 shipping$45 + $20 add-on, free shipping
Revenue$54$65
Extra marginAdd-on margin minus shipping you now cover

Step 4: show it everywhere

Announcement bar, product page and a progress bar in the cart drawer: "You're $15 away from free shipping."

Free tool

Free shipping and AOV calculator

Run your numbers

Frequently asked questions

Should free shipping be on every order?

Only if your margins can absorb it. Most brands do better with a threshold that encourages a second item.

What threshold works for a $40 product?

Often $55 to $65, paired with a $15 to $25 add-on.

Does free shipping improve conversion?

Clear, early shipping information reduces cart abandonment. Surprise shipping costs at checkout are a common reason people leave.

Written by Shimeez Bok, founder of Growth Alchemy, an ecommerce growth studio in Auckland, New Zealand.

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