Why should you even bother with a free shipping threshold?

You know how annoying it is when you’re about to check out, and suddenly—boom—there’s a $6.99 shipping fee? That moment makes a lot of people abandon their carts. Offering free shipping removes that friction, so more people complete their purchases.

But here’s the catch: you don’t want to lose money by covering shipping costs on every single order. That’s where a free shipping threshold comes in—you set a minimum order value where shipping is free, encouraging people to spend more while keeping your margins intact.

Stores that clearly show their free shipping threshold at checkout tend to see higher average order values (AOV) and better cart conversions. In fact, 58% of shoppers say they’ve added more items to their cart just to qualify for free shipping.

Obvi, a health supplement brand, does this brilliantly:

“Individual products are priced at $50. But our free shipping threshold for collagen isn’t $50. It’s $65. Not only does this encourage higher cart values and better margins, but it pushes shoppers to buy (at least) a 2-month supply of the product. In our messaging, we let customers know that 2 months is how long it takes to start seeing real impact from taking our collagen.” says Ronak Shah, CEO, Obvi

That’s how you convert cart abandons due to shipping charges into higher AOV.

 

How to calculate the right free shipping threshold for your store?

Think of it like this: you want customers to spend more, but you also want to ensure their extra spending covers your shipping costs. Here’s a simple way to get there:

1. Look at your Average Order Value (AOV)

This is the average amount customers spend per order. If your AOV is, say, $45, you don’t want to offer free shipping at $40 (because people will actually spend less). Instead, you want them to increase their order size—so your threshold should be above your AOV.

2. Check your shipping costs

Let’s say your average shipping cost is $7 per order. That means you need to ensure whatever extra people spend covers at least this amount.

3. Pick a number that nudges people to buy more

A good rule of thumb: set your free shipping threshold 20–30% above your AOV.

So, if your AOV is $45, try offering free shipping at $60. That way, customers are likely to add an extra item instead of paying for shipping, increasing your revenue per order.

But remember, every business is different. The best way to arrive at this number is to deeply understand your customers’ buying behavior – would they like to buy 2 products at the same time? Are there quick add-ons that you can upsell?

Test and optimize!

 

Ways to apply free shipping thresholds

Not every store works the same way, but these are the 2 most common ways to apply free shipping thresholds:

• By Cart Value: The most common method—free shipping on orders above a certain amount (e.g., “Free shipping over $60”).

• By Number of Items: Some brands set free shipping based on how many items are in the cart (e.g., “Buy 3 items, get free shipping”).

Showing above: ConvertWise’s customizable free shipping bar; see this in action.

Also, some products may be better off excluded from free shipping. For instance, if you sell heavy or bulky items (furniture, gym equipment), it often doesn’t make sense to offer free shipping. Having control over when and how free shipping appears is useful, especially if you want to test different strategies and see what works best for your store.

 

But does this actually work?

Yep. People hate paying for shipping, but they don’t mind spending a little more if they get something in return. That’s why you often see customers adding a small extra item to qualify for free shipping—it feels like they’re getting a better deal.

And stores that get this right; see pretty cool results. For instance:

• Convertica tested this with stores and found that just showing customers how close they are to free shipping led to 88.3% more completed orders and a 175.4% boost in revenue per visitor.

• Intelligems helped a CPG brand tweak its threshold, leading to 6.3% more units per order and a 6.5% jump in AOV.

 

Bonus tips: Make it obvious

Once you set your free shipping threshold, don’t make customers do the math. Show them:

• “You’re $10 away from free shipping!” (inside the cart)

• A progress bar or notification nudging them to add more items

• Personalized product recommendations inside the cart to help them reach the threshold

If you get this right, you’ll increase both conversions and average order value—without eating into your margins too much.

Some of the stores using ConvertWise have seen up to 15% higher AOV and 30% higher cart conversions after showing free shipping progress bars and dynamic upsell recommendations inside the cart.

When shoppers clearly see how close they are to unlocking free shipping, they’re more likely to add just one more item instead of dropping off.

 

Wrapping up

Free shipping isn’t about “being nice.” It’s a strategy to get customers to spend more while making checkout frictionless. Do the math, set your threshold smartly, and watch your revenue grow.

Want to test free shipping in your cart right away?