Free tool
What Should Your Free Shipping Threshold Be?
Already have a threshold and want to check if it still meets industry benchmarks? Audit my existing threshold →
Setting a threshold without a benchmark is guesswork. Too low and you're giving away margin. Too high and shoppers don't bother trying. This calculator gives you a number based on what's working for stores in your niche — one you can adjust to fit your margins, your products, and your shipping costs.
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How we calculate your suggested threshold
The suggested threshold is based on benchmarks across eCommerce stores in your niche. The ranges reflect the point where a threshold is high enough to motivate an add-on purchase — but not so high it feels out of reach. Category matters: a fashion store and a pet supply store have very different average basket sizes, and their optimal thresholds reflect that. The editable field exists because your actual shipping costs and margins should have the final say.
Questions
Setting your threshold, answered
What should my free shipping threshold be?
Set it about 15 to 25 percent above your average order value. That is high enough that a typical shopper is just short and adds an item to qualify, but not so high they give up. Your exact number also depends on your niche — fashion, beauty, and pet stores all sit at different basket sizes — and on your shipping costs and margins.
How do I calculate a free shipping threshold?
Start from your average order value and add a margin: a common formula is your AOV plus 15 to 25 percent, rounded to a clean number. Then sanity-check it against your shipping cost and product margin so the extra sales cover the shipping you give away. The finder above does this for your niche.
Is a free shipping threshold worth it for a small store?
Usually yes. Most shoppers will add an item to avoid paying for shipping, so a threshold set just above your AOV tends to lift average order value without giving shipping away on orders that already qualify. The key is setting it above your AOV, not at or below it.
How often should I review my free shipping threshold?
At least once a year, and after any big change to your pricing, product mix, or shipping rates. Average order value drifts over time, and a threshold that was right last year can quietly fall out of the sweet spot.