Free shipping is a promotion, not a cost center
Shoppers consistently rank free shipping as their top purchase incentive. The mistake is treating it as a flat cost instead of a lever you can tune.
Setting the right threshold
The ideal free shipping threshold sits just above your current average order value, typically 15-25% higher. This nudges shoppers to add one more item to qualify.
Show progress
A progress bar ("You are $12 away from free shipping") reliably increases units per order. Make the goal visible in the cart and at checkout.
Common mistakes
- Setting the threshold too low, so you give away shipping you would have gotten anyway.
- Setting it too high, so it feels unreachable and shoppers abandon.
- Forgetting to exclude already-discounted orders, which compounds your giveaway.
Bringing it together
Pair a smart threshold with volume discounts and you create two reasons to add more to the cart.
Related on Discount Prime: Free shipping · Profit analytics