· Salih · Conversion
How to set your free shipping threshold, step by step
Base your threshold on your average order value and margins, not a guess. A simple method, a worked example and how to test it.
Free shipping is one of the strongest reasons for a shopper to add one more item. But set the threshold wrong and either nobody reaches it, or you pay shipping on orders that would have been that size anyway. Here's how to pick it from your own data.
1. Find your average order value
Shopify admin shows your average order value (AOV) under Analytics. Use the last 90 days, and look at campaign weeks separately if they inflate the average.
Also look at how order totals are distributed. If most orders cluster in a range, a threshold just above that range pushes the most shoppers into the "almost there" zone.
2. Put the threshold slightly above the average
A common starting point is 15–30% above your AOV, so a typical shopper can reach it with one more item.
Example: with an AOV of $80, a threshold around $95–100 is a sensible start. A far-off threshold such as $150 feels unreachable to most shoppers and doesn't change behavior.
3. Check your margins
Before committing, ask: is an order right at the threshold still profitable after you absorb shipping?
- Work out your average shipping cost, including weight and zone differences.
- Subtract it from the gross profit of an order at the threshold.
- If the result is negative, raise the threshold or offer free shipping only for certain zones or products.
4. Make the threshold visible
A threshold nobody knows about might as well not exist. Show the remaining amount in the announcement bar, on the cart page and in the cart drawer. A concrete "You're $12 away from free shipping" works better than a generic "Free shipping over $100".
Suggesting affordable add-ons to shoppers who are close to the goal makes it even easier to get there.
5. Measure and adjust
After a change, watch these for at least 2–4 weeks:
- Average order value
- Conversion rate (it can drop if the threshold is too high)
- Share of orders above the threshold
- Shipping cost per order
Move in small steps rather than big jumps, and compare against similar periods, since seasonality can skew results.
Quick recap
- Pull the last 90 days of AOV and the order value distribution.
- Set the threshold 15–30% above the average.
- Confirm an order at the threshold is still profitable after shipping.
- Show the remaining amount in the cart and cart drawer.
- Measure for a few weeks and adjust in small steps.
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