Free shipping is one of the most popular incentives that online stores can offer their customers. It’s a great way to increase average order value (AOV) and boost customer retention rates. But finding the perfect free shipping threshold for your store can be tricky. What amount should the threshold be and what factors should be considered?
What is free shipping threshold?
Free shipping threshold is the total amount of money a customer has to spend on eligible items in order to get free shipping from a store. It can vary from store to store, and even from country to country.
“Every customer appreciates free shipping!”
Allie Giuliano, RETENTIONX Expert
In general, they are calculated based on the average order value (AOV) of a store’s customers. To find out what the threshold is for a particular store, you can use a calculator. There are many useful tools for determining how much you need to spend to get free shipping.
The importance of free shipping threshold
As a business owner, it’s important to offers free shipping to your customers whenever possible. Free shipping is a great way to encourage customers to buy from your store, and it can also help to improve your bottom line.
However, free shipping is only effective if you set the right threshold for your business. It is the amount that customers need to spend in order to qualify for free shipping. You can use a free shipping threshold calculator to help you determine the ideal threshold for your business.
There are a number of factors that you should take into account when setting your threshold, such as your average order value, your shipping costs, and your profit margins.
How to find the perfect free shipping threshold for your store?
Thanks to RetentionX, you can identify the sweet spot where customers are motivated to spend a bit more to qualify for free shipping without making it so high that they abandon the purchase completely. With our free shipping threshold calculator, you can determine exactly what amount will work best for your store!
The report tells you if the amount of money people have to spend before they get free shipping is too low, too high, or just right. The diagrams below show three different examples of the shipping threshold.
Threshold is set too low
Threshold is set too high
Threshold is set just right
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