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Free Shipping Threshold Calculator
Free shipping is not free. It is shipping wearing a marketing hat.
Set a threshold that protects margin instead of handing every order a tiny shipping-cost grenade.
Inputs
Shipping threshold math
Results
Recommended threshold
$40.00
Your current AOV is already above the calculated threshold. That can work, but do not give away shipping lower than you need to.
- Margin after shipping at threshold35%
- AOV lift needed$0.00
- Approx. items needed2
Formula
minimum_threshold = shipping_cost / (gross_margin_rate - desired_minimum_margin_rate)
This formula only works when gross margin is higher than your desired minimum margin.
Threshold sanity
Do not set a threshold customers ignore.
A margin-safe threshold is useful only if customers can realistically reach it. If current AOV is $55 and the safe threshold is $140, congratulations, you built a decorative policy.
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