Free Shipping Threshold Strategy
A free shipping threshold can raise average order value significantly — if you set the number correctly.
By Marginory teamContent reviewed
The strategy
Set a free shipping threshold slightly above your current average order value (AOV). Buyers close to the threshold are incentivized to add another item to qualify, increasing your average order size — often enough to offset the shipping cost you're absorbing.
Setting the number
Threshold = Current AOV × 1.15 to 1.3
Example: if your current AOV is $40, a threshold around $46-52 gives buyers a realistic, motivating gap to close — not so far it feels unreachable, not so close it's barely a nudge.
What industry data commonly reports
The figures below are commonly cited industry data pooled across many case studies and ecommerce growth resources (including Shopify's own blog) — not a single precise number that applies identically to every store. Treat this as a reasonable starting range to test, not a fixed rule.
- Optimal free shipping threshold is commonly cited as 1.15x to 1.30x current AOV (a 15-30% increase over baseline).
- Stores that apply this correctly, paired with a visible progress indicator, commonly report an AOV increase of roughly 15-30%.
- Buyers who add items to cross the threshold typically overshoot it, adding $3-8 more than the minimum needed — they don't stop right at the line.
Worked example: AOV $65 → threshold $80
A buyer at $58 sees they need $22 more — a realistic single add-on rather than an unreachable stretch — and, per the buyer-behavior data above, often adds more than the strict minimum to clear the line comfortably.
Sources: aggregated industry case studies and ecommerce growth resources (Shopify blog and others) · Last verified 2026-08-24.
Checking the math works
The threshold only helps if the average shipping cost you absorb is less than the additional margin from the increased order size. Model this before committing to a number.
Making the threshold visible
A progress indicator in the cart ("Add $8 more for free shipping") is far more effective at driving the intended behavior than simply stating the policy on a shipping info page buyers may never visit.