Free Shipping Threshold Strategy
A free shipping threshold can raise average order value significantly — if you set the number correctly.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & PODUpdated Fee data verified against official platform documentation
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.
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.