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Free shipping threshold and shipping cost should be reviewed together.
Shipping cost tells you what fulfillment costs. The threshold tells you how much extra order value you need before offering free shipping.
If the threshold is too close to current AOV, the store may pay shipping without gaining enough extra gross profit. If the threshold is too high, customers may ignore it.
Use the Shipping Cost Calculator at /tools/shipping-cost-calculator to estimate fulfillment cost, then use the Free Shipping Threshold Calculator at /tools/free-shipping-threshold-calculator to set the offer.
Free shipping threshold vs shipping cost: what to compare
A free shipping threshold should be compared with shipping cost, gross margin, and average order value.
Shipping cost tells you what fulfillment costs. The threshold tells you how much extra order value you need before offering free shipping.
If the threshold is too close to current AOV, the store may pay shipping without gaining enough extra gross profit. If the threshold is too high, customers may ignore it.
Use the Shipping Cost Calculator at /tools/shipping-cost-calculator to estimate fulfillment cost, then use the Free Shipping Threshold Calculator at /tools/free-shipping-threshold-calculator to set the offer.
Free Shipping
Shipping Cost
Ecommerce Profit
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Useful tools
Free Shipping Threshold Calculator
Calculate a free shipping threshold that covers shipping cost and protects margin.
Shipping Cost Calculator
Use this free shipping cost calculator to estimate carrier cost, packaging cost, and total shipping cost before setting product prices.
Ecommerce Profit Calculator
Calculate profit per order after product cost, shipping, fees, and ad cost.
Markup Calculator
Use this free markup calculator to compare cost, selling price, markup, profit, and margin before publishing a product price.
Amazon FBA Profit Calculator
Estimate Amazon FBA profit per unit from selling price, product cost, FBA fee, referral fee, and inbound shipping.
Break Even Calculator
Use this free break-even calculator to estimate break-even units, contribution margin, and revenue before launching or pricing a product.