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A free shipping threshold is the order value a customer must reach to get free shipping.
A practical formula is:
Free shipping threshold = AOV + (shipping cost + target extra profit) / gross margin
For example, if AOV is $58, gross margin is 42%, shipping cost is $7.50, and target extra profit is $5, the suggested threshold is $87.76.
Use the Free Shipping Threshold Calculator at /tools/free-shipping-threshold-calculator, then compare the result with the Shipping Cost Calculator, AOV Calculator, Ecommerce Profit Calculator, and Product Pricing Calculator.
How to calculate a free shipping threshold
Learn how to set a free shipping threshold that encourages larger orders without destroying margin.
A practical formula is:
Free shipping threshold = AOV + (shipping cost + target extra profit) / gross margin
For example, if AOV is $58, gross margin is 42%, shipping cost is $7.50, and target extra profit is $5, the suggested threshold is $87.76.
Use the Free Shipping Threshold Calculator at /tools/free-shipping-threshold-calculator, then compare the result with the Shipping Cost Calculator, AOV Calculator, Ecommerce Profit Calculator, and Product Pricing Calculator.
Free Shipping
Shipping Cost
AOV
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Markup Calculator
Use this free markup calculator to compare cost, selling price, markup, profit, and margin before publishing a product price.
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Use this free shipping cost calculator to estimate carrier cost, packaging cost, and total shipping cost before setting product prices.
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Calculate profit per order after product cost, shipping, fees, and ad cost.