Free shipping threshold examples for ecommerce stores
Use simple examples to understand how free shipping thresholds affect AOV, margin, and shipping cost.
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How to calculate a free shipping threshold
Learn how to set a free shipping threshold that encourages larger orders without destroying margin.
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.
How to calculate average order value
Learn the AOV formula, see a simple ecommerce example, and understand why average order value matters for marketing decisions.
AOV vs LTV: how they work together
AOV and LTV measure different parts of customer value. Learn how average order value affects lifetime value and acquisition decisions.