Free Shipping Threshold

It's your average order value plus 20% — a common heuristic reasoning that a threshold moderately above your current average encourages customers to add one more item to qualify, without being so high it discourages the offer.

The suggested threshold (AOV + 20%) is a marketing figure aimed at increasing basket size. The margin-protection minimum is the lowest order value at which absorbing the shipping cost still leaves your target margin intact — they're calculated independently and can differ.

No — it's a starting reference point based on a common ratio, not a guarantee. Test different thresholds against your own conversion and average order value data.

Enter your typical or average shipping cost — if it varies significantly, run this with your highest-cost scenario to make sure the threshold protects margin even on your most expensive-to-ship orders.