June 18, 2023

What is a free shipping threshold and how can you optimize it?

A free shipping threshold is a specific purchase value or order total that a customer must reach in order to qualify for free shipping on their order. It’s a promotional strategy used by brands to incentivize customers to spend a certain amount in order to receive the benefit of free shipping.

The free shipping threshold is usually set at a predetermined amount, such as $50, $100, or any other value determined by the brand. When a customer's cart total reaches or exceeds the specified threshold, the shipping fee is waived, and their order is eligible for free shipping.

The purpose of a free shipping threshold is to encourage customers to add more items to their cart or increase the value of their purchase. By setting a minimum order amount for free shipping, brands aim to increase the average order value (AOV) and boost sales. It provides an incentive for customers to spend a little more to avoid paying for shipping, which can be a significant factor in the purchasing decision.

How can I leverage my free shipping threshold to increase revenues in checkout?

A/B Testing

Run A/B tests with varying amounts to help you find your most profitable free shipping threshold. For example, customers may be willing to spend $15 more on your products if it means getting free shipping, but you wouldn’t know unless you tested it in real time, then  compared it to your current free shipping threshold. A/B testing shipping pricing is proven to be the most successful way to increase revenues in checkout quickly and efficiently.

Prominent display

Clearly communicate your free shipping threshold on your website, product pages, and during the checkout process. Display a progress bar or notification that shows customers how close they are to reaching the threshold. This visibility will encourage them to add more items to their cart to qualify for free shipping.

Threshold promotion

Highlight your free shipping threshold as a promotional offer to attract customers. Use banners, pop-ups, or promotional messages on your website to inform customers about the benefit of free shipping and the minimum order value required. Consider using persuasive language to emphasize the value and savings associated with reaching the threshold.

Product recommendations

Utilize personalized product recommendation algorithms or strategically curated suggestions to guide customers towards additional products that can help them reach the free shipping threshold. Showcase complementary or related items that align with their purchase history or browsing behavior. By suggesting relevant products, you can encourage customers to add more to their cart, increasing their order value.

Bundling and cross-selling

Offer bundled packages or discounted sets that surpass the free shipping threshold. Create product bundles that combine related items or complementary products. By bundling products together, customers can reach the threshold more easily while perceiving added value. Additionally, use cross-selling techniques to recommend relevant products that customers may find useful or appealing, encouraging them to purchase more items to qualify for free shipping.

Limited-time promotions 

Create a sense of urgency and encourage immediate action by running limited-time promotions tied to the free shipping threshold. For example, offer free shipping for a limited period or during specific events such as holidays, special occasions, or seasonal sales. This time-limited offer can motivate customers to complete their purchase sooner to take advantage of the benefit.

Clear messaging and communication

Ensure that the terms and conditions of your free shipping threshold are clearly communicated to customers. Provide information about the threshold prominently on your website, in product descriptions, and during the checkout process. Avoid any confusion or surprises regarding the free shipping eligibility requirements to maintain transparency and trust with your customers.

Post-purchase incentives

Consider offering post-purchase incentives to encourage customers to return and make additional purchases. For example, provide customers who have reached the free shipping threshold with a discount code or a special offer for their next purchase. This can incentivize repeat business and increase customer loyalty.

Increase your shipping revenues today

By implementing these strategies, you can effectively leverage your free shipping threshold to encourage customers to increase their order value and ultimately boost revenues during the checkout process. Remember to monitor and analyze the impact of these strategies to continually refine your approach and optimize results.

Download PrettyDamnQuick’s free Shopify app today to A/B test your most profitable free shipping threshold, and significantly increase revenues.  

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