Free Shipping Thresholds: The Hidden Conversion Lever

What if I told you that 'Free Shipping on Orders Over $75' could outperform '15% Off Everything'?

It sounds counterintuitive, but our research shows free shipping thresholds deliver superior results on two critical metrics:

1. Cart Completion Rate: +41%
2. Average Order Value: +47%

Here's why it works:

Psychological Framing: 'Free' is the most powerful word in marketing. Customers perceive shipping as a loss, not just a cost.

Strategic Anchoring: Set your threshold slightly above your current AOV, and customers add items to qualify.

Margin Protection: Unlike percentage discounts, shipping thresholds don't erode product margins.

One home goods retailer replaced their 20% off sale with free shipping over $75 (their AOV was $52). Results:
- Cart abandonment dropped from 68% to 39%
- Average order value increased from $52 to $76
- Gross margin improved by 12%

The key is threshold optimization. Too low, and you're just absorbing shipping costs. Too high, and you won't change behavior.

Our recommendation: Set your threshold 20-30% above your current AOV for optimal results.