Free shipping threshold calculator
Enter your average order value, margin and shipping cost to find the threshold where free shipping raises basket size and still leaves margin on the order.
Suggested free-shipping threshold
₹1,399
About 27% above your current AOV
Break-even order value
₹178
Where margin alone covers shipping
Margin on a threshold order
₹550
After absorbing shipping
Margin on an average order today
₹464
Including the fee you charge
Rule used
max(break-even, AOV × 1.25)
Rounded to a 49/99 price point
Set the threshold where a second item gets most carts over the line, show progress to it in the cart, and keep a paid express option. Background: free shipping threshold strategy.
The two numbers behind a threshold
Free shipping above a threshold is the most reliable way to lift average order value, as long as the threshold is set with the maths rather than by copying a competitor. Two numbers matter: the break-even order value, where your gross margin covers the shipping you absorb, and your current average order value, which the threshold should sit comfortably above so customers add an item to reach it.
How the recommendation is calculated
The rule here takes the higher of break-even and 1.25 times AOV, then rounds to a 49 or 99 price point. Show progress to the threshold in the cart, keep a paid express option, and revisit the number whenever your shipping cost or margin moves.
Questions about this tool
Fifteen to thirty percent above average order value is the usual band. Too close and you give away shipping on orders you would have had anyway; too far and nobody stretches to reach it.
Then free shipping on average orders loses money. Set the threshold at break-even or higher, or lower shipping cost first by comparing couriers and fixing volumetric weight.
Only if shipping is a small share of margin. For most Indian stores a threshold with a modest paid rate below it converts almost as well and protects margin on small orders.
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