A free shipping threshold is the minimum eligible order value a shopper must reach to have a delivery charge waived. The merchant still pays the fulfillment cost. Choose the minimum from your margins, delivery costs, and actual baskets, then check that checkout applies it correctly. A higher order value is useful only if the extra contribution covers the shipping you absorb.
This guide is for merchants choosing an offer, not shoppers looking for a retailer’s current minimum. All dollar amounts below are worked examples, not carrier quotes or measured sales results. Runner AI publishes this guide; the Runner example is based on inspected pricing source and regression tests, not a live-store checkout test.
Define what your free shipping threshold covers
Before choosing a number, write the rule in a sentence. For example, “Free standard shipping on eligible domestic orders with at least $60 in qualifying items after discounts.” That sentence commits you to a delivery service, destination, minimum, and calculation basis. Each part must agree with the rule your checkout actually uses.
Keep these decisions explicit:
- Eligible spend. Does the minimum use all items or only selected products? Is it calculated before or after discounts?
- Destination. Which countries, regions, or postal codes qualify?
- Delivery service. Does the offer waive standard delivery only, while express remains paid?
- Product exceptions. Do heavy items, supplier products, or separate fulfillment locations change eligibility?
- Boundary. Does “at least $60” include exactly $60? Avoid “over $60” if the minimum is inclusive.
The definition is simple, but the rules underneath can differ. Racklify’s threshold overview discusses geographic and oversized-item exceptions. Do not assume that a competitor’s advertised minimum includes the same orders as yours.
A threshold also differs from a permanently free shipping option. One waives a charge when conditions are met; the other may charge zero on every eligible order. If you are still choosing the underlying paid rate, read the flat rate shipping guide first.
Calculate the cost before choosing the minimum
Start with representative orders and actual delivery quotes. Record product revenue after discounts, product cost, payment fees, packaging, handling, and outbound shipping. Include the destination and number of shipments. Averages help you compare offers, but they can hide expensive remote destinations or bulky products.
For a first estimate, calculate what remains before shipping:
Contribution before shipping = net product revenue minus product cost, payment fees, packaging, and other variable order costs.
Subtract the delivery cost to see what remains under free shipping. This is not net business profit; rent, salaries, acquisition costs, returns, taxes, and other expenses may still need to be covered. Use the product pricing guide to place shipping inside the wider cost calculation.
Here is a simplified comparison of two hypothetical baskets. Assume the same 40% contribution rate before outbound shipping and a constant $6 delivery cost.
- $45 basket. Net product revenue of $45 leaves $18 at the assumed 40% contribution rate. Subtract $6 for delivery, leaving $12.
- $60 basket. Net product revenue of $60 leaves $24 at the same contribution rate. Subtract $6 for delivery, leaving $18.
The larger basket adds $6 in contribution before shipping: $15 multiplied by 40%. That equals the assumed delivery cost. It does not prove that a $60 minimum is profitable for your store, or that customers will add $15 of goods. It only explains the arithmetic under those assumptions.
Also compare against your current paid-shipping policy. If the shopper previously paid the full $6 delivery charge, waiving it gives up that revenue. A basket that grows by $15 at the assumed margin merely offsets that waiver; it does not automatically improve contribution.
For a rough estimate of the extra sales needed to fund a waiver, divide the shipping subsidy by the contribution rate. Here, $6 divided by 0.40 equals $15. Recalculate if the added products have lower margins or make the parcel more expensive. Use a shipping zone map when destination differences materially change your quotes.
Verify the rule before advertising it
Write expected results before testing checkout. For an illustrative $60 minimum with a $6 standard rate below it, an eligible $59.99 basket should cost $6 to ship. At $60 and $60.01, that same delivery option should cost $0. Keep the destination, service, products, and currency unchanged while checking the boundary.
Then change one condition at a time:
- Apply a discount that moves the basket below the minimum. Check whether your configured rule uses the discounted amount.
- Remove an item after qualifying. Confirm that both the shipping charge and any progress message update.
- Change to an excluded destination. Confirm that a qualifying subtotal does not create unsupported delivery coverage.
- Add a product from another fulfillment location. Check the final combined charge, not just one shipment’s fee.
- Select express delivery. Confirm that the free-standard-shipping offer does not promise a free upgrade.
- Try a product with no eligible shipping option. Check that the offer does not hide the delivery problem.
Runner’s market-shipping pricing function, priceMarketShippingOption, gives a concrete boundary example. Its regression test uses a $50 minimum and a $5 rate. An item subtotal of $49.99 returns a $5 charge; $50 returns $0. The function checks that the option can serve the cart before applying the threshold, so reaching the minimum does not manufacture a missing rate or shipping origin.
Those are source-level rules, not proof of any particular store’s deployed version or configuration. For setup guidance, use the Runner shipping documentation, then verify your own storefront. The shipping workflows feature page explains the broader product scope.
Judge the offer by contribution, not basket size alone
Once the rule works, decide what evidence would justify keeping it. Track completed orders, conversion, net product revenue, delivery charges collected, actual shipping costs, and contribution after variable costs. Compare similar periods and note promotions, traffic-source changes, stockouts, and product-mix changes that could distort the result.
PrettyDamnQuick’s threshold guide recommends testing different minimums and communicating the offer clearly. Treat an attainable minimum as a hypothesis, not a guaranteed sales increase. A larger average basket can coexist with fewer orders or a higher shipping subsidy.
Keep the cart message consistent with the checkout rule. If only discounted eligible items count, the remaining-spend message must use that same amount. State the destination and service restrictions where shoppers see the offer, rather than revealing them only after they enter an address.
Recheck the economics when carrier costs, supplier locations, discounts, or the catalog change. A minimum that worked for lightweight products may stop making sense after adding heavier ones. Keep the offer only when the customer-facing promise and the cost evidence still agree.
Free shipping threshold questions
What is a good minimum order for free shipping?
There is no universal amount. Start with the orders your customers already place, their contribution margins, and the delivery costs you would absorb. Choose a minimum shoppers can plausibly reach with useful products, then test both checkout behavior and business results. Another retailer’s minimum is a comparison point, not evidence that the same amount works for your catalog.
Should the minimum apply before or after discounts?
Use the basis supported by your configured shipping rule and state it clearly. A $65 basket with a $10 discount is $55 after discount; it qualifies for a $60 minimum only if the rule uses the earlier amount. Test the actual checkout calculation. Do not let a banner count pre-discount spend while checkout silently uses post-discount spend.
Does meeting the threshold make every delivery option free?
Not necessarily. Eligibility can depend on the destination, products, shipping origin, and selected service. A free standard option does not imply free express delivery. Reaching the minimum also cannot make an unavailable service cover an unsupported address. Name the eligible service in the offer and verify each exception with a representative cart.
Is it worth adding an item just to get free shipping?
For a shopper, compare the extra item’s price with the delivery fee and whether the item is actually useful. Adding an unwanted $15 item to avoid a $6 charge increases spending by $9. For the merchant, evaluate the added contribution and shipping subsidy separately. A free shipping threshold should communicate a clear choice, not imply that every larger purchase saves money.