Benchmyrk

Glossary

Free shipping threshold

The order value above which shipping is free, set to grow baskets and orders while paying for the shipping it gives away.

Also called free shipping minimum

Shoppers just below the threshold often add an item to reach it, and some who wouldn't have bought do. Every order at or above it stops paying for shipping, including orders that would have been placed anyway.

Whether a threshold pays depends on how many orders it adds and how much bigger baskets get, against the shipping it gives away.

For exampleExample

A store with $62 baskets, a 60% margin and $8.50 shipping costs charges $6.95 and tries free shipping from $75, which 22% of orders already reach. With baskets unchanged it needs about 4.5% more orders to earn as much per visitor.

Where it comes up

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