Priority: 🔥🔥🔥 | Difficulty: 💪
Let’s face it, free shipping is a game-changer for shoppers. Whether you’re offering it as a perk or using it to nudge customers towards spending more, it’s a tried-and-true method to boost your average order value (AOV). But, here's the thing: get it wrong, and you could be shooting yourself in the foot.
So, let’s talk about how to increase your free shipping threshold the right way, without putting your customers off.
Why Free Shipping Works
Shipping costs are one of the biggest reasons people abandon their carts. Customers see that extra £5 or £10 tacked on at checkout, and suddenly, that impulse buy doesn’t feel so exciting anymore. Free shipping takes this pain point out of the equation, making the decision to purchase feel easy and frictionless.
But here’s the catch: you’re not Amazon. Offering free shipping on every order probably isn’t sustainable. That’s where your free shipping threshold comes in—it lets you reduce barriers without sinking your margins.
The key is to set that threshold at a sensible, achievable amount. If your average order value (AOV) is ÂŁ40, you might set your free shipping threshold at ÂŁ50. It encourages customers to spend just a little more, but not so much that it feels unattainable.
The sweet spot lies in balancing what your business can afford with what feels reasonable for your customers. Remove the barrier, but do it strategically.
The Sweet Spot: Finding Your Free Shipping Threshold
Here’s where you can go wrong: set the threshold too high, and you risk scaring customers off. Too low, and you don’t get the lift in AOV you’re after.
You want that sweet spot where the threshold feels like a challenge, but not an impossible one. Ideally, it should sit around or just above your average order value (AOV).
For example, if your AOV is ÂŁ40, offering free shipping on orders over ÂŁ50 can incentivize customers to add a few more items to their cart to hit that ÂŁ50 mark.
But be careful. Push that threshold too high – say, to £100 – and suddenly, customers will think, “Well, I’m not spending that much just to get free shipping,” and bail.
How to Find the Right Threshold for Your Store
Here’s the quick and easy way to figure it out:
- Look at Your AOV: Your free shipping threshold should be just a little higher than this.
- Test It: Start with a small increase and see how it affects your conversion rate and AOV.
- Use Data: If you already know your customer behavior, look at the point where people tend to drop off. Find the middle ground where you can increase the average order value without scaring people away.
Pro Tip: Using the Endowment Effect to Make It More Appealing
Make it feel like they’re already close to achieving free shipping, making them more likely to "complete" the goal.
- “You’re just £10 away from free shipping!”
- “You’re so close to unlocking free shipping—add one more item to your cart!”
- Make it easy with a cart upsell that just so happens to be the right amount!
That little push can make all the difference. It doesn’t feel like you're forcing a purchase, but rather, offering a sweet deal that’s right there within reach.
Bottom Line
Increasing your free shipping threshold is a smart way to boost your average order value, but you need to get the balance just right. Too high, and you'll scare customers away. Too low, and you're leaving money on the table. Find that sweet spot, test it, and adjust as you go.
Remember, this is all about making customers feel like they’re getting a deal – not tricking them into spending more than they’re comfortable with. When done right, this strategy can increase AOV without sacrificing customer satisfaction.
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This is just one of the strategies in the Double Your Profit in 90 Days Cheat-Sheet. If you haven’t grabbed your copy yet, download it now to get even more actionable tactics to boost your profits.