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Set free shipping above your average order, never right at it

By the end, you'll know how to calculate, with your own numbers, the order amount above which you offer free shipping, and check that once shipping is subtracted, the order still leaves you a margin.

By Yodai · Published September 6, 2026 · Updated October 12, 2026

4 min read

You've set your shipping price, and now a question comes up: should you offer free shipping above a certain amount, like the big stores do?

The problem isn't deciding whether to do it. It's deciding the number. Set it too low, and you end up giving away free shipping on almost every order without getting anything in return. Set it too high, and the "free shipping" banner just sits there for show, since no one ever reaches it, and it stops sounding like a real perk.

The right threshold doesn't come from looking at your competitors. It comes from looking at your own orders.

Why the threshold can't be your average order

The costliest mistake is setting free shipping right at the amount you already average. If your average order is $24 and free shipping kicks in at $24, nothing has changed for your business: you're still billing the same amount, except now the shipping cost no longer shows up as a separate line, it just comes out of your pocket on half your sales.

The threshold has to sit above what the customer normally spends. That way it stops being a gift you were already giving and becomes a reason to add one more item to the cart before checking out. That gap between what they used to buy and what they buy now is the only thing that pays for the free shipping you're giving them.

Example: what share of orders would hit each threshold
Free starting at $1590%
Free starting at $2555%
Free starting at $3525%
Free starting at $508%

What happens below the threshold

Offering free shipping over a certain amount doesn't mean raising the shipping price for small orders. A $12 order still pays exactly the flat shipping rate you already set, not a penny more. If you raise it to make up for the big orders that do get free shipping, the customer who buys less will notice right away and feel like they're being punished for not spending more.

The threshold isn't a penalty for someone who buys less. It's a carrot for someone who's just one step away from buying a bit more. That difference is what makes the banner work instead of generating complaints.

The math in three steps

How to land on the number
  1. 1Look at your real average order
    Add up the total of your last twenty or thirty orders and divide. Not the price you'd like to sell at, the one your customers actually pay today.
  2. 2Add a bit extra
    That extra bit is what can push someone to add another product, not what they were already going to buy anyway. For example, if the average order is $24 and you add 30% to 50% on top, the threshold lands between $31 and $36.
  3. 3Check that your margin holds up
    Calculate how much you earn on an order right at the threshold and subtract the shipping cost. If there's still profit left, the number is good. If shipping eats up almost everything you earn, raise the threshold before you announce it.
The banner that makes it work
Free shipping on orders over $35

How you'll know if the number is right

A well-set threshold shows up in two things after a few weeks: the average order ticks up a bit, because some customers add something to reach free shipping, and your monthly margin doesn't drop overnight, because you're not giving away shipping on most of your sales.

If, when you review your numbers, you see that almost all orders already clear the threshold, raise it: it's stopped being a nudge and gone back to being your regular price, just without the shipping line in view. Check it every month, the same way you check what each shipment costs you.

The costly mistake: copying someone else's number
Setting "free shipping over $50" because you saw it at a big store, without looking at your own average order, backfires twice. If your average ticket is $20, the threshold almost never kicks in and the customer pays shipping on every purchase while the "free" promise does them no good. The number comes from your orders, not someone else's.
What you'll walk away with
  • Your real average order calculated from your latest sales, not eyeballed.
  • The free shipping threshold set above that average order, so it pushes customers to buy more instead of giving away what you were already selling.
  • Confirmed that the margin on an order at the threshold stays positive after subtracting the shipping cost.
  • The free shipping notice, with its amount, visible on your site and on product pages, not just at the last step.
  • In the next lesson: the delivery time you can promise without fail.

In Yodai the store comes with the Free plan, with a catalog, a cart and orders. See how to create your online store for free.

NextThe delivery time you promise and never miss