
Free shipping can be a game-changer for your ecommerce business, increasing customer satisfaction and loyalty by up to 80%.
Many online shoppers expect free shipping, with 90% of consumers saying it's a major factor in their purchasing decisions.
To make free shipping work for your business, consider offering it on orders above a certain threshold, such as $50 or $100.
This can help you maintain profitability while still providing a valuable perk to your customers.
Benefits of Free Shipping
Offering free shipping is a game-changer for online sales. 61% of buyers are likely to abandon their cart if they don't get free shipping at checkout.
People love shopping online, with 2.71 billion people worldwide doing it in 2025. By offering free shipping, you can retain customers and increase the size of each order as consumers try to meet the minimum purchase threshold.
You're competing with Amazon, which has over 167 million Prime members in the US alone. Online shoppers are getting used to fast and free shipping, making it a must to stay competitive.
For more insights, see: Walmart Order Online Delivery Tracking
Why Is It Better?
People love shopping online, with 2.71 billion people worldwide doing it in 2025. This makes it a highly competitive market, where customers have high expectations for a seamless shopping experience.
61% of buyers are somewhat likely to abandon their cart if you don't offer free shipping at checkout. This can lead to lost sales and a negative impact on your business.
Offering free shipping, especially after a minimum purchase threshold, can retain customers and increase the size of each order. Consumers will make an effort to surpass that threshold to get free shipping.
You're competing with online retail giants like Amazon, which has over 167 million Prime members in the US alone. These customers are getting used to receiving fast and free shipping when they buy new items.
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Does Delivery Boost Sales?
Free shipping can be a game-changer for your sales. You're very likely to see an increase in sales when you add a free shipping banner to your Ecommerce store.
Offering free shipping can increase order value by 30%. Free shipping is also twice as likely to entice customers than a percentage off product prices.
Free shipping can lead to a significant boost in sales, as seen in NuFace's split-test. Their sales increased by 90% after adding free shipping.
While offering free shipping will decrease your profit margins, it can still be worth it if your sales and average order value increase enough.
Staying Profitable with Free Shipping
Free shipping is a game-changer for online sales, but it's not a guarantee of profitability.
To stay profitable, you need to consider the right ways to implement free shipping in your business. Cutting into your margins too much can lead to losing money on sales instead of profiting.
There are several ways to offer free shipping without sacrificing profit. One approach is to negotiate better rates with carriers, especially if you ship orders frequently.

Working with third-party logistics (3PL) providers can also help you access volume discounts and save money on shipping costs. ShipBob, ShipStation, and EasyPost are examples of 3PL providers that offer competitive shipping rates.
Using a fulfillment service can also help keep logistics costs low. Amazon FBA, Shopify's Fulfillment Network, and Flexport offer competitive shipping rates and handle warehousing and fulfillment for you.
Regional parcel carriers can be another cost-effective option. They deliver packages within a specific geographic area, like a region, state, or city, and are often faster and cheaper than major carriers.
Here are some strategies for keeping shipping costs down:
- Negotiate better rates with carriers
- Work with 3PL providers
- Use a fulfillment service
- Choose regional parcel carriers
By combining these strategies, you can keep your shipping costs down and offer free shipping to your customers without sacrificing profit.
Implementing Free Shipping
Implementing free shipping can be a game-changer for your online sales, but it's essential to consider the impact on your product pricing.
Free shipping may not make sense for small, inexpensive items, as the shipping cost could be more expensive than the item itself.
To include shipping costs in the product price, calculate the necessary markup using the average shipping cost per order.
You won't cover the entire shipping cost, but the additional orders from offering free shipping may quickly offset that difference.
From a fulfillment perspective, it costs just as much time and labor to fulfill a sub-$10 product as it does a $100 product, but the revenue is vastly different.
Don't expect or try to make a profit on shipping, especially if you're selling commodities that can't be marked up individually.
Targeting Customers with Free Shipping
Offering free shipping to rewards program members can be a cost-effective way to incentivize sign-ups and loyalty. You can offer free shipping to those who join your rewards program, which can be a great way to grow your marketing list.
This approach allows you to reduce costs while also expanding your customer base. For example, you could offer free shipping to anyone who signs up to receive email and text promos and stays signed up.
Companies like Walmart, Amazon Prime, and Wayfair have successfully implemented rewards programs that offer free shipping with no minimum order threshold, showing that it's a viable strategy for online retailers.
Shopper Preferences
Some customers may be more motivated by discounts on the products they want, while others may prefer free shipping.
Staying on top of consumer behavior is vital, as it can affect the success of free shipping offers.
Ecommerce stores can tailor their offers to cater to different shopper preferences, such as offering free shipping in certain locations.
For example, Kindred Bravely offers free shipping over a threshold that varies depending on your location, but some locations like Alaska and Hawaii don't have free shipping at all.
Rewards Program Members
Offering free shipping to rewards program members can be a great way to incentivize customers to join and stay engaged with your brand. You can build a rewards program that offers free shipping to its members, as seen in the examples of Walmart, Amazon Prime, and Wayfair.
This approach allows you to target customers who are already invested in your brand and more likely to make repeat purchases. By offering free shipping, you can create a sense of loyalty and appreciation among your rewards program members.
Consider offering free shipping to anyone who signs up to receive email and text promos, and stays signed up. This can help you grow your marketing list while reducing costs.
Marketing and Promotion

Offering free shipping can be a game-changer for your online sales. It can help acquire more customers while cutting down on operations costs.
You can offer free shipping as an opt-in incentive to new email subscribers, which can lead to more sales and a loyal customer base. This strategy can be combined with limited-time free shipping promotions to keep customers engaged.
Here are some effective ways to offer free shipping:
- Orders over a specific dollar amount: This can encourage customers to add more items to their cart to receive free shipping.
- Buy two or more items: This can be a great way to up-sell and increase average order value.
- A pre-determined time period: Offering free shipping during slow periods or highly-competitive seasons can give you a competitive edge.
New Email Subscribers
New Email Subscribers can be acquired by offering free shipping as an opt-in incentive. This strategy helps acquire more customers while cutting down on operations cost.
You can combine this strategy with limited-time free shipping promotions to incentivize customers to order again.
Free shipping in your store can generate more sales, making it a valuable marketing tool.
Different Ways to
Offering free shipping can be a great marketing tool, but it's not a one-size-fits-all solution. You can offer free shipping as an opt-in incentive, but it's more effective when combined with other strategies.
You can run limited-time free shipping campaigns, which can help increase your average order value and protect your profit margins during sales. This is especially effective if you have returning customers and email subscribers who know about the date and wait until then to order everything on their wishlist.
To make free shipping work for you, you can also increase the product price and bake the cost of shipping into the product price tag. This gives the illusion of free shipping while making up for the shipping cost.
Another way to offer free shipping is to set a minimum order value, such as orders over a specific dollar amount. This encourages customers to add more items to their cart to receive something for free, especially delivery.
You can also offer free shipping on specific products, especially if they're expensive to ship or have lower profit margins. This way, you can still offer a perk to your customers without losing too much profit.
Here are some different ways to offer free shipping:
- Orders over a specific dollar amount: $50, $75, or $100
- Buy two or more items:Up-sell through the use of a free shipping campaign
- A pre-determined time period: Offering free shipping during a specific time frame, such as a holiday season or a slow period
- Specific products: Choose products with lower profit margins or expensive shipping costs
Beginner's Guide to Abandoned Cart Emails
Abandoned cart emails are a common phenomenon, with the majority of online shoppers leaving their carts behind without making a purchase.
The fact that many of us have been guilty of abandoning our carts at some point makes it a relatable and familiar concept.
In fact, the majority of online shoppers do this, suggesting that it's a widespread issue that many businesses face.
The key to addressing this issue is to send targeted and effective abandoned cart emails that encourage customers to return and complete their purchase.
By doing so, businesses can recover lost sales and increase their conversion rates.
Additional reading: Order Fulfillment Online
10 SEO Tips for Ecommerce Product Pages
Product pages are the most important thing in your online store, but many people forget to optimize them. They tend to focus on category sections and copy and paste product descriptions from the manufacturer.
Optimizing product pages is crucial for appearing in organic search results and driving traffic to your store for free. If you're not doing it, you're missing out on a big opportunity.

You can appear among organic search results by optimizing your product pages. This can help drive traffic to your store for free.
Many people don't pay enough attention to optimizing product pages. They either forget about them or simply copy and paste product descriptions provided by the manufacturer. Big mistake.
Optimizing product pages can help increase sales. This is because it can help you get to the top of Google search results.
You can get beginner-friendly tips for growing your online business by optimizing your product pages.
Calculating and Managing Free Shipping
Calculating and managing free shipping is crucial to making it a profitable strategy for your online business. You can use the Minimum Order Threshold (MOT) formula to determine the minimum amount customers need to spend to qualify for free shipping.
The MOT formula is MOT = (Average Shipping Cost per Order ÷ Target Profit Margin) + Average Order Value (AOV). For example, if your average shipping cost per order is $8, target profit margin is 30%, and average order value is $40, your MOT would be $26.67 + $40, which equals $66.67.
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To calculate your MOT, you'll need to consider your average shipping cost, target profit margin, and average order value. This will help you set a threshold that balances your shipping costs with your profit margins. By using this formula, you can create a profitable minimum order threshold that benefits both your business and your customers.
You can also consider offering a no-strings-attached version of a minimum order threshold, where customers don't need to sign up for an account to get free shipping. This can encourage brand loyalty and repeat purchases, making the shipping costs a worthwhile investment.
Minimum Spend Threshold Calculation
Calculating your minimum spend threshold is a crucial step in creating a cost-efficient free shipping strategy. To determine the right amount, consider increasing your average order value (AOV) by about 30%. This will give you a baseline to work with.
For example, if your AOV is $75, increasing it by 30% would result in a minimum spend threshold of $98. However, it's generally recommended to round up to a more standard number that customers would expect to see, such as $100.

To calculate your minimum spend threshold, you can use the formula: MOT = (Average Shipping Cost per Order ÷ Target Profit Margin) + Average Order Value (AOV). This formula takes into account the average shipping cost per order, target profit margin, and AOV.
For instance, if your average shipping cost per order is $8, target profit margin is 30%, and AOV is $40, the calculation would be: MOT = ($8 ÷ 0.30) + $40 = $26.67 + $40 = $66.67. Rounding up to the nearest dollar, your minimum spend threshold would be $67.
How to Pay
Calculating and managing free shipping can be a challenge, but there are ways to make it work. You need to factor shipping into your operation and pricing from the start, understanding the costs from the moment you receive inventory and including it in your financial models.
To make free shipping a reality, you can market it as a distinguishing perk to your customers. Mention free shipping on every major page that gets customer visits, and be sure to include it on product pages. This way, customers are aware that it's a value-added service.
Shipping costs can be reduced by focusing on up-sells and cross-sells. As items are added, shipping becomes more efficient, and merchants can make up for the costs through increased sales. By doing so, you can turn shipping into a margin-mover.
Establishing relationships with shipping vendors can also help reduce overhead costs. This can be a long-term play, where you take a short-term loss in the hopes of generating loyal customers and brand advocates.
Choosing the Right Business Strategy
Discounts and free shipping can be powerful tools to drive conversions, but it's essential to understand the impact on your business and customers. Discounts can be particularly effective for price-sensitive customers or during peak shopping seasons.
The key to using discounts effectively is to ensure they don't significantly erode your profit margins. Regularly using flash sales or offering heavy discounts can condition customers to wait for these sales periods, potentially harming regular sales.
Free shipping is a significant motivator for online purchases, especially for customers deciding between online and brick-and-mortar retailers. It eliminates an additional cost that customers often perceive as unnecessary.
However, offering free shipping can have financial implications, especially if your products have a low profit margin or are heavy and costly to ship. It's crucial to consider these factors before making a decision.
Using both discounts and free shipping strategically can boost your bottom line and increase your average order value. By combining these strategies with dynamic pricing, you can stay ahead of the competition and drive conversions sky high.
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Understanding Free Shipping
Free shipping can make or break a sale, literally, as it's a major factor in shopping cart abandonment. The global shopping cart abandonment rate is a staggering 70.19%, with most shoppers abandoning their carts due to unexpected costs like shipping.
Offering free shipping can eliminate an additional cost that customers often perceive as unnecessary, making it a significant motivator for online purchases. It's especially effective when deciding between online stores and brick-and-mortar retailers.
Is It Right For Me?

Free shipping isn't a one-size-fits-all solution. It's essential to consider whether it's right for your store.
You can start by testing it out as a promotion, even if it's just for a specific product or location. This will give you a better understanding of how customers respond to free shipping.
Experimenting with a minimum spend threshold can also be a good idea. For example, offering free shipping for two days only can help you gauge interest without committing to a long-term strategy.
Pay attention to how many people are meeting the free shipping threshold compared to historical data. This will help you determine if free shipping is driving action and increasing sales.
You'll also want to measure product returns to understand the ultimate effect on your profit margin.
What Is?
Free shipping is an ecommerce marketing strategy where the seller covers the costs of shipping a product to the customer. This lets customers get their orders without paying any delivery charges on top of the price paid for the products.
The global shopping cart abandonment rate is at 70.19%, up from 68.07% in 2014, and most shoppers abandoned their carts because of extra, unexpected costs like shipping.
Offering free shipping can literally make or break a sale, as it lets customers avoid unexpected costs and complete their purchases.
Perceived Value
Perceived Value is a crucial factor in determining whether customers will take advantage of free shipping. Customers are more likely to convert if they believe they are receiving significant savings via a discount or free shipping.
A discount or free shipping can give customers a sense of getting a good deal, making them more likely to make a purchase. This perceived value can be a powerful motivator for customers, especially if they're on a budget.
Customers are more likely to perceive value if they feel they're getting a good deal, and free shipping can be a key part of that.
Frequently Asked Questions
Which websites offer free shipping?
Free shipping is offered by Timberland on orders over $75 and potentially by other retailers listed, including Amazon, Nordstrom, and Overstock
Is shipping from Shein free?
Shipping from Shein is free on orders over $29 for standard shipping and $139 for express shipping
Is Target online shipping free?
Target offers free standard shipping on orders over $35 (tax and discounts not included) or with a Target Circle Card, otherwise a $5.99 flat fee applies
Sources
- https://getsitecontrol.com/blog/how-to-offer-free-shipping/
- https://www.crazyegg.com/blog/how-to-offer-free-shipping/
- https://blog.wiser.com/whats-better-conversions-discounts-free-shipping/
- https://www.shipbob.com/blog/how-to-offer-free-shipping-ecommerce-store/
- https://www.bigcommerce.com/glossary/free-shipping/
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