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free-shipping-threshold

free-shipping-threshold

“Free shipping over €75” sounds much better than “Delivery €6.90”.

But someone still pays that €6.90.

Usually, it is the retailer.

Free shipping can encourage customers to add one more item to the basket. It can also turn a profitable order into an unprofitable one.

The difference comes down to one thing:

the threshold has to be calculated, not guessed.

Why copying competitors is a bad idea

A common approach is to look at another store and copy its free shipping rule.

If a competitor offers free delivery over €50, the temptation is to do the same.

But two stores can have completely different:

product margins;

basket sizes;

packaging costs;

carrier rates;

return rates;

payment costs.

A threshold that works for one retailer may be too low for another.

That is why free shipping should be based on the economics of the order, not on what competitors display.

Start with contribution margin

Imagine an order worth €60.

The retailer pays:

€35 for the products;

€1.50 in payment fees;

€1.50 for packaging;

€2.00 for fulfilment;

€6.00 for delivery.

That leaves €14 before fixed costs, taxes, marketing and returns.

Now the customer adds another product worth €20.

Its product cost is €11 and the delivery cost stays the same.

The order becomes more profitable even though the retailer pays for shipping.

This is the basic logic behind a free shipping threshold.

The customer increases the basket.

The retailer uses part of the additional margin to cover delivery.

How to choose the threshold

Start with three numbers:

current average order value;

average shipping cost;

average contribution margin.

Then test a threshold slightly above the current average basket.

For example, if the average order value is €62, a threshold around €75 or €80 may encourage customers to add another item.

But this is only a test.

The real question is:

Does the extra margin from the larger basket cover the delivery cost?

If not, the threshold is too low or the product mix is not suitable for free shipping.

Free shipping does not need to apply to every delivery method

Parcel lockers and pickup points are often cheaper than home delivery.

That creates a useful option:

Free pickup-point delivery over €75

while home delivery remains paid.

This can improve conversion without forcing the store to absorb the most expensive delivery method.

The same logic applies to:

express shipping;

international delivery;

oversized products;

furniture;

heavy goods.

“Free shipping” does not have to mean “every delivery option is free”.

Cross-border ecommerce needs separate rules

European retailers often sell across several countries.

Shipping costs can vary dramatically by destination.

A threshold that works in the domestic market may make no sense for another country.

For example:

domestic delivery may cost €5;

neighbouring EU delivery may cost €9;

remote-zone delivery may cost €15 or more.

Using one threshold across every market can destroy margin.

Cross-border stores should consider country-specific or zone-specific rules.

Show customers how close they are

A simple message in the basket can increase order value:

“Add €12 more to qualify for free delivery.”

This works because the customer understands the benefit immediately.

It becomes even more effective when the store recommends relevant low-cost products.

For example:

accessories;

refills;

consumables;

small add-ons;

related products.

The goal is not to fill the cart with random items.

It is to make the next useful addition obvious.

Be careful with discounts

Free shipping can behave badly when combined with aggressive promotions.

Imagine a customer reaches the threshold before applying a discount code.

After the discount, the order value falls below the free-shipping level.

Should the store still offer free delivery?

There is no universal answer.

But the rule must be clear.

The same applies to:

loyalty discounts;

gift cards;

bundle discounts;

customer-group pricing.

Shipping rules should be tested together with all major promotions.

PrestaShop can handle threshold-based shipping rules

PrestaShop supports free shipping by order value and allows additional conditions through cart rules and carrier configuration.

That makes it possible to create logic such as:

free delivery above a minimum basket value;

free delivery only for selected carriers;

free shipping in certain zones;

exclusions for specific products.

More advanced scenarios can be handled through modules or custom logic.

For Ewonta stores built on PrestaShop, shipping rules can therefore be adapted to the real economics of the business rather than using one fixed rule for every order.

Measure profit, not only conversion

A free shipping campaign may look successful because:

conversion increases;

average order value rises;

more orders are completed.

But that does not automatically mean profit increased.

You also need to track:

shipping cost per order;

contribution margin;

average basket after discounts;

return rate;

order profitability.

If orders increase but profit falls, the offer is working against the business.

The main principle

Free shipping is not really free.

It is a pricing and margin decision.

Used well, it can:

increase average order value;

reduce checkout friction;

encourage customers to add another item;

make the offer easier to understand.

Used badly, it simply transfers logistics costs to the retailer.

The right threshold is the one where the larger basket creates enough additional margin to pay for delivery.