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Free-shipping threshold:
where it still pays
Your average order, its costs and what shipping costs you. See the order value above which free shipping still keeps the margin you want.
Free shipping from
€41.43
Below this an order cannot carry its shipping and keep 30%. It is 69% of your average order.
- Kept on an average order
- €22.03
- …as a share of it
- 36.7%
- Left before shipping
- €31.03
| €45.00 | keeps €14.27 | 31.7% |
|---|---|---|
| €60.00 | keeps €22.03 | 36.7% |
| €75.00 | keeps €29.79 | 39.7% |
| €90.00 | keeps €37.55 | 41.7% |
| €120.00 | keeps €53.07 | 44.2% |
Shipping is a fixed €9.00 per order, so the larger the order, the smaller the share of it that shipping takes.
01 / How it is worked out
The arithmetic, in the open
Of every unit of money a customer pays, what is left before shipping is: what remains after the VAT inside it, the cost of goods (a share of sales before VAT) and the payment fee. Shipping is a fixed amount per order.
The threshold is the order where that fixed amount is exactly what the order can spare while still keeping your margin: the shipping divided by what is left per unit of money after the margin. Orders below it lose the margin you wanted; orders above it keep it.
It is one average order. On a connected store Profflow costs the shipping on each real order and shows the margin by order size.
02 / Questions
What people ask with it
How do I choose a free-shipping threshold?
Start from the lowest order that still keeps your margin with shipping paid — that is the floor. Then set the threshold a little above your average order, so a customer a few euros short adds an item rather than paying for shipping.
Why does a small order lose money with free shipping?
Shipping costs the same whatever is in the box. On a small order it is a large share of what the customer paid, and it comes out of the same pot as the goods, the VAT and the payment fee.
Does free shipping pay for itself?
Only if it raises the average order or the number of orders enough to cover the shipping it gives away. This page shows the floor; whether the customers respond is something a store has to test.
How does Profflow do this on a connected store?
It costs the shipping on each real order and shows the margin by order size, so the orders that free shipping turns into a loss are visible instead of averaged away.
03 / More free tools
The other questions, answered the same way
Profit calculator
What a month keeps after ads, fees, returns, goods and shipping.
Use it →Discount break-even
How deep a sale can go, and how many more units it has to sell.
Use it →Break-even ROAS
The ROAS below which an ad loses money on every order.
Use it →Shopify fees
What Shopify, the payment providers and the apps take from a month’s sales.
Use it →Price calculator
What to charge so a unit keeps the margin you want, after VAT, goods, shipping and fees.
Use it →P&L template
A monthly P&L to download — sales down to net profit, for Google Sheets or Excel.
Use it →Store check
What a store’s own public pages show about its prices and stock.
Use it →
See it on your own store.
This is an estimate from the figures you typed. A connected store is measured order by order — read-only, in about ten minutes.