The sneaky lever that can quietly fix your margins
And how to use it
Hi there,
Shipping thresholds aren’t the most sexy of topics. But they are powerful.
Get it wrong, and you’re either bleeding margin… or leaving money on the table because your customers bounce at checkout. Neither are fun.
Get it right, and suddenly Average Order Value creeps up and margins look healthier.
In my latest article for Convert, I share how to figure out when to test shipping thresholds and what exactly to test. Because if you’ve ever wondered, “Should I change my free shipping threshold?”, this guide will give you the confidence to do it right.
Most brands set it and forget it
But if your AOV is hovering near your free shipping threshold, there’s a good chance you’re giving away margin for no reason. That’s not the only red flag, though:
Do your margins feel tight, but AOVs are low?
Do you see a spike in conversions when running “free shipping sitewide” offers?
Then it’s worth exploring. Plus, I share a few creative ideas in the article, like framing thresholds based on item count instead of spend, that had an impact for a brand I work with.
Recommendations
Convert, an incredible testing platform for Shopify, sponsors this week’s newsletter. If you’ve got the traffic to run A/B tests, they’re a great platform to use.
Pricing is an underappreciated lever, especially in eCommerce. Here are 5 additional ways that small changes in how you present price can make a big difference.
Shipping isn’t just a number. It’s a story. How you frame it, how you communicate it, and how it shows up in the cart matters as much as the price itself.
Even if you don’t end up A/B testing it, don’t be one of those brands that only show it at checkout after customers have filled in their address. No one likes that.
Till next week,
Daphne