Free Shipping Threshold
A free shipping threshold is the minimum order value a customer must reach to qualify for free delivery, a rule stores use to nudge each order higher by giving shoppers a clear, low-friction reason to add one more item rather than pay for shipping.
The threshold works because shipping cost feels like waste, while another product feels like value. A shopper sitting at 38 against a 50 threshold will often add a 15 item to avoid a 7 charge, spending more in absolute terms but feeling like they saved. A progress message in the cart ("you are 12 away from free shipping") makes the gap visible and does most of the persuading.
Set the threshold from your average order value, not from a round number you like. A common starting point is roughly 15 to 25 percent above current AOV: high enough to pull spending up, low enough that a meaningful share of carts can realistically reach it. Set it too far above AOV and most shoppers ignore it; set it below AOV and you simply give away shipping on orders that would have happened anyway.
The honest caveat is margin. Free shipping is not free; you are absorbing the cost, so the extra item a shopper adds has to cover the delivery you are now eating. Check that the gross margin on the incremental spend clears your real shipping cost, and watch heavy or bulky low-margin products closely, since those are where a generous threshold quietly erodes profit.