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Free shipping threshold

A free shipping threshold is the order amount from which a store delivers for free, while customers with smaller orders pay the standard delivery rate.

How it works

Above the threshold, the store pays for delivery out of the profit on the order. A customer close to the line can add an item to cross it, so the threshold can raise average order value. There is no single benchmark: the right level depends on average order value, margin, what a parcel costs the store and competitors’ delivery terms.

Products that meet the free shipping condition can carry a free shipping note in Google Shopping ads, if Merchant Center knows the threshold. Our guides cover setting a free shipping threshold and its place in pricing on Google Shopping.

Formula

Extra order value that pays for a free parcel = parcel cost ÷ margin

Where you see it

  • Merchant Center, account level: free shipping over an order amount, set in the shipping settings with a shipping rate table. These rates should match the site, or Google can warn about inaccurate shipping costs or disapprove products.
  • Merchant Center, product level: with per-product shipping, the free_shipping_threshold attribute: a country plus a price threshold.
  • In the ad: a free shipping note on products that meet the condition.

Example

Example store, not client data.

The tableware shop’s average order is 600, its margin is 35%, and a parcel costs it 70. Extra order value that pays for the parcel = 70 ÷ 0.35 = 200. With a threshold of 800, an order of 600 needs exactly 200 more to qualify, and that extra 200 brings 200 × 0.35 = 70 of gross profit. If an order crosses the line with less extra value, the rest of the parcel comes out of the profit it already had.

Right and wrong readings

  • Wrong: “With free_shipping_threshold at 800, every ad shows free shipping.” Right: Google checks this attribute against the product’s own price, not a cart. A dinner set at 600 shows the standard rate, and only products whose own price meets the threshold get the free shipping note.

Sources