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Why Free Shipping Beats Every Other Promo Lever

Shabir Malik 3 min readJune 10, 2024

Psychology beats math

$10 off an $80 order tests worse than free shipping on the same order. Even though the customer pays more in the 'free shipping' scenario sometimes.

Threshold as AOV lever

Free shipping over $X lifts AOV 15-30%. A powerful nudge that converts low-value carts into mid-value ones.

When to avoid

Ultra-low-margin products where shipping is a real chunk of margin. Then a percentage discount or tiered shipping is better.

Keep reading — Ecommerce

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