Work out free shipping break even instantly with clear inputs, formula shown and shareable results.
Absorbing shipping costs margin on every order, so it only pays if the conversion uplift brings in enough additional orders. The break-even uplift is shipping cost divided by the margin left after shipping.
Free shipping break-even
Required uplift = shipping cost / (order value × margin - shipping cost)
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
Because free shipping applies to every order including those that would have converted anyway.
Usually yes. It captures the conversion benefit while protecting margin on small orders.