Free shipping. At what cost?
Choose a contribution target, then check the merchandise value needed to cover delivery.
Sources and limits
Worked example. Check all costs before using your result.
Your figures
Other costs and assumptions
USD throughout. Your fee schedule, tax treatment and order dates matter. No store connection or upload.
See results ↓What these figures show
Check the marked fields before reading a result.
This is a cost threshold. Check whether real baskets can reach it.
Minimum basket for your target
$65.68Conditional on the entered costs. This is not a demand forecast or net-profit report.
- Basket that preserves current contribution
- $63.11
- Current contribution with shipping charged
- $4.05
- Contribution with free shipping at this basket
- -$0.80
- Extra basket value to reach your target
- $15.68
- Contribution lost if the basket stays the same
- $4.85
- Contribution at the calculated threshold
- $5.00
Check every input used
- Current product basket value
- 50 USD
- Product gross margin on sales
- 40 %
- Carrier cost per shipment
- 8 USD
- Contribution wanted per order
- 5 USD
- Payment and selling fee
- 3 %
- Fixed fee per order
- 0.3 USD
- Packing cost per order
- 1 USD
- Ad cost per order
- 10 USD
- Shipping currently paid by customer
- 5 USD
What if delivery costs rise?
The same product margin, fees and contribution target apply. Only carrier cost changes.
| Extra carrier cost | Minimum basket |
|---|---|
| $0.00 | $65.68 |
| $2.00 | $71.09 |
| $5.00 | $79.19 |
Formula, source and limits
Product gross margin is (product sales − product cost) ÷ product sales. Enter margin after product discounts, before the selling fee. It is not markup.
Net marginal rate = product gross margin rate − percentage selling fee. Minimum free-shipping basket = (carrier + packing + ad cost + fixed fee + target contribution) ÷ positive net marginal rate. Round the basket up to the next cent.
The preservation scenario retains the current basket contribution, including the shipping charge currently collected and its percentage fee. It assumes the same product mix and shipping cost.
This is a cost threshold, not an optimized conversion or AOV prediction. Product margin, weight, carrier prices and fee bases can change with the basket. Tax and refunds are excluded. A non-positive marginal rate has no finite threshold in this model.