Shipping: free, flat-rate, or calculated — the math per order
Guilherme Rocha · 2026-10-07
Free shipping threshold
Set a free shipping threshold that makes sense for your business. Ideally, it should be 10% to 20% above your store’s average order value. For example, if your average order value is R$100, consider offering free shipping on orders over R$110 to R$120. This encourages customers to add more products to their cart, increasing your average order value. Use FreeSpy to analyze competitors and adjust your threshold to stay competitive.
Flat-rate shipping on COD
If your store offers flat-rate shipping, especially with payment methods like COD (Cash on Delivery), keep the cost affordable. Rates between R$10 and R$20 are usually well received. Flat-rate shipping makes the user experience simpler, but be careful: it shouldn’t be so high that it discourages purchases. Run A/B tests to find the ideal price that won’t hurt conversions.
Shipping as an upsell lever
Use shipping as an upsell strategy. For example, offer a shipping discount if the customer buys a second item. Another tactic is to let customers know that free shipping applies to orders over a certain amount, encouraging them to add more products to their cart. This can increase average order value by up to 30%, depending on the product category.
Show the actual delivery time
It’s crucial to show the actual delivery time at checkout. Customers value transparency and knowing when to expect their order. If delivery takes longer than usual, make that clear and consider offering some kind of compensation, like a shipping discount on future purchases. Cart abandonment rates drop significantly when customers know what to expect.
Impact on returns
Shipping can directly impact return rates. Free shipping can increase returns because customers may buy more items just to try them out. To minimize this, implement clear and fair return policies. Consider a reduced return fee or free shipping on future purchases as a way to build customer loyalty and minimize the financial impact.
When setting up your shipping policies, always analyze customer behavior and adjust your strategies. Balancing costs and benefits is key to maximizing average order value and customer satisfaction.
What free shipping threshold do you use in your store?