[{"data":1,"prerenderedAt":156},["ShallowReactive",2],{"nav-latest-post-en":3,"tool-free-shipping-en":8},{"stem":4,"title":5,"category":6,"cover":7},"en\u002Fblog\u002Fppwr-empty-space-ecommerce-parcels","PPWR and empty space: what the EU regulation actually changes for your parcels","E-commerce","\u002Fassets\u002Fblog\u002Fppwr-taux-de-vide-colis-ecommerce.jpg",{"id":9,"blocks":10,"extension":147,"meta":148,"seo":149,"slug":153,"stem":154,"__hash__":155},"pages_en\u002Fen\u002Fpages\u002Ftools\u002Ffree-shipping-threshold-calculator.yml",[11,15,40,79,102,123],{"type":12,"parent":13,"current":14},"breadcrumb","Tools","Free shipping threshold calculator",{"type":16,"label":17,"title":18,"intro":19,"aovLabel":20,"aovHint":21,"marginLabel":22,"marginHint":23,"shippingLabel":24,"shippingHint":25,"recommendedLabel":26,"breakEvenLabel":27,"marginAtLabel":28,"atAovLabel":29,"invalidLabel":30,"aboveAovText":31,"breakEvenBindsText":32,"sensitivityTemplate":33,"currency":34,"decimalSep":35,"initialAov":36,"initialMargin":37,"initialShipping":38,"note":39},"tool-free-shipping","Free tool","At what order value \u003Cem>should shipping be free?\u003C\u002Fem>","Three numbers is all it takes. The tool works out the order value at which your margin covers delivery, and the threshold to display in your store to pull average orders up.","Your average order value","The average order total, excluding shipping","Your gross margin","What is left after the cost of goods, as a percentage of the order","What one shipment costs you","The price you pay the carrier, packaging included","Recommended threshold","Break-even threshold","Margin left at that threshold","Margin on an average order","Fill in the three fields to see your threshold.","Set above your average order: the threshold does more than break even, it pulls baskets up.","Here break-even is what binds: below this amount, free shipping costs you money.","A {delta} gap on your real shipping cost moves the break-even threshold from {from} to {to}.","€",".",60,40,6,"The calculation works on gross margin, before fixed costs. It gives you a profitability floor, not a profit forecast.",{"type":41,"tocLabel":42,"toc":43,"cta":53,"sections":60},"tool-guide","On this page",[44,47,50],{"label":45,"href":46},"How it is calculated","#method",{"label":48,"href":49},"What a parcel costs you","#real-cost",{"label":51,"href":52},"Frequently asked questions","#faq",{"icon":54,"title":55,"sub":56,"label":57,"href":58,"note":59},"\u002Fassets\u002Ficon-parcelrush.svg","Try ParcelRush","10 free labels, and your real cost per parcel.","Get started →","https:\u002F\u002Fapp.parcelrush.com\u002Fcreate-account","No card and no subscription.",[61,70],{"id":62,"label":63,"title":64,"intro":65,"body":66},"method","The method","Two thresholds,\nand only one that binds","The tool works out both, and shows you the one that constrains you. Here is what each of them means.",[67,68,69],"The first is the break-even threshold, and it is arithmetic: your gross margin has to cover the cost of the shipment, so the minimum order is shipping cost divided by your margin rate. At €6 of shipping and 40% margin, delivery pays for itself from €15 an order. Below that amount, every order you ship free eats into your margin instead of building it.","The second is the recommended threshold, and it follows the industry convention: set free shipping 20 to 30% above your average order value. A threshold below that average is met on its own and changes no behaviour at all, you have merely stopped charging for shipping the customer was already paying. Set a little above, it gives a reason to add an item.","The tool takes whichever of the two is tighter. If your margins are comfortable, the average-order convention decides. If they are tight or your parcels bulky, the accounting break-even takes over, and the tool flags it under the result.",{"id":71,"label":72,"title":73,"body":74,"bullets":75},"real-cost","The missing number","What does a parcel\nactually cost you?","You already know the first two numbers: your average order is in your back office, your margin is in your product data. The third is the one almost nobody can produce. Every carrier invoices separately, surcharges land at the end of the month, and volumetric weight bills the space rather than the scale. So the average cost of a shipment gets rebuilt by hand from several invoices, and most merchants are working from an estimate. Without that number, the threshold you just calculated rests on a guess.",[76,77,78],"Average cost per parcel, over 7 days, 6 months or 1 year","Rates compared live on your own carrier accounts","Surcharges and volumetric weight included in the cost shown",{"type":80,"id":80,"label":81,"title":82,"items":83},"faq","FAQ","Questions about\nfree shipping thresholds",[84,87,90,93,96,99],{"q":85,"a":86},"At what order value should you offer free shipping?","There is no universal number: it depends on your average order value, your margin and the real cost of a shipment. The method is to work out the break-even threshold first, that is shipping cost divided by your gross margin rate, then take the higher of that threshold and your average order marked up by 20 to 30%.",{"q":88,"a":89},"How do you calculate a free shipping threshold?","Break-even threshold = shipping cost ÷ gross margin rate. At €6 of shipping and 40% margin, that gives €15. It is the order value at which your margin covers delivery. The threshold you display in store then sits above your average order, to encourage customers to top up their basket.",{"q":91,"a":92},"Does free shipping really raise average order value?","Only if the threshold sits above your current average order, and only if it is visible in the cart. A threshold that is already met by default changes no buying behaviour: it simply makes you give up revenue. Showing how much is left to add is what triggers the extra item.",{"q":94,"a":95},"Should packaging be included in the shipping cost?","Yes. The box, the filling and the label are part of what an order costs you to ship. Leaving them out lowers your break-even threshold artificially, and has you shipping free on orders that do not pay for it.",{"q":97,"a":98},"Does this calculation account for fixed costs?","No. It works on gross margin, before rent, salaries and subscriptions. That is deliberate: it gives you the floor below which a free-shipped order loses money, not a net profit forecast.",{"q":100,"a":101},"How do you find the real cost of a shipment?","By reconciling each carrier's invoices against the matching orders, surcharges and volumetric weight included. That is workable by hand across a few dozen parcels, much less so beyond. ParcelRush shows that average cost per parcel automatically, from your own carrier accounts and your negotiated rates.",{"type":103,"title":104,"body":105,"image":106,"imageAlt":107,"width":108,"height":109,"cta":110,"secondary":112,"notes":115},"cta-app","Take the stress out of shipping with ParcelRush","The dashboard shows your average cost per parcel, carrier by carrier, calculated on your own negotiated rates. Over 7 days, 6 months or a year, with destinations and delivery issues. That is exactly the number your calculation was missing: your threshold stops being an estimate.","\u002Fassets\u002Fparcelrush-shipping-analytics.jpg","ParcelRush dashboard: average cost per parcel, most-used carriers, destinations and delivery issues",3440,2080,{"label":111,"href":58},"Start for free →",{"label":113,"to":114},"View pricing","\u002Fpricing",[116,118,120],{"label":117},"10 free labels",{"label":119},"No subscription",{"label":121,"to":122},"GDPR compliant","\u002Fcompliance",{"type":124,"label":125,"cards":126},"product-related","Related to this calculator",[127,132,137,142],{"icon":128,"title":129,"desc":130,"to":131},"chart","Reduce your shipping costs","The levers that bring the cost per parcel down, at your volume.","\u002Fblog\u002Freduce-ecommerce-shipping-costs",{"icon":133,"title":134,"desc":135,"to":136},"box","Volumetric weight","Why you pay for space rather than the scale, carrier by carrier.","\u002Fblog\u002Fvolumetric-weight-how-to-calculate",{"icon":138,"title":139,"desc":140,"to":141},"link","Shipping Platform","Compare your negotiated rates live on every order.","\u002Fshipping-platform",{"icon":143,"title":144,"desc":145,"to":146},"activity","Delivery Experience","Tracking, issue alerts and returns in one dashboard.","\u002Fdelivery-experience","yml",{},{"title":150,"description":151,"ogImage":152},"Free Shipping Threshold Calculator: What Order Value? | ParcelRush","Work out the order value at which you can offer free shipping without losing money. Break-even threshold, recommended threshold and margin left, from your own numbers.","https:\u002F\u002Fparcelrush.com\u002Fassets\u002Fog-parcelrush.jpg","tools\u002Ffree-shipping-threshold-calculator","en\u002Fpages\u002Ftools\u002Ffree-shipping-threshold-calculator","GQXXdoWV09Lks-lOf6LtKyifrBCD2qssk71uARR3bpo",1787133055778]