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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryRetail Media & CommerceFree Shipping Threshold

Retail Media & Commerce

Free Shipping Threshold

The minimum order value a shopper must reach to qualify for free shipping, used to raise average order value.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

A free shipping threshold is the minimum order value a shopper must reach to qualify for free shipping. Retailers set it, often somewhat above their typical order value, to encourage customers to add more items. It is a common tactic for raising average order value while managing shipping costs.