How to Test Shipping Prices Without Killing Conversion
A step-by-step guide to experimenting with shipping costs by Daphne Tideman
Shipping thresholds are one of the most underrated yet powerful levers in eCommerce. Set them too low, and you bleed margin. Set them too high, and you risk abandoned carts.
So, how do you know when it’s time to test … and what exactly to test?
The general rule of thumb is that if your Average Order Value is near or above your free shipping threshold, you might be charging too little. Now, as with anything, there are always exceptions, for example:
You sell a single product that customers rarely purchase more than once
You offer subscriptions, where free shipping is often expected as part of the commitment
You’re in a category where free shipping is the norm
You might also test thresholds if low AOVs are hurting your margins. In this case, shipping rates are one of many tools to improve your margins.
Pre-requisites to testing around shipping thresholds
If you’re one of those websites where customers have to get all the way to checkout—and enter their address—just to see shipping costs… First of all: shame on you. Whether or not you’re testing shipping, that needs fixing.
Clarity upfront not only improves the customer experience but also impacts the success of your tests. I get so frustrated in those moments, and I know I’m not the only one.
Measuring performance
Don’t panic if conversion rates dip. If AOV or revenue per visitor increases enough to offset the drop, you’re still winning. The goal isn’t just more orders, it’s more profitable ones.
Tools like Convert can help you track revenue per visitor, which serves as a strong proxy for profit. Just be sure to cross-check with actual margin data, especially if your margins vary, since a higher AOV doesn’t always mean higher profitability.
Here are your five steps to testing shipping thresholds:
Determine your baseline: What are your current AOV, conversion rate, and shipping costs?
Define your hypothesis: What insights or data drive the change you want to test?
Choose your test increment: For example, raise the threshold from £40 to £50, or test multiple thresholds to find the sweet spot.
Define your metric: Ideally, use profit per visitor. If that’s too complex, revenue per visitor is a solid proxy.
Deep dive into the data: Analyze not just conversion and AOV, but actual profitability and customer segments to fully understand the impact.
Get creative in your approach
It’s not just the minimum AOV you can test—there are other levers worth exploring:
Shipping tiers based on product types or fulfilment costs
Delivery options, like offering premium shipping for faster delivery
Framing, or how you communicate shipping costs and thresholds
The key is to go beyond just tracking conversion rate. Focus on revenue per visitor and, when possible, profit per visitor.
A small dip in conversions is okay if the orders you do get are more valuable and you’re building a healthier, more sustainable business. Don’t be afraid to scare off one or two customers for the greater good of your business.
To read Daphne Tideman’s full guide visit the Convert Blog, “How to Test Shipping Prices Without Killing Conversion.”