A Guide to Online Sales and Free Shipping In 2025

Key takeaways: 

• Free shipping improves conversion rates by reducing cart abandonment and increasing customer trust. 

• Smart strategies like order thresholds and optimized packaging can help you offer free shipping without hurting your margins. 

• Tracking key metrics and testing offers ensures your free shipping strategy continues to drive sales and customer satisfaction. 

Shipping fees can have a major influence on whether someone completes a purchase. Many shoppers look for free shipping as a sign of convenience and value. When it’s not offered, they’re more likely to leave items in their cart and move on. 

This guide is built for online store owners, marketers, and fulfillment managers who want to improve sales and customer experience. You’ll learn what free shipping means, how it affects buying behavior, and practical ways to offer it without hurting your margins. 

If you’re looking to grow your business in 2025, a strong shipping strategy is a great place to start. 

What does free shipping mean? 

Free shipping means the customer doesn’t pay anything extra for delivery. But behind the scenes, there are different ways to structure it, and each one can impact your profit margins and how customers shop. 

The way you present shipping can shape how people view your products and pricing. Free shipping can feel like a bonus even if the actual cost is built into the product price. It reduces mental effort at checkout and removes the surprise of added fees. 

How it influences shopping behavior 

Shoppers tend to make quicker decisions when they see free shipping. It’s often associated with: 

• Better value 

• Increased trust 

• Fewer abandoned carts 

In short, the offer may seem small, but it has a big effect on how customers interact with your store. 

Types of free shipping offers 

Free shipping isn’t one-size-fits-all. There are different ways to structure it, each with its own pros and use cases. You can pick the right model depending on your goals and customer expectations. 

Here are the most common types of free shipping offers: 

• Sitewide free shipping. Everything in your store ships free, no matter the order size. It’s the simplest offer and easy to communicate but can be expensive if not priced carefully. 

• Minimum order threshold. Free shipping is unlocked when a customer’s cart hits a specific amount (e.g., “Free shipping on orders over $50”). This encourages larger purchases and helps protect your margins. 

• Member-exclusive free shipping. Offered through a loyalty program or paid membership (like Amazon Prime). It builds customer retention while providing recurring revenue and predictable shipping costs. 

Each model affects shopper behavior differently. You can also combine multiple types like sitewide free shipping during Black Friday and minimum order shipping the rest of the year. 

Benefits of offering free shipping 

Done right, free shipping is a massive sales driver. It influences how customers behave, how much they spend, and whether they come back to shop again. Here’s a breakdown of the main business benefits: 

• Higher conversion rates 

• Increased average order value (AOV) 

• Stronger customer loyalty and retention 

• Improved perception of value 

Let’s take a closer look at each benefit: 

Higher conversion rates 

Unexpected shipping fees are one of the top reasons shoppers abandon their carts. Free shipping removes that friction, making it easier for customers to hit the buy button. 

• A Baymard Institute study shows that 48% of abandoned carts are due to extra costs like shipping or taxes. 

• Research also shows that offering free shipping can increase conversion rates by up to 20–30%, especially when promoted clearly during the shopping experience. 

By eliminating last-minute costs, you keep checkout smooth and predictable, leading to more completed purchases. 

Increased average order value (AOV) 

When customers see a free shipping threshold, they often add more items just to qualify for it. 

• For example, “Free shipping on orders over $60” encourages shoppers with $45 in their cart to keep browsing. 

• One report found that 58% of consumers will add extra items to reach that minimum threshold. 

This tactic boosts both revenue and purchase volume without offering a straight discount on your products. 

Stronger customer loyalty and retention 

Free shipping builds trust, and trust builds repeat business. When customers have a smooth experience—no surprises at checkout, timely delivery, and fair pricing—they’re more likely to come back. 

• Shoppers are more likely to recommend brands that offer free shipping, even if the product costs a bit more. 

• Subscription models or loyalty tiers that include free shipping (like Amazon Prime) keep buyers engaged long-term. 

Repeat customers are more valuable than ever and free shipping is a proven way to win them over. 

Improved perception of value 

Even when the shipping cost is rolled into the product price, “free shipping” sounds like a deal. It’s a psychological trigger that increases perceived value without lowering your product’s worth. 

Customers associate free shipping with: 

• Convenience 

• Transparency 

• Premium customer experience 

These are subtle signals, but they play a big role in how customers view your brand. 

Should you offer free shipping on all products? 

Not every item needs to qualify for free shipping. In some cases, limiting your offer to certain products can help you protect your margins while still driving conversions. 

Here’s when it makes sense to be selective: 

• Heavy or oversized items. These can be expensive to ship and may not fit your free shipping model. 

• Low-margin products. Offering free delivery might turn these into loss leaders unless bundled with higher-value items. 

• Specialty or made-to-order products. These may take longer to ship, and buyers often expect to pay for the extra effort. 

• International orders. Shipping globally adds complexity and cost. Many sellers limit free shipping to domestic orders. 

If full-site free shipping isn’t sustainable, a hybrid model can still win customers. 

Why customers expect free shipping 

Free shipping has become a baseline expectation for most online shoppers. Years of buying from large retailers like Amazon have set the standard and customers now assume shipping should be included in the price. 

This expectation is tied closely to trust and convenience. When shoppers see “free shipping,” they’re more confident about their purchase because it: 

• Removes the surprise of extra fees at checkout 

• Makes the total cost feel more transparent 

• Adds perceived value to the product or store 

According to research, 84% of consumers are more likely to shop with a brand that offers free shipping. Even if the product price is slightly higher, they often see it as a better deal when no delivery fee is added. 

Free shipping also influences word-of-mouth and repeat behavior. Shoppers are more likely to: 

• Recommend stores that offer free shipping 

• Return to brands that make the checkout process easy and predictable 

At the end of the day, customers have come to expect free shipping with their purchases. Meeting that expectation can be the difference between making the sale or losing it to a competitor. 

Strategies to offer free shipping without losing profit 

Free shipping can attract more buyers but it shouldn’t eat into your margins. The key is to offer it in a way that supports your bottom line while still giving customers what they want. 

Here are a few smart ways to offer free shipping without hurting profits: 

• Set minimum order thresholds 

• Optimize fulfillment and packaging 

• Use plugins or platform features 

• Be selective with your offer 

• Test and iterate with low-risk offers 

Let’s break each one down: 

Set minimum order thresholds 

Encourage customers to spend more while covering shipping costs. 

• Choose a realistic minimum based on your average order value. For example, if most orders are $40, try setting free shipping at $60. 

• Test different thresholds to see what drives higher conversions without hurting profitability. 

• Example: “Free shipping on orders over $75” motivates shoppers to add just one or two more items. 

Optimize fulfillment and packaging 

Small changes in shipping operations can lead to big savings. 

• Use right-sized packaging to avoid dimensional weight charges. 

• Negotiate better rates with carriers like UPS, FedEx, or USPS especially as your volume increases. 

• Consider third-party fulfillment providers if they offer lower rates or faster delivery zones. 

Use plugins or platform features 

Most eCommerce platforms make it easy to set up smart shipping rules. 

• Shopify. Use built-in settings to apply conditional free shipping and hide other rates. 

• WooCommerce. Add plugins like Flexible Shipping or Table Rate Shipping to customize offers. 

• Add a progress bar during checkout to show how close a customer is to free shipping (e.g., “You’re $12 away from free shipping!”). 

These tools let you stay in control while creating a better customer experience. 

Be selective with your offer 

Not every item or region has to qualify for free shipping. 

• Limit free shipping to domestic orders if international costs are too high. 

• Apply it only to high-margin or best-selling products. 

• Avoid including oversized, heavy, or made-to-order items unless bundled. 

Test and iterate with low-risk offers 

If you’re a small business, you don’t have to go all-in from the start. 

• Run limited-time offers to test how your audience responds. 

• Use bestsellers as a hook—offering free shipping on those alone can boost conversions without sacrificing profit across the board. 

Common mistakes to avoid when offering free shipping 

Free shipping can boost sales, but if not planned well, it can also cut into your profits or confuse your customers. Here are some of the most common mistakes businesses make and how to avoid them: 

• Skipping the math. Don’t offer free shipping without calculating your average shipping costs and profit margins. 

• Setting unrealistic thresholds. If your free shipping minimum is too high, customers won’t try to reach it. Too low, and you lose money. 

• Hiding the offer. Free shipping that isn’t clearly visible on your site won’t motivate buyers. 

• One-size-fits-all approach. Some products or regions may not be cost-effective to include. 

• Forgetting about returns. Free shipping encourages purchases, but it can also mean more returns. Be sure to factor that into your strategy. 

Mistakes like these can make your offer backfire but they’re easy to avoid with a little planning. 

How to promote free shipping offers effectively 

Once you’ve set up your free shipping offer, the next step is to make sure people know about it. A well-placed message can nudge visitors toward buying, especially if they’re on the fence. 

Highlight your free shipping offer 

Make your free shipping offer visible across your site. 

• Use banners on your homepage or announcement bars at the top of every page. 

• Add callouts on product pages like “Free shipping on orders over $50.” 

• Include reminders in the cart or at checkout, especially if they’re close to qualifying. 

• Use urgency when relevant: phrases like “Ends Sunday” or “This week only” can drive faster decisions. 

The goal is to keep the offer top-of-mind without interrupting the shopping experience. 

Promote your offer through email and social media 

Don’t rely on your website alone. Promote your offer where your customers already spend time. 

• Email your list with clear, benefit-focused subject lines like “Free Shipping Starts Now” or “Unlock Free Delivery on Your Next Order.” 

• Highlight new promotions in your social posts, stories, and ads. 

• Use simple visuals that clearly communicate the shipping threshold and any time limits. 

Track which messages get the most engagement so you can adjust future campaigns based on what works best. Data from Campaign Monitor indicates that emails with ‘free shipping’ in the subject line see a 10–20% boost in open rate. 

What are the hidden costs of free shipping? 

While free shipping helps you win more sales, it comes with trade-offs that are easy to overlook. Being aware of them helps you plan better and protect your margins. 

Watch out for these hidden costs: 

• Return shipping and restocking. Higher order volume often leads to more returns, which eat into profit. 

• Lower margins on bundled products. If you include free shipping without raising prices, you may lose money on low-margin items. 

• Packaging and fulfillment overhead. Volume increases can require more staff, time, or outsourcing. 

• Customer service time. More orders = more inquiries, especially around delivery. 

By tracking your total costs and testing your strategy, you can stay ahead of these risks while still offering a great deal. 

How to measure and improve your free shipping strategy 

Offering free shipping is only part of the strategy. To know if it’s working, you need to measure how it’s affecting your sales, behavior, and margins. Tracking the right metrics helps you fine-tune your offers over time. 

Monitor key KPIs 

Start by keeping an eye on metrics that show how free shipping affects customer actions: 

• Cart abandonment rate. Are fewer people leaving at checkout? 

• Average order value (AOV). Are customers adding more to their carts? 

• Conversion rate. Are more visitors completing purchases? 

• Return rate. Is free shipping leading to more returns? 

These numbers tell you whether the offer is helping or needs adjusting. 

Use analytics tools 

Most eCommerce platforms give you built-in analytics, but you can go deeper with tools like: 

• Google Analytics. Tracks checkout behavior, funnels, and traffic sources. 

• Shopify reports. Breaks down how free shipping impacts sales by product, customer group, or campaign. 

• Heatmaps (e.g., Hotjar, Crazy Egg). Shows where users click, scroll, or stop engaging on your site. 

Using a mix of tools gives you a full picture of what’s working. 

Run tests and optimize 

Free shipping doesn’t have to be set in stone. You can experiment to find what gets the best results. 

• A/B test different thresholds (e.g., $50 vs. $75) to see what drives higher spend. 

• Try different banner placements or progress bars at checkout. 

• Test urgency messages like “Today only” vs. “Limited time” to see what motivates customers more. 

The more you test and refine, the better your free shipping strategy becomes. 

Future trends in free shipping and eCommerce fulfillment 

The way customers think about shipping is changing. Faster delivery, smarter logistics, and eco-friendly options are quickly becoming part of what shoppers expect. Here are three trends to watch as you shape your strategy moving forward. 

Faster delivery windows 

Customers are getting used to quicker delivery times, especially for common products and repeat orders. Offering fast shipping can make your store more competitive. 

• 2-day and same-day shipping are rising in popularity across major eCommerce platforms.  

• A PwC survey found that 41% of consumers say fast and reliable shipping is the top reason they choose where to shop online.  

• Consumers often check delivery speed before making a final purchase. 

• Using multiple warehouses or third-party logistics (3PLs) can help reduce shipping zones and costs. 

Smarter logistics with AI 

New tools are helping businesses streamline their shipping operations. With AI, eCommerce sellers can make faster, data-driven decisions. 

• AI can suggest the best fulfillment center based on the customer’s location. 

• Predictive analytics help forecast inventory and shipping demand. 

• Automation reduces errors and helps cut down on delivery times. 

Sustainable shipping options 

Sustainability is no longer optional for many shoppers. More buyers are factoring eco-friendly practices into their purchasing decisions. 

• Carbon-neutral shipping programs offer a way to offset emissions. 

• Recyclable and compostable packaging can reduce waste and improve brand perception. 

• Giving customers the option to choose slower, greener delivery can support long-term loyalty. 

Free shipping is a key part of how people shop online today. It affects whether customers buy, how much they spend, and whether they come back. When done thoughtfully, it can help your business grow without cutting into your profits. 

Make free shipping work for your store 

Start by understanding what your customers expect, then build a strategy around your products, pricing, and fulfillment setup. Test different offers, track what works, and adjust along the way. 

If you’re looking to launch or improve your online store, our eCommerce Website Builder gives you the tools to build a site that supports practical shipping strategies. You can set up products, manage orders, and customize shipping options to suit your business all in one place, with no coding needed. 

Frequently asked questions