Here’s what I see at almost every ecommerce store in Lebanon and the Gulf: free delivery on all orders, even on low-ticket products. Store owners do this because they’re scared the customer will drop off at checkout the second they see a delivery fee added on.
The problem is that this “fix” quietly costs you money. In the Lebanese market it usually adds up to an extra $3-5 per order, and the Gulf isn’t far off. You’re not solving the drop-off problem, you’re just paying for it every single time.
There’s a better way. One where the customer still gets their free delivery, and you still get more profit per order.
What Is a Free Delivery Threshold
A free delivery threshold means you offer free shipping once the cart hits a certain amount, instead of giving it away on every order regardless of size.
The setup itself is simple. Any ecommerce platform can do it in a few clicks. The hard part is picking the right number.
Set it too low, and you’re basically giving free delivery on everything anyway, which drags your average order value down with it. Set it too high, and customers won’t bother chasing it, so it stops doing anything for you.
How to Find Your Correct Threshold
Open your analytics and pull your average order value (AOV) from the last 30 to 60 days. That number is your starting point.
There’s no single “correct” amount, since it depends on your product costs and margins too, but as a general rule, set your threshold 20% to 40% above your current AOV.
That range is high enough to actually push customers to add more to their cart, but not so high that it feels unreachable.
A Real Example: Nose Tape
Say you’re selling nose tape. One unit costs $12, and delivery is $4 on top.
Two units cost $24, but you offer free delivery above $20.
Now the math flips in your favor. The customer realizes they’re effectively paying $12 per unit delivered instead of $16 if they’d bought one and paid for shipping. So they go for the two units, get their free delivery, and walk away happy.
You just increased your order value, kept your customer acquisition cost exactly the same, and made more profit from the same customer, same order, same ad spend.
When Free Delivery on Everything Still Makes Sense
This isn’t a “never offer free delivery on all orders” rule. There’s one case where I still do it myself: high-ticket products with a low delivery cost.
If I’m selling a necklace for $140 and delivery only costs $4, I can absorb that fee without thinking twice. It’s a rounding error against the order value, and it removes any friction at checkout. In that case, free delivery on everything is the right call.
The threshold strategy matters most on lower-ticket items, where a flat delivery fee eats a big chunk of the order and either scares the customer off or quietly eats your margin.
The Takeaway
Free delivery isn’t the problem. Giving it away without a strategy is. Pull your AOV, set your threshold 20-40% above it, and let the math work in your favor instead of against it.
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