Hi there! 👋

Have we officially moved past free shipping for every order?

If not, it’s time.

The unit economics on small orders suck.

Free shipping on every order sounds great, but it's a margin killer on those tiny purchases.

Consider setting a free shipping threshold.

Look at your historical AOV and set the threshold at 125% of that.

Why? It works wonders. Here's how:

→ Taxes small orders, your “Minnows”: These are the low-value orders. By setting a threshold, you’re essentially adding a premium on small purchases. It filters out the least profitable sales.

→ Creates a high-margin revenue stream: When small orders don’t meet the free shipping threshold, you charge for shipping. Instant high-margin revenue on these orders.

→ Encourages larger baskets: Customers are motivated to add more to their cart to qualify for free shipping. This increases your AOVs and net revenue.

Sure, it might decrease conversions a bit, but you’ll win on overall revenue and, more importantly, margin.

Your team might want to test it or resist the idea. Just try it for a couple of weeks. It's easy to undo if it doesn’t work.

This hack has generated a significant amount of new revenue for every business I’ve worked on.

It's simple, effective, and boosts your margins without alienating customers.

Try it. See the difference.

Stay tuned, have a great Sunday!

Erik

Whenever you’re ready, there are three ways I can help you.

1. 1:1 Advisory for E-Com Managers: I help you run, scale & optimize your e-commerce business.

2. Resource Library. Useful resources for every marketer. Includes an E-Commerce Audit Report, ChatGPT Prompt Guide & Midjourney Masterclass.

3. Book a 1:1 Call. A No Bullshit 20 min Ask Me Anything call. If you’re facing challenges in online business, I’m happy to talk.

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