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Will a higher free-shipping threshold improve order economics?
Balance basket expansion, shipping subsidy changes and lost orders for the affected cohort.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Affected monthly orders
- 10,000
- Current average basket
- $60
- Basket uplift among kept orders
- $12
- Product contribution margin
- 45 %
- Affected orders lost
- 8 %
- Current shipping subsidy / order
- $7
- New subsidy / kept order
- $5
Monthly threshold-change contribution
Example result only, not a forecast or promise.
- Current cohort contribution
- $200,000
- New cohort contribution
- $252,080
- Monthly affected orders lost
- 800
What to do with this result
Pilot threshold changes by basket segment and measure checkout abandonment, not just the AOV of buyers who remain.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Current contribution = orders × (basket × margin − old subsidy). New = orders × (1 − loss) × [(basket + uplift) × margin − new subsidy].
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use net collected sales and avoid double-counting returns, commissions or pass-through charges. Demand and customer behavior require validation.