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What is free shipping? E-commerce definition

What is free shipping? E-commerce definition

E-commerce free shipping: definition, AOV cart threshold, vs express Shopify configuration, margin conversion, and common practices.

Updated on

June 4, 2026

Free shipping (free shipping, carriage free) means that the customer pays no shipping fees at checkout: the "Shipping" line displays €0. The actual cost (Colissimo, Mondial Relay, etc.) is absorbed by the merchant or integrated into the product price. A major conversion lever, it is often configured with a cart threshold ("free from €60") to preserve the margin while increasing the AOV.

Summary

Free shipping definition

In e-commerce, free shipping = the customer does not see a positive shipping costs line at checkout. The transport is still invoiced by the carrier to the merchant; only the invoicing on the buyer's side changes.

Common models:

The concept is best understood by distinguishing several elements: : €0 shipping on all orders (cost absorbed or increased product price); : €0 starting from €X of shopping cart ("Free shipping over 75 €"); : Free within mainland France, international paid; : bestsellers or subscriptions; : voucher "SHIPPING0" (); : free shipping with Colissimo, Chronopost as an extra (); : "shipping included" display without a separate line.

Useful distinctions:

The concept is best understood by distinguishing several elements: vs : €0 charged vs €2.90 (strong psychological impact); vs : outbound transport vs after-sales return (distinct matters); vs : €0 checkout ≠ free logistics for the store; vs : free shipping is a pricing rule; shipping remains the ops process; vs : encouraging volume vs reducing item price; vs : free shipping for all customers vs loyalty members.

Why free shipping influences online sales

Shipping costs are one of the leading causes of cart abandonment. Amazon Prime and marketplaces have accustomed consumers to "free" or total transparency.

Its main effects are found on several levels: : eliminate shipping friction at checkout (); : threshold encourages adding an item to cross the line; : hero marketing argument, banner, product page; : no surprise on the final screen (); : "Free delivery this weekend" as a campaign hook; : value perception, especially if standard delivery time is acceptable; : poorly calibrated free shipping erodes profit if carts are small.

Free shipping is not always the optimal strategy: a low-margin SME may prefer a transparent flat-rate shipping cost (€4.90) rather than complete free shipping that turns every order into a logistical loss.

Cart threshold and economic balance

Calibrating a "free from €X" threshold:

The process can be summarized as follows: first, Measure actual average shipping cost (carrier); then Set the threshold (e.g., AOV €52 → threshold €65-75); next, Verify product margin: does the cart surplus cover the shipping?; then Test cart progress bar: "Only €12 left for free shipping"; finally, Compare order rates with free vs. paid shipping over 4 weeks.

Simplified mental formula: if average order margin = €25 and shipping cost = €5.80, free shipping "costs" €5.80 unless the customer adds enough margin via a threshold-linked upsell.

In practice, a Shopify cosmetics shop, AOV €48, Colissimo cost €5.50. Before: flat rate shipping €4.90 (nearly zero shipping margin). Redesign: free from €59, otherwise €5.90. Site banner and Liquid/JS cart bar: "Free shipping from €59". Observed result: AOV increases to €61, share of orders with free shipping rises, net margin remains stable because the added items (miniatures) have a good margin. Chronopost express option remains paid (+€12). Newsletter promo code "WELCOME" = free shipping without threshold (acquisition, single use).

Alternative: include shipping in the product price (+€6 on the product page) and announce "shipping included everywhere in France". Simple for the customer, but price comparison vs. competitors becomes more difficult.

Set up free shipping on Shopify

Shopify configures free shipping in Settings > Shipping and delivery (Shopify Help Center).

In Shopify, this is reflected in: : €0 rate if cart ≥ threshold (e.g., €75); : permanent free shipping on a zone; : "Standard €5.90" + "Free (orders €75+)" via price conditions; : native Shopify promo code for free shipping; : free shipping only on certain products (dedicated profile); : different thresholds by country; : cart progress bar, threshold estimator, checkout messages.

Shopify Checklist:

The process can be summarized as follows: first, Create a France zone with a conditional free rate ≥ threshold; then Keep the paid rate below the threshold (avoid accidental free shipping); next Display the threshold on the home page, product page, cart (); then Test checkout: €40 cart, €80 cart, free shipping promo code; finally Shipping policy page: zone conditions, overseas territories exclusions; then Monitor shipping cost / order in reports or BI.

International: avoid "free worldwide" if the actual cost is €15-25 per package. Free France + separate EU/international rate is financially healthier.

Points to consider to preserve margin

Points of vigilance include in particular: : encouraging upsell without cannibalizing margin; : header banner, cart bar, not just checkout; : preserving profitable urgent option; : average parcel weight, updated carrier rate grid; : DOM-TOM, far international; : single use, limited duration (acquisition); : AOV, checkout conversion, net margin.

To monitor:

Points of vigilance include in particular: Totally free without an economic model (Revenue ↑, profit ↓); Threshold below the AOV (80% free orders, shipping never profitable); Promising free shipping then showing €5.90 at checkout (abandonment); Forgetting that the customer still pays for the product: "free" ≠ €0 order; Free international shipping at domestic rates (systematic loss); Combining -30% product discount + permanent free shipping (double margin erosion); No plan B if the carrier increases rates (threshold never reviewed).

In brief

Key takeaways: = €0 shipping costs for the customer, cost absorbed by the merchant; Models: permanent, cart threshold, zone, promo code, free standard + paid express; Levers: conversion, AOV, marketing; risk: margin if poorly calculated; Shopify: price-based rates, free shipping discount, cart bar; Threshold > AOV, early communication, monitoring real shipping cost.

Associated terms, FAQ, and useful resources

Associated terms

FAQ

Free delivery and free shipping: same thing?

Yes. Free delivery, free shipping, and complimentary shipping indicate that the customer does not pay transport costs at checkout (€0 on the delivery line).

What threshold to choose for free shipping?

Set the threshold 10 to 20% above your current AOV, making sure that the margin on "add-on" items covers the average shipping cost. Adjust after one month of data.

How to activate free shipping on Shopify?

Admin > Settings > Shipping and delivery: add a rate based on the order price with an amount of €0 starting from the chosen threshold. Keep a paid rate below that.

Does free shipping reduce my margin?

Transport remains billed to the merchant. If shipping is offered without a threshold or sufficient margin, the margin drops. A well-calibrated threshold or adjusted product price can neutralize the impact.

Go further

Sources: Shop

Enzo

June 4, 2026

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