Plan a promotion around a minimum order threshold
Estimate whether larger baskets cover the cost of the offer.
Calculate the cost at the threshold
A free-shipping offer begins at $60. If variable costs before shipping are $36 and the merchant pays $8 shipping, contribution at the threshold is $16 before ads. Check how this compares with the contribution on a normal order.
Check behavior just below the threshold
Some buyers add a small item to qualify. Estimate its contribution and the new shipping cost, including any weight changes. A threshold that increases basket value can still reduce total contribution if it subsidizes orders that would have happened anyway.
Test the offer with clear terms
Display the threshold and eligible destinations before checkout. Compare settled orders, contribution, and abandonment with a suitable baseline. Review whether the threshold creates confusing or unhelpful add-on behavior.
Try a related tool
Compare revenue per advertising dollar with the return needed to cover ad spend. Enter net revenue and contribution margin before ads.
