Free Shipping Can Cost More Than Customers Value It
Menard challenges the assumption that every order needs free shipping. He argues that its perceived value may be lower than its cost to the brand and suggests testing a minimum-spend threshold, particularly for low-order-value or one-time-purchase products.
- Free shipping is often treated as mandatory without testing
- Its brand cost may exceed its customer-perceived value
- A spend threshold can protect margin and encourage a higher order value
- Menard frames the conversion effect as a testable expectation, not a guarantee
“the perceived value of free shipping to the customer is lower than what shipping costs to the brand”
“an easy way to test this is add a threshold to get free”