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Free Shipping vs Discount Conversion Calculator

Fixed cost against a percentage cost.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
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Better offer

Free shipping

by $653 a month

Free shipping contribution$24,819
Discount contribution$24,166
Cost of free shipping$7,300
Cost of the discount$7,108

Free shipping costs a fixed amount per order and the discount costs a percentage, so free shipping wins on high-value baskets and loses on low ones. It also converts better than an equivalent discount in most tests, because shipping cost is the abandonment trigger people actually cite.

How the Free Shipping vs Discount Conversion Calculator works

Free shipping costs a fixed amount per order and a discount costs a percentage, so free shipping wins on high-value baskets and loses on low ones. It also converts better than an equivalent discount in most tests, because shipping cost is the abandonment trigger people actually cite.

Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.

Frequently asked questions

Which converts better, free shipping or a discount?

Free shipping usually, at equivalent cost. Shipping charges are the most frequently cited abandonment reason, so removing them addresses the objection directly.

When is a discount better?

On low-value orders, where a percentage costs less than the shipping does. A 10% discount on a £20 order costs £2; free shipping might cost £5.

Should free shipping have a threshold?

Usually. A threshold set just above current average order value converts the offer into an order-value lever as well as a conversion one.

Can I do both?

Yes, but not simultaneously on the same order — stacking them doubles the cost for a fraction of the extra conversion. Use one as the standard offer and the other for specific campaigns.

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