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I’m trying to decide if I should switch from a flat-rate shipping model to a tiered system based on order value. My average order value has crept up, and I’m worried the flat rate is now eating too much into margins on larger orders, but I don’t want to scare off customers with a sudden price jump at checkout.

I ran a small test with tiered shipping: free on orders over 100, otherwise 6. After a month, the average order value climbed from roughly 85 to about 95, and revenue per visit steadied. A few bigger orders still paid a little more, which helped margins, but I noticed some customers paused at checkout.

I haven’t tried it yet, I’m wary of scaring price sensitive shoppers. We have a flat rate that feels fair to small carts, and any change would need a clear, upfront explanation at the cart.

A colleague tried something similar and said the biggest lift came from the free threshold rather than the rate itself; they had to keep messaging consistent to avoid confusion.

I did a quick gut check: if more orders cross into the free tier, the shipping cost drops and margins can improve, but you risk pushing edge cases into churn. Not perfect math, just gut feel.

I also worry the problem isn’t just shipping at all; we once fixed packaging and speed and saw a bigger bump in conversions than tinkering with rates. The shipping plan might be a symptom, not the cure.

Would you run a soft rollout first and track cart abandonments and time to checkout before flipping the switch?

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