Shipping threshold offer

Before

After

Hypothesis

By adjusting the shipping threshold offer to $80, we will: • Increase AOV by incentivizing customers to add more items to cart to unlock free shipping. • Maintain or improve conversion rate by reducing checkout friction and aligning with psychological price anchors. • Thereby increase revenue per visitor (RPV) and overall profitability, as customers perceive higher value from their purchase.

What we learned

Conversion & Revenue: • CVR: +5.93% (2.255% → 2.389%) • RPV: +9.46% ($2.32 → $2.54) • PPV: +9.95% ($1.78 → $1.95) • AOV: +3.33% ($103.02 → $106.45) • Est. +273 orders/month · Est. +$44,772 revenue/month Statistical Note: Confidence level: 90.3% (one-tailed z-test, $120 vs $75). Below 95% threshold. CI: -3% to +15%. Called as directional winner, all metrics positive, AOV lifted as intended, monthly RPV impact material. Key Learnings: ✅ $120 threshold grew AOV without hurting CVR: Raising the bar pushed buyers to add items to qualify, lifting basket size by 3.33%. CVR held and improved, the threshold was not perceived as out of reach. ✅ $100 threshold was a non-event: Too close to existing AOV ($100.26) to stretch buyer behaviour. Customers near the threshold were already qualifying without needing to add anything. ✅ RPV is the key metric here, not CVR alone: The goal was AOV lift without CVR loss. $120 delivered both. RPV up 9.46% confirms the threshold change was net positive for revenue per visit. ⚠️ Confidence below threshold: 90.3% directional. Monitor AOV and CVR post-launch to confirm the basket-stretching behaviour holds at scale. Recommendation: WINNER, Ship Variation 2 ($120) Drop $75 and $100. $120 is the right threshold: high enough to stretch AOV, not so high it creates friction.