Cart minimums are a great tool to get your customer to increase the order volume (AOV). How does it work with Flexport? When you set a Cart Minimum, the shipping method you're configuring will not be offered for free until the cart reaches the threshold you set. Thus your customers will be encouraged to add more items to their cart to unlock free shipping.
Additionally, when your customer does not reach the cart minimum, they pay the shipping rate you set in your Shopify account (Settings > Shipping and delivery > Manage rates). For more information on this Shopify setting, please see Shopify’s Help Center article, Setting Up Shipping Rates.
The advantage? Whether they choose to increase AOV or cover the cost of shipping, it means more revenue.
Here’s an example of what a Fast Tag Badge with a cart minimum looks like (Learn more about this seller in this case study):
Things to note
- Cart minimums are only available for Shopify stores with US Dollars as the primary currency.
Coupons and promo codes are not a factor in the total cart value, as far as Fast Tags are concerned. For example, if a cart value is $50 before a $10 coupon is applied, we will consider the value to be $50 after the coupon is applied. Though your customer will spend $40, they will still receive fast shipping.
Cart Minimums will only work when all products in the cart have Fast Tag badges (if not, we'll ask your customer to first split up their purchase to get fast shipping for those items with Fast Tags).
How do I set my cart minimum?
If this is your first time setting up Shopify Fast Tags, you will have the opportunity to set your Cart Minimum when you activate Fast Tags for the first time. For Shopify, see these instructions for initial Fast Tag setup.
If you’re using a website integration other than Shopify, make sure you:
- Sign up for our Website Fast Tag program
- Follow this guide to manually add Fast Tags to your listings
- Open a ticket with our Support team if you have questions
How do I edit my Cart Minimum?
Edit your Cart Minimum in your Seller Portal:
- Select ‘Shopify Fast Tags’ in the left sidebar menu (if you have multiple Shopify stores connected with Flexport Fast Tags, you will instead have the option of selecting the specific store name)
- Scroll down to the ‘Charge Methods’ section (at the bottom)
- Enter a Cart Minimum and/or an amount to charge for shipping when the Cart Minimum is not reached
- Click ‘Save changes’
Best practices for Cart Minimums
There is a downside to Cart Minimums: cart abandonment. If you don’t provide unconditional free and fast shipping, your customer may abandon their cart. Thus the lift that you experience from our badges will be lower. We have seen an average drop of 24% in lift relative to the original lift. So if your badges experienced an overall conversion rate lift of 40%. The resulting lift after Cart Minimum would be around 30%.
With that said, we understand that the primary objective is often to be margin positive. If the price you pay to produce the goods is 70% of the retail value or higher, we advise you to enable the Cart Minimum. Our sellers currently set their thresholds in the range of 1.8x their most popular product price. And the price for paid shipping, around $3.5. It may take some trial and error, so if you see sales falling after establishing a Cart Minimum, consider lowering the threshold.