What to offer as a free gift with purchase on Shopify

Setting a minimum spend is quick. Deciding what to give is where most free gift offers go wrong. A gift that costs too much eats the extra margin the offer was meant to earn. A gift nobody wants does not move shoppers to add one more item. This guide gives you a way to choose.

#Start from the cost, not the idea

A free gift costs you the product cost, plus packing, plus any extra postage it adds. Work that out first, because it limits which ideas are even possible.

The break even minimum spend is your average order value plus the gift cost divided by your margin. With an average order of 50, a gift costing 5 and a 40 percent margin, that is 62.50. If the same gift cost 10, the break even moves to 75. A gift that costs twice as much asks for a higher minimum, and a higher minimum means fewer shoppers reach it.

These are made up round numbers. Put in your own with the free gift threshold calculator linked at the end.

A good gift is cheap for you and clearly worth having for the shopper.

#What makes a gift work

• It is cheap for you. Small, light items keep both the cost and the postage low.
• It is worth having to the shopper. A gift they would happily use feels like a reward. A gift that looks like leftover stock does the opposite.
• It fits what they are buying. A sample of a related product, a small accessory or an upgrade to the packaging make sense with the order. A random item makes the offer feel like clearance.
• It is easy to ship. Avoid fragile, oversized or regulated items. Check the weight against your shipping rates, since a gift that tips a parcel into a higher weight band has a hidden cost.
• You can keep it in stock. If the gift runs out, the offer stops working as promised. Pick something you can reorder.

#Ideas by type

• A sample or travel size of something you sell. It costs little and gets shoppers trying a product they may buy in full size next time.
• A small accessory. Think of the extra that goes with your product, such as a pouch, a cloth or a refill.
• A packaging upgrade. A gift wrapped order or a branded card costs little and suits seasonal offers.
• A slow moving item you already own. This can work, but count its real cost, including the shelf space it takes, and use it when shoppers would want it.
• A bundle sized add on. A smaller item that completes a set can lift the cart toward the minimum.

#Gifts to be careful with

• Items that shoppers can already get cheaply elsewhere. They notice, and the gift feels less special.
• Items with many sizes or colours. Running out of one option can leave a shopper without the gift they were promised.
• Anything with a cost that changes often, since the break even moves when the cost does.

#Pick the minimum after the gift

Once you know the gift, set the minimum high enough that the extra items pay for it. Then check:

1. Does the gift cost stay small against your margin at the minimum?
2. Is the minimum a stretch of a few items above your average order, not far beyond it?
3. Do sale items and discount codes count toward the minimum? Decide before you launch.
4. Have you tried sample carts, including one just below the minimum?
5. Is there an end date?

#Try your own numbers

Use the free gift threshold calculator at https://taskivator.com/free-gift-threshold-calculator/ and the discount margin calculator at https://taskivator.com/discount-margin-calculator/. Or download the planning spreadsheet at https://taskivator.com/free-gift-offer-planner-template/. The calculators run in your browser and nothing you type is sent anywhere.

#Setting up the gift in your store

Giftproof is a Shopify app that adds a free gift to the cart when a shopper reaches your minimum spend, and removes it if they drop below. Giftproof is coming soon.