Shopify questionAnswer3 min read
Does a Free Gift With Purchase Increase Sales?
A free gift can lift order value without training customers to wait for discounts. It only works if the maths and the setup are right.
Key takeaways
- A gift that costs you little but feels valuable can protect margin better than a percentage discount.
- Set the spend threshold a little above your current average order value, so the offer raises it.
- Shopify's Buy X get Y discount can make the gift free, but the free item is never added to the cart automatically.
- I don't know of an independent study that reliably measures the lift, so test it against your usual offer.
- Who it is for
- Store owners planning promotions
- Time needed
- 4 minutes to read
- What you need
- Your average order value and margins
A free gift with purchase can increase sales and average order value, especially when it's tied to a spend threshold just above what customers usually spend. It works best when the gift costs you little but feels valuable to the shopper, and it often protects your margin better than a percentage discount. I haven't found an independent study that puts a reliable number on the effect, so run it as a test against your normal offer.
I set up gift offers as part of CRO work on Shopify stores. The idea is simple; the details decide whether it pays.
Why a gift can beat a discount
Here's an example with made-up numbers. A customer spends $50. A 20% discount gives away $10 of revenue on every order. A gift that costs you $4 to buy, and would sell for $15, gives the customer something that feels worth more while costing you less than half as much.
| Offer on $50 | Cost to you | What the shopper sees |
|---|---|---|
| 20% off | $10 | $10 saved |
| Free gift | $4 | A $15 product |
| No offer | $0 | No reason to act now |
The gift wins on cost only if shoppers want it. Run your real numbers through my profit margin calculator before you launch.
Set the threshold above your average order
The point of a threshold is to lift spending, so set it a little above your current average order value. If most orders are about $40, a gift at $50 gives people a reason to add one more item. Set it too high and hardly anyone qualifies; too low and you're giving gifts to people who would have spent that anyway. Pair it with product suggestions in the cart, as covered in my guide to upsells and cross-sells on Shopify.
Setting it up on Shopify
Use a Buy X get Y discount. In the "Customer gets" section, choose the gift product and select Free. You can require a minimum quantity or a minimum purchase amount. Shopify notes that the minimum counts product prices only, never shipping or taxes, and only products listed under "Customer buys" count toward it.
As an automatic discount, it applies in the cart and at checkout without a code. A store can have up to 25 active automatic discounts.
Check combinations too. On plans other than Shopify Plus, Shopify says products in a Buy X get Y discount can't take further product discounts, and discounts only combine when both are set to allow it. My guide to discount codes and automatic discounts walks through the settings.
Choosing the gift
- Related to the purchase: a travel-size version, an accessory or a refill makes sense with the main product.
- Cheap to ship: a heavy gift can wipe out the margin on postage.
- Something people would buy: clearing stock nobody wants makes the offer look cheap.
- Limited and clear: say "while stocks last" and switch the offer off before the gift runs out.
By country: returns and the gift
Customers in the UK, EU and Australia have strong return rights, and US shoppers expect easy returns too. Decide in advance what happens to the gift when an order is returned, and say so in the offer terms, so you aren't arguing about it later.
What to do next
- Find your average order value in Shopify Analytics.
- Pick a gift that costs little, ships light and fits your products.
- Create a Buy X get Y automatic discount with the threshold just above that average.
- Make the gift easy to add in the cart, then compare results with a normal month.
- Want help testing offers? My Shopify CRO service starts from $500.
Free tools
Check your own store
Free, no sign-up. Each one runs a part of this guide for you.
Frequently asked questions
Does Shopify add free gifts to the cart automatically?
No. Shopify says the free item in a Buy X get Y discount is never added to the cart automatically. Shoppers need to add it, or you can use an app that adds it for them.
How do I set up a free gift with purchase on Shopify?
Create a Buy X get Y discount, choose the gift under Customer gets and select Free. Add a minimum purchase amount or quantity, and make it automatic so no code is needed.
Is a free gift better than a discount?
Often, if the gift costs you less than the discount would and customers value it. Test both, because it depends on your products and customers.
What spend threshold should I use?
Set it a little above your current average order value, so the offer encourages one more item. Too high and few shoppers qualify.
Does the minimum purchase include shipping?
No. Shopify says the minimum purchase amount counts product prices only, and shipping costs and taxes are never included.
Can a free gift offer combine with other discounts?
Only if both discounts allow it. On plans other than Plus, products in a Buy X get Y discount can't take further product discounts.
Sources
- Buy X get Y discounts, Shopify Help Center
- Automatic discounts, Shopify Help Center
- Discount combinations, Shopify Help Center
Related services and work
I'm a Shopify developer and CRO specialist. I have built and improved Shopify stores since 2018, completed more than 1,000 projects, and hold a 4.96 average rating across 719 client reviews.
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