Minimum Order Amount
Definition
Minimum order amount is the lowest purchase value a customer must reach before checking out.
It is commonly used to ensure profitability or to qualify for benefits like free shipping.
Good or Bad?
Good, when used to encourage higher cart values or manage order processing costs.
Bad, if set too high, it can drive customers away or cause frustration at checkout.
Why does it matter?
It helps businesses control margins and reduce processing costs for low-value orders.
It can also be used to guide customers toward larger purchases, increasing average order value.
Common Mistakes
- Setting the threshold too high
- Not clearly displaying the required amount
- Applying it without explaining the benefit to the customer
- Forgetting to exclude certain customer roles or product types
How to Improve It?
- Display how much is left to reach the minimum
- Offer benefits like free shipping once the minimum is met
- Use dynamic messaging on cart and checkout pages
- Test different thresholds to find the sweet spot
Recommended Plugin
- Order Minimum/Maximum Amount for WooCommerce
Set minimum or maximum cart totals, per user role, product category, or payment method - Free Shipping Over Amount: Amount Left Tracker for WooCommerce
Shows the remaining amount to qualify for free shipping, motivating larger purchases
Real-World Example
A stationery store set a $15 minimum order amount and displayed a progress bar on the cart page.
It reduced small orders and increased average revenue per customer by 22 percent.
Related Terms
- Cart Abandonment
- Upselling
- Free Shipping Threshold
- Dynamic Pricing
- Checkout Optimization
FAQs
Will a minimum order amount reduce my sales?
Not if implemented with clear communication and incentives like free shipping.
Can I exclude certain products or customer groups?
Yes, with the right plugin, you can apply conditions based on user roles or product types.
What’s a common minimum threshold?
It depends on your margins, but many stores use $10, $20, or $50 depending on the industry.
