Should I Free Ship?
Run the numbers

Smart shipping wins customers and protects your margins.

Plug in your numbers to compare free shipping, flat rate, and zone-based pricing — and find the strategy that fits your wines, your margins, and your buyers.

Your numbers

Product
$
$
%
Costs
%
$
Volume
Shipping
$
You're absorbing $30.00 in shipping per order.
The verdict
Yes — this order is profitable.
Wine profit: $69.33. Shipping eats $30.00 of that. Net: $39.33 per order.
Wine profit
$69.33
Shipping loss
-$30.00
Net profit
+$39.33
Annual impact at 50 orders/month
Wine revenue
$63.0K
Shipping loss
-$18.0K
Net profit
+$23.6K
Shipping is costing you $18,000 per year. That's cash flow eaten by carriers — recoverable with a smarter shipping strategy.

Recommendations

  • Set your free shipping minimum at 2 bottles. That's the lowest order size where you stay profitable.
  • For a safety buffer, set the threshold at 3 bottles — you'll net $39.33 per order.

Compare strategies

Same order, three shipping plays

Using your inputs above, here's how each strategy stacks up at 3 bottles per order, 50 orders/month.

$
Free shipping
Customer pays $0
Per order
+$39.33
Per year
+$23,595
Shipping loss
$30.00/order
Flat rate $15
Customer pays $15
Per order
+$54.33
Per year
+$32,595
Shipping loss
$15.00/order
Best annual profit
Customer pays full
Customer pays $30
Per order
+$69.33
Per year
+$41,595

Numbers reflect your current product, cost, and zone inputs. Adjust any of those above and the comparison updates live.

Profitability curve

Net profit by bottle count

How to think about shipping strategy in DTC wine

Shipping is one of the largest costs in direct-to-consumer wine, and the strategy a winery picks shapes everything from average order value to customer retention. There's no single right answer. The best approach depends on your margins, your buyer, and what you're trying to grow.

The calculator above runs the math. The thinking below covers the tradeoffs each strategy carries — what tends to work, what tends to backfire, and what to weigh before you commit.

Free shipping

Free shipping is the most aggressive growth lever in DTC. It removes friction at checkout, lifts conversion rates, and is often what tips a customer from a 3-bottle order to a 6-bottle order to hit a free shipping minimum.

Where it tends to work: wineries with strong bottle margins (60%+ gross), higher price points, and a buyer base concentrated in nearby zones. It also pairs well with a smart minimum-order threshold that pushes customers toward larger carts.

Where it tends to hurt: wineries with thin margins, value price points, or a national customer base where most orders ship to far zones. Free shipping in those cases can quietly turn profitable orders into breakeven ones — or worse — without the operator realizing it until quarter-end.

Flat rate shipping

Flat rate gives the customer a known, predictable shipping cost while letting the winery recover most or all of its actual outbound spend. It's the most flexible strategy because the rate can be tuned to match margin and zone reality.

Where it tends to work: wineries shipping nationally, wineries with mid-tier price points, and operators who want predictable shipping economics regardless of where the order goes. A well-set flat rate can feel generous to customers while still covering the winery's true cost.

Where it tends to hurt: if the rate is set too high, it can suppress conversion. If it's set too low, it leaves money on the table on every cross-country order. Flat rate also doesn't reward larger carts the way a free-shipping threshold does, so it may slightly compress average order value.

Charging actual shipping

Passing the actual carrier rate through to the customer is the most margin-protective approach. The winery never absorbs shipping cost, and the operator's economics stay clean regardless of zone or order size.

Where it tends to work: for premium and ultra-premium wineries with brand pull, where the customer is buying a specific bottle and shipping cost is a small percentage of total spend. It's also the right call when margins are too tight for any subsidy at all.

Where it tends to hurt: showing $40+ in shipping at checkout on a $60 order is a well-known cart abandonment driver. For value or mid-tier price points, this strategy can suppress conversion enough that the protected margin doesn't outweigh the lost sales.

A few things worth weighing

Before locking in a strategy, a few questions tend to clarify the picture:

  • What is your true gross margin per bottle, after COGS, packaging, and platform fees?
  • Where do your orders actually ship — concentrated nearby, or spread cross-country?
  • What is your average order size today, and what would it take to lift it by one or two bottles?
  • How price-sensitive is your customer? Are they buying on price, or buying you?
  • What does your competition do, and what would standing apart cost you?

The calculator above lets you model each scenario against your real numbers. The right answer is the one that matches how your winery actually runs.

More tools coming soon.

Club retention math, payment processing margins, and more. Get notified when they launch.