A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.

Minimum Order Value

Minimum Order Value

Minimum Order Value is the minimum amount that you require the customers to spend on your website before you are able to ship their products for free or at an additional price. You can enter this amount when setting up your shipping settings. For example, if you have set the minimum order value as $30 and the user adds an item worth $20 in the basket, then he/she will be notified to buy for $10 more in order to get free shipping. Users will only see the MOV when their product’s price is lower than the MOV that you’ve set.

How to establish the Minimum Order Value

  1. You can determine your minimum order value by looking at the price of the products you want to sell.

For example, if you want to make at least $20 per order and you sell items that cost you $2 each for a price of $4 each, then you need to sell at least 10 items. That means your minimum order value for this example is $40. 

  1. You can add your minimum order amount here and also enter the error message that will be displayed when customers try to checkout with an amount lower than that.
  1. You need to give a clear sign to your customers related to the minimum order policy. They should be aware of the amount that you have listed. You can even include additional information such as the amount before coupons or taxes.
  1. You can even decide if you want to impose a fee for customers who do not meet the minimum order value requirement.
  1. For example, if you have a minimum order value of $40, then you can choose to charge $5 to customers who do not meet this minimum value. This will help your business to not lose out on the gross profit and your customers will also be satisfied as they will be able to get the products. You can go to your eCommerce settings to implement this policy.

Benefits of MOV

  • Having a minimum order value in place helps online sellers to avoid losing money on smaller orders.
  • You can enforce a minimum order amount for checkout, especially for low-cost products that may not be profitable to your store to send out one at a time.
  • A minimum order value ensures that the order size is large enough to be profitable. For example:

Your customers expect free shipping on every order. If you calculate that your business loses money when shipping orders smaller than $20 on an average, then instead of removing free shipping, you can set a minimum order value of $20.

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