How to Offer Free Shipping as a Loyalty Reward on Shopify

Quick Answer

Yes, free shipping is a common and straightforward loyalty reward option on Shopify. Keystone Loyalty Rewards supports free shipping rewards, letting customers redeem a set number of points to waive shipping costs on their order at checkout.

Shipping cost is a genuinely common reason customers abandon a cart, so offering free shipping as a reward addresses a specific, well-understood pain point. This guide covers setting it up as a redemption option.

We will cover deciding the point cost for this reward, whether to apply it only above a minimum order value, and testing that shipping actually waives correctly once redeemed at the final checkout step.

What Does a Free Shipping Reward Involve?

A free shipping reward lets a customer redeem points to waive the shipping cost on their order at checkout entirely, rather than receiving a discount on the product total itself. This directly addresses shipping cost as a specific friction point in the buying decision, distinct from the price of the product.

Who Should Offer Free Shipping Rewards?

• Stores where shipping cost is a common reason for cart abandonment
• Businesses with higher average shipping costs relative to order value
• Brands wanting a reward type that addresses a specific, known objection
• Stores already offering free shipping above a certain order value and wanting a loyalty tie-in
• Any merchant wanting a reward option distinct from a product discount
• Stores that have seen shipping cost mentioned specifically in customer feedback or reviews

Why Free Shipping Rewards Matter for Your Business

• Shipping cost is a well-documented reason customers abandon carts
• This reward addresses that specific objection directly rather than a general discount
• It can complement an existing free shipping threshold rather than replacing it
• It gives price-sensitive customers a clear, specific reason to redeem points
• It is simple to explain, since the benefit is immediately obvious
• It can encourage customers to reach a slightly larger order to make redemption worthwhile
• It costs you the shipping fee rather than a percentage of the order, which can be easier to predict

How to Set Up Free Shipping Rewards on Shopify

Step 1: Define Your Loyalty Goal

Decide the point cost for this reward and whether it should require a minimum order value, since actual shipping cost often varies noticeably by order size and destination.

• Decide the point cost required to redeem free shipping
• Consider whether a minimum order value should apply before this reward is available
• Check this reward against any existing free shipping threshold you already offer

Step 2: Install and Configure Keystone Loyalty Rewards

Install Keystone Loyalty Rewards from the Shopify App Store and configure the free shipping reward based on your planned point cost and conditions.

• Connect the app to your Shopify store
• Set up the free shipping reward type directly in the app settings
• Add any minimum order value condition you decided on

Step 3: Create Earning Rules and Rewards

Build the specific reward configuration, confirming shipping actually waives correctly once a customer redeems the required points.

• Set the point cost for the free shipping reward
• Confirm the reward applies to standard shipping rates at checkout
• Decide if this reward should stack with any other active promotion

Step 4: Add the Loyalty Experience to Your Store

Add the free shipping redemption option to the places customers see and manage their points.

• Show the free shipping reward option in the customer account
• Add the loyalty widget so customers see this option while shopping
• Confirm the redemption option is visible before the customer reaches checkout

Step 5: Test the Program

Test the redemption directly, confirming shipping is actually waived once the reward is properly selected at checkout by a real customer.

• Redeem the free shipping reward using a test account
• Confirm shipping cost is correctly waived at checkout
• Check that the point balance decreases by the correct amount after redemption

Step 6: Go Live

Before launch, confirm the reward behaves correctly across different order scenarios and shipping methods, since this is the specific step where inconsistency tends to surface.

• Test the reward against different shipping methods if you offer more than one
• Confirm any minimum order value condition works as intended
• Check the redemption process on both desktop and mobile checkout

Free Shipping Reward Examples

Industry: Outdoor gear retailer
Problem: Cart abandonment at checkout was common, and shipping cost was a frequently mentioned reason in customer feedback and support conversations.
Setup: A free shipping reward was introduced, letting loyal customers redeem points to waive the cost directly at checkout.
Result: Customers who had enough points redeemed the reward rather than abandoning their cart over shipping cost.

Industry: Home goods brand
Problem: The brand already offered free shipping above a certain order value but wanted a loyalty-specific option for smaller orders too.
Setup: A free shipping reward was added specifically for loyalty members below the standard threshold, giving them an additional path.
Result: Loyalty members had an additional path to free shipping that non-members did not have access to.

Read more case studies for our apps.

Best Practices for Offering Free Shipping as a Reward

• Set the point cost in line with your actual average shipping cost
• Consider a minimum order value condition if shipping costs vary significantly by order size
• Check this reward against any existing free shipping threshold to avoid overlap confusion
• Make the reward visible before checkout, not as a surprise at the final step
• Test the reward across different shipping methods if you offer more than one
• Monitor whether this reward actually reduces cart abandonment after launch
• Revisit the point cost periodically if your actual shipping costs change

Summary

Offering free shipping as a loyalty reward on Shopify addresses a specific, well-known reason customers abandon their cart before completing a purchase. Set a fair point cost through Keystone Loyalty Rewards, decide on any minimum order conditions, and test the redemption at checkout carefully before launch.

If you want a loyalty reward that addresses shipping cost directly for your customers, Keystone supports free shipping redemption in your loyalty program.