Free Shipping — Loyalty Reward Example
Let customers redeem points for free shipping. A worked 300-point example, every field explained, and why it's the best first reward in most programs.
The reward with the best ratio of perceived value to actual cost. If your program only has one entry-level reward, make it this one.
Where: Settings → Rewards → Create reward → Free Shipping
What it does
A customer spends points and receives a discount code covering their shipping, up to a maximum amount you set.
Why it works so well as a first reward. Shipping is the cost shoppers resent most — it’s the one that feels like it shouldn’t exist. Removing it reads as a bigger win than the same money off the product, and it costs you your negotiated rate rather than your retail margin.
The fields
| Section | Field | Notes |
|---|---|---|
| Rule Name | Rule Name | Required. E.g. Free shipping — 300 points. |
| Reward Configuration | Points to Redeem | Required. |
| Reward Configuration | Maximum shipping amount | Required. The most this reward will cover. |
| Reward Configuration | Minimum Order Value | Optional order floor. |
| Reward Configuration | Discount Code Prefix | The prefix on generated codes. |
| Reward Configuration | Coupon Expiry | Days before the code stops working. |
| Reward Configuration | Return points back to customer after expiration | Refunds unused points. |
| Redemption Limits | Maximum uses per customer + Frequency | |
| Order Type Eligibility | One-time orders, or subscriptions too | |
| Discount stacking | Order / Product / Free shipping discount | Nothing stacks unless ticked. |
| Rule Status | Active / Disabled |
There’s no Discount Scope on this type. Shipping applies to the order, not to particular products.
Worked example: free shipping for 300 points
A store whose standard domestic shipping is $6.95, with express at $18.
- Go to Settings → Rewards and click Create reward.
- Choose Free Shipping.
- Fill in:
| Field | Value |
|---|---|
| Rule Name | Free shipping — 300 points |
| Points to Redeem | 300 |
| Maximum shipping amount | 10 |
| Minimum Order Value | 0 |
| Discount Code Prefix | FREESHIP |
| Coupon Expiry | 60 days |
| Return points back after expiration | ✅ on |
| Redemption Limits | Maximum uses 2, Frequency Month |
| Rule Status | Active |
- Save.
Why each number is what it is
300 points, not 500. At 100 points = $1 this reward is nominally worth $3, but it covers $6.95 of shipping — so you’re deliberately underpricing it. That’s the intent: this is the reward that gets a customer to redeem for the first time, and a first redemption is the strongest predictor of a second order. Pricing the entry reward below your standard rate is a decision, not a mistake.
Maximum shipping amount $10. Covers standard shipping comfortably, but not the $18 express option. Without a ceiling, a customer redeems a 300-point reward against overnight delivery to a remote address and the reward costs you multiples of what you planned.
No minimum order value. The maximum shipping cap already bounds your exposure, and a floor here would defeat the purpose — this reward exists to get people over the line on a small order.
Twice a month. Generous enough to feel available, capped enough that it isn’t simply free shipping forever.
Where it fits in the ladder
| Reward | Points | Role |
|---|---|---|
| Free shipping | 300 | The first redemption. Cheap for you, valuable to them. |
| $5 off | 500 | The anchor that sets the exchange rate. |
| 10% off | 500 | Same price, higher ceiling — for bigger baskets. |
| $25 off | 2,500 | The saver’s goal. |
Notice free shipping is the only rung deliberately priced below the rate. Everything above it holds the line.
Tips
- Always set a maximum shipping amount. It’s the one field that keeps this reward from being open-ended.
- Check it against your own free-shipping threshold. If you already ship free over $50, this reward matters only below that — which is exactly where you want it working.
- Consider excluding express by setting the cap just under your express rate, as in the example.
- Make it your cheapest reward. The first redemption is the one that makes the program real.
FAQ
What if shipping costs more than the maximum?
The reward covers up to the amount you set; the customer pays the rest.
Can I limit it to domestic orders?
Not directly on the reward. The Maximum shipping amount is the practical lever — set it to cover domestic rates but not international ones.
Does it work on subscription orders?
Only if you set Order Type Eligibility to include them.
Why is there no Discount Scope?
Shipping applies to the whole order, so there’s nothing to scope to a collection or product.
Next steps
- Next: Free Product — the highest-value rung.
- Related: Fixed Amount Discount · Program setups that work
Common questions
- What if shipping costs more than the maximum?
- The reward covers up to the amount you set; the customer pays the rest.
- Can I limit it to domestic orders?
- Not directly on the reward. The Maximum shipping amount is the practical lever — set it to cover domestic rates but not international ones.
- Does it work on subscription orders?
- Only if you set Order Type Eligibility to include them.
- Why is there no Discount Scope?
- Shipping applies to the whole order, so there's nothing to scope to a collection or product.