Pricing & PromotionsGWP

Gift with Purchase

Offering a free item when customers spend above a threshold.

1 min readLast updated Apr 2026

Offering a free item when customers spend above a threshold.

Why It Matters

GWP drives AOV by creating a reason to add more to cart. Unlike discounts, you control the cost (gift COGS) rather than giving margin on high-value items. GWP also introduces customers to new products at zero customer risk—sampling via reward.

Practical Example

Scenario

A beauty brand offers a free deluxe sample set ($35 value, $8 cost) on orders over $75.

Calculation

Before GWP: $68 AOV. With GWP: $89 AOV. Additional margin: $21 × 65% = $13.65. Gift cost: $8. Net gain: $5.65 per order

Result

GWP increases AOV 31% while generating $5.65 additional profit per order—plus introducing customers to products they may repurchase.

Pro Tips

  • 1Choose gifts that drive repurchase (trial sizes of high-margin products)
  • 2Show gift prominently in cart with 'Congratulations!' messaging
  • 3Use gift value in marketing ('$35 free gift') even if cost is $8
  • 4Create urgency: 'While supplies last' or limited-time availability

Common Mistakes to Avoid

Choosing gifts nobody wants (overstock clearance customers can smell)
Setting threshold too high (beyond natural stretch from average cart)
Not marketing the GWP—assuming customers will discover it

Frequently Asked Questions

Related Terms

BOGO

Buy One Get One - promotional offer providing a free or discounted additional item.