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Shipping Rates

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AOV Sanity Check

MANDATORY before any threshold calculation that references AOV. Raw AOV can be misleading due to data issues or bulk purchases.

Extract price_p25 and price_p50 from catalog_stats (use the "All Products" category group).
Evaluate AOV against catalog price distribution:

Condition	Interpretation	Action
AOV < price_p25	Anomalous — likely a data or unit issue	Override: use `price_p50` as base. Note in reasoning.
AOV > price_p90	Possible bulk/combo orders	Still use AOV but note discrepancy.
price_p25 <= AOV <= price_p90	Reasonable	Use AOV as-is.

Store the result as effective_aov. Use effective_aov everywhere AOV would be referenced — backup rate calibration, shipping thresholds, free shipping thresholds.

Rate Types

Rate types are determined by the conditions array, not by an explicit field.

Rate Type	Configuration
Flat rate	`conditions[]` empty, just `amount`
Free shipping	`amount = "0"` with optional `BY_TOTAL_PRICE GTE [threshold]`
Weight-based tiers	`BY_TOTAL_WEIGHT` conditions
Price-based tiers	`BY_TOTAL_PRICE` conditions
Quantity-based	`BY_TOTAL_QUANTITY` conditions

Condition Operators

Supported operators: EQ, GT, GTE, LT, LTE.

When multiple conditions appear in the same rate entry, they combine with AND logic.

Free Shipping Threshold Calibration

Optimal range: effective_aov x 1.0 to effective_aov x 1.5

Scenario	Impact
`threshold > AOV x 2`	Too high -- customers rarely qualify
`threshold < AOV x 0.8`	Too low -- potential margin erosion

Enhanced calibration using catalog stats:

If price_p75 > aov x 1.5 then use price_p50 x 1.5
If price_p75 < aov then use aov x 1.2
Default: max(aov x 1.2, price_p75)

Per-Item Penalty Avoidance

multiplyByQuantity = true charges amount x cart quantity. Always flag this configuration and recommend switching to flat rate or tiered pricing instead.

Price-Based Tiers Recommendation

Recommend switching from flat to tiered rates when ALL of the following are true:

price_spread_ratio > 10
price_stddev > price_avg x 0.5
Only flat rates currently exist

Recommended tier structure:

Tier 1: Below p50 -- lower rate
Tier 2: p50 to p75 -- standard rate
Tier 3: Above p75 -- higher rate or free

Flat Rate Confirmation

When ALL of the following are true, flat rate is optimal and no change is needed:

price_spread_ratio <= 3
price_stddev < price_avg x 0.3

Tier Gap Detection

Sort all conditions by value and look for gaps between ranges. Gaps mean some cart totals have no matching rate, which can cause checkout failures.

Shipping Cost Sanity Check

Any rate amount > AOV x 0.15 (15% of average order value) should be flagged as a cart abandonment risk.

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