--- title: "Gift with purchase for apparel brands" description: "What a free gift costs apparel brands per order on sourced costs, and how much conversion it has to add to pay for itself." url: https://offersuite.io/playbooks/gift-with-purchase-for-apparel-brands updated: 2026-10-13 --- # Gift with purchase for apparel brands What a free gift costs apparel brands per order on sourced costs, and how much conversion it has to add to pay for itself. ### Without the gift Revenue $120.00 to contribution margin $39.16 (32.6%) Revenue $120.00 Cost of goods −$40.20 Pick and pack −$3.20 Shipping label −$10.50 Card fee per order −$0.30 Refunds −$23.16 Card processing −$3.48 Contribution margin $39.16 2 declared kinds cost nothing on this option ### With a pair of socks Revenue $120.00 to contribution margin $34.66 (28.9%) Revenue $120.00 Cost of goods −$44.22 Pick and pack −$3.20 Extra picks −$0.48 Shipping label −$10.50 Card fee per order −$0.30 Refunds −$23.16 Card processing −$3.48 Contribution margin $34.66 1 declared kind costs nothing on this option The same order, without and with the gift | Option | Customer pays | Shipping charged | Costs | Margin | Margin % | Conversion it needs | | --- | --- | --- | --- | --- | --- | --- | | Without the gift | $120.00 | $0.00 | $80.84 | $39.16 | 32.6% | — | | With a pair of socks | $120.00 | $0.00 | $85.34 | $34.66 | 28.9% | +13.0% | Every figure is computed by the margin engine in Offer Suite's own code, in whole cents, from the costs below. ## What the numbers say On an order at $120.00, a pair of socks costs $4.50: its unit cost and one more pick. The customer pays the same, so the order's margin falls from $39.16 to $34.66. To earn the same per visitor, the gift has to bring 13.0% more buyers. A split test on profit per visitor shows whether the gift reaches it. The gift's retail value ($12.00) is what the customer sees; its cost is what the margin pays. A $12 pair of socks, costed at FIGS' reported gross margin. ## The cost structure, and where it comes from | | | | --- | --- | | Price | $120.00, the average order. [FIGS, fourth quarter and full year 2025 results, read 23 September 2026](https://ir.wearfigs.com/news/news-details/2026/FIGS-Releases-Fourth-Quarter-and-Full-Year-2025-Financial-Results/default.aspx) | | Unit cost | $40.20. From the reported gross margin: “Gross margin was 66.5% … average order value of $120” [FIGS, fourth quarter and full year 2025 results, read 23 September 2026](https://ir.wearfigs.com/news/news-details/2026/FIGS-Releases-Fourth-Quarter-and-Full-Year-2025-Financial-Results/default.aspx) | | Pick and pack | $3.20 per order and $0.48 for each extra item. [Fulfill.com, 3PL pricing benchmarks (The Fulfillment Advisor 2025 survey of 600+ warehouses), read 23 September 2026](https://www.fulfill.com/3pl-pricing) | | Shipping label | USPS Ground Advantage, commercial, Zone 5, by weight rounded up to the pound: 1 lb $9.29 · 2 lb $10.50 · 3 lb $12.12 · 4 lb $13.89 · 5 lb $14.53. Packed weight is an assumption: 2 lb per order. [USPS Notice 123, USPS Ground Advantage Commercial, Zone 5 (effective 4 October 2026), read 13 October 2026](https://pe.usps.com/text/dmm300/Notice123.htm) | | Card fees | 2.9% + $0.30 per order: Shopify Payments' online rate for a standard card on the Basic plan in the United States. Higher plans pay a lower rate, and premium cards a higher one. [Shopify's pricing page for the United States, online standard card rates, read 12 October 2026](https://www.shopify.com/pricing) [Rates by plan and country](https://offersuite.io/fees/shopify-payments/united-states) | | Refund reserve | 19.3%, NRF's estimate of online sales returned in 2025, across all categories. [NRF and Happy Returns, 2025 Retail Returns Landscape (15 October 2025), read 23 September 2026](https://nrf.com/media-center/press-releases/consumers-expected-to-return-nearly-850-billion-in-merchandise-in-2025) | | Gift | A pair of socks: unit cost $4.02, retail $12.00. A $12 pair of socks, costed at FIGS' reported gross margin. | ## The offer, as an agent writes it An agent writes this offer as one document for Offer Suite's API, validated against the offer schema. Below is one option of it: what the buyer gets and the price it promises. Offer Suite checks with a real cart that checkout charges exactly the prices above. **Show one option 1 option · excerpt** ``` { "key": "with-gift", "display": { "title": "With a pair of socks" }, "lines": [ { "role": "main", "quantity": 1, "purchase": { "type": "one_time" } }, { "role": "gift", "quantity": 1, "purchase": { "type": "one_time" } } ], "pricing": { "promise": { "firstChargeCents": 12000, "renewalChargeCents": null } } } ``` How Offer Suite validates, versions and publishes a document like this one: [offer documents](https://offersuite.io/features/offer-documents). ## Questions ### Is a gift with purchase profitable for apparel brands? With a pair of socks, an order at $120.00 keeps $34.66 on these costs, $4.50 less than without it. It is profitable while the order still earns, and worth giving only if it brings buyers. ### How much does a free gift have to lift conversion for apparel brands? By 13.0% here, to earn the same per visitor as the order without it. ## See what your own offers earn. Offer Suite opens to Shopify brands a few at a time. Join the waitlist, or ask for a free profit audit of your past orders: realized profit per item and per offer option, what each costs you, and where margin leaks. [Join the waitlist](https://offersuite.io/waitlist) [Request a free profit audit](https://offersuite.io/profit-audit) ## Related - [Playbooks **Offer playbooks by vertical** Bundles, subscriptions, samples, gifts, free shipping and quantity breaks for coffee, supplement, beauty, pet, apparel, fashion, footwear, jewelry, household, home goods and outdoor gear brands, on sourced costs.](https://offersuite.io/playbooks) - [Feature **Offer documents: one validated document per offer** An offer is one validated, versioned document your agent writes: tiers, bundles, subscriptions, gifts and prices, with no offer types to pick from.](https://offersuite.io/features/offer-documents) - [Calculator **Gift with purchase profit calculator** What a free gift costs per order, after its unit cost, its extra pick and its handling, and how much conversion it has to add to pay for itself.](https://offersuite.io/calculators/gift-with-purchase-profit) - [Benchmark **Apparel benchmarks from annual reports** What 11 US-listed companies selling clothing through their own stores and sites report: a median gross margin of 48.7%, from 34.8% to 68.7%. Read 13 October 2026.](https://offersuite.io/benchmarks/apparel) - [Glossary **Break-even conversion lift: definition and formula** How much more an offer has to convert to earn, per visitor, what another offer earns: the gap a cheaper offer, a gift or a discount must close.](https://offersuite.io/glossary/break-even-conversion-lift) - [Glossary **Contribution margin: definition and formula** What an order keeps after every cost that grows with it: product cost, fulfilment, shipping, card fees and refunds. The number an offer should be judged on.](https://offersuite.io/glossary/contribution-margin)