--- title: "Gift with purchase for household goods brands" description: "What a free gift costs household goods 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-household-goods-brands updated: 2026-10-13 --- # Gift with purchase for household goods brands What a free gift costs household goods brands per order on sourced costs, and how much conversion it has to add to pay for itself. ### Without the gift Revenue $67.00 to contribution margin $12.66 (18.9%) Revenue $67.00 Cost of goods −$31.02 Pick and pack −$3.20 Shipping label −$14.53 Card fee per order −$0.30 Refunds −$3.35 Card processing −$1.94 Contribution margin $12.66 2 declared kinds cost nothing on this option ### With a hand soap Revenue $67.00 to contribution margin $9.86 (14.7%) Revenue $67.00 Cost of goods −$33.34 Pick and pack −$3.20 Extra picks −$0.48 Shipping label −$14.53 Card fee per order −$0.30 Refunds −$3.35 Card processing −$1.94 Contribution margin $9.86 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 | $67.00 | $0.00 | $54.34 | $12.66 | 18.9% | — | | With a hand soap | $67.00 | $0.00 | $57.14 | $9.86 | 14.7% | +28.4% | 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 $67.00, a hand soap costs $2.80: its unit cost and one more pick. The customer pays the same, so the order's margin falls from $12.66 to $9.86. To earn the same per visitor, the gift has to bring 28.4% more buyers. A cheaper gift, or a gift on larger orders only, needs less. The gift's retail value ($5.00) is what the customer sees; its cost is what the margin pays. A $5 hand soap, costed at Grove Collaborative's reported gross margin. ## The cost structure, and where it comes from | | | | --- | --- | | Price | $67.00, the average order. [Grove Collaborative, annual report (Form 10-K) for the year ended 2025-12-31, read 13 October 2026](https://www.sec.gov/Archives/edgar/data/1841761/000184176126000010/grov-20251231.htm) | | Unit cost | $31.02. From the income statement: revenue $173.7 million, gross profit $93.3 million, a gross margin of 53.7%. [Grove Collaborative, annual report (Form 10-K) for the year ended 2025-12-31, read 13 October 2026](https://www.sec.gov/Archives/edgar/data/1841761/000184176126000010/grov-20251231.htm) | | 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: 5 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 | 5%, Offer Suite's default assumption for consumables. NRF's all-category figure for online sales is 19.3%, but consumables are rarely returned; use your own rate. | | Gift | A hand soap: unit cost $2.32, retail $5.00. A $5 hand soap, costed at Grove Collaborative's 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 hand soap" }, "lines": [ { "role": "main", "quantity": 1, "purchase": { "type": "one_time" } }, { "role": "gift", "quantity": 1, "purchase": { "type": "one_time" } } ], "pricing": { "promise": { "firstChargeCents": 6700, "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 household goods brands? With a hand soap, an order at $67.00 keeps $9.86 on these costs, $2.80 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 household goods brands? By 28.4% 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 **Personal care and household benchmarks from annual reports** What 4 US-listed companies selling personal care, baby and household products, and health products by subscription report: a median gross margin of 47.7%, from 33.3% to 73.8%. Read 13 October 2026.](https://offersuite.io/benchmarks/personal-care) - [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)