Magento 2E-CommerceHow To GuideJuly 11, 2024Simon Walker

How to Configure the Minimum Order Amount in Magento 2?

How to Configure the Minimum Order Amount in Magento 2?

In a previous article, we talked about how to configure COD payment method in Magento 2. One of the points we made was that store owners can set up a minimum and maximum order amount to enable this payment method. In other words, if the order amount is lower than the minimum amount or greater than the maximum, the COD payment method is automatically disabled. In this article, we are going to discuss about the Magento 2 minimum order amount and how to configure it.

What is the Magento 2 Minimum Order Amount?

As a store owner, you wish to maximise profitability, but without exploiting the customers. Naturally, if a customer orders a product worth $1 and expects it to be delivered across the country, its not really worthwhile for the store owner. They’ll be spending more on packaging and shipping than what they’ll receive in return. This is where the Magento 2 minimum order amount comes into play.

It is the lowest monetary amount that a customer must spend on products or services in a single transaction when making a purchase. It is a requirement set by the seller and customers must meet or exceed this amount to complete the transaction. In case the customer’s subtotal or grand total is below the minimum order amount, he/she will not be able to proceed to checkout.

Why Set Magento 2 Minimum Order Amount?

When setting up a Magento 2 minimum order amount for customer group or for everyone, you’ll realise the following benefits:

Higher Average Order Value

The first thing you’ll notice is that the average order value has increased. This translates to better profitability and more sales.

Less Operational Costs

Secondly, the operational costs with processing an order goes down. Whether it is a single item or 10 items, the process and packaging costs are almost similar. Thus, it is better to process 10 items than only one.

Improved Financial Stability

A higher average order value leads to greater financial stability. The business can reinvest the extra amount to offer better services and products.

Streamlined Order Management

By reducing the number of small orders, order management becomes easier and more manageable.

Potential Drawbacks Associated with Magento 2 Minimum Order Amount?

While the minimum order amount offers various benefits, there are certain drawbacks which need to be kept in mind, including:

Lower Customer Satisfaction

Your customers may feel that you are forcing them to spend more than required. This can lead them to develop negative feelings towards your store. They may shift to a store that lets them order only the items they require without worrying about the minimum order amount.

High Cart Abandonment

Another potential drawback is that customers may abandon their cart after getting to know that the order does not meet the minimum order amount. They may not feel compelled to add more items to the cart. From a business perspective, it leads to higher losses. The cost of holding inventory will increase as well.

How to Configure the Minimum Order Amount in Magento 2?

Magento, as a flexible eCommerce platform, allows you to establish a minimum order amount through the admin panel. Keep in mind that this minimum order amount applies to all customers. If you need to set unique minimum order amounts for a customer group, consider using our Magento 2 Minimum Order Amount for Customer Group extension.

  • Login to your Magento 2 admin panel
  • On the left panel, navigate to Stores and under 'Settings', click Configuration
  • On the left panel, expand Sales and click on Sales
  • Expand the Minimum Order Amount tab
Minimum Order Amount in Magento 2
  • Enable: Select 'Yes' to enable the minimum order amount
  • Minimum Amount: Enter the minimum order amount
  • Include Discount Amount: Select 'Yes' if you want to include discount in the amount
  • Include Tax to Amount: Select 'Yes' if you want to include tax in the amount
  • Description Message: Enter a custom message you want to display when a customer does not meet the minimum order amount requirement
  • Error to Show in Shopping Cart: Enter the error message you want to display in shopping cart
  • Click Save Config

That's it for the configuration. Now when a customer tries to purchase less than $50, he will get a warning message as shown below.


About the Magento 2 Minimum Order Amount for Customer Group Extension

This extension is a must-have for store owners who wish to apply the minimum order amount for a specific customer group or groups. Through this extension, you can:

  • Display a Custom Message If Order Amount Does Not Meet the Minimum Amount
  • minimum-order-amout-2
  • Calculate Order Amount Based on Subtotal or Grand Total

To know more about this extension, book a live demo.

Final Thoughts on Magento 2 Minimum Order Amount

This concludes our article on how to configure the minimum order amount in Magento 2. Contact our support team if you require any help.

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