Should I offer free shipping on Etsy for a new shop or charge shipping?

Hi! If free shipping is making you lose money, don’t keep it just for conversions—on Etsy, buyers mostly respond to the total delivered price (item + shipping) and whether shipping feels fair/transparent, not whether the word “free” is showing. The best approach for a new shop is usually: price so every order is profitable first, then choose whichever display (free vs. charged shipping) makes your total look most competitive for your niche.

A couple key things that surprise new sellers:

• Etsy’s transaction fee applies to the order total, including shipping you charge. So switching to “charge shipping” doesn’t magically avoid Etsy fees—it mainly changes how the price is presented.
• Your shipping label cost is real either way. “Free shipping” just means you pay it out of the item price.

What tends to work best for newer Etsy shops

1) If shipping cost varies a lot (weight/size, zones): charge shipping (often calculated).
This is the safest for profit because you’re not guessing. Buyers are generally fine with paid shipping when:

• the item price stays reasonable,
• the shipping price matches expectations for the category,
• and your processing time/delivery estimate looks reliable.

2) If shipping is cheap and consistent: bake it in (true free shipping).
This works well for small/light items where you can confidently include an average shipping cost + packaging without risking random losses. It can also reduce cart abandonment because the checkout total doesn’t “jump.”

3) A good middle ground: free shipping on qualifying orders / bestsellers only.
Many sellers do this to keep the “free shipping” appeal without eating shipping on every small order. You can also offer free shipping domestically but charge international.

How buyers typically respond (what you’re worried about)

• Raising prices can convert just fine if your listing still looks competitive in search and your photos/value are strong—many shoppers prefer an all-in price.
• Charging shipping usually doesn’t hurt conversions when the delivered total is similar and shipping doesn’t feel inflated. What hurts is “sticker shock” shipping (especially on lower-priced items).
• For a newer shop, trust signals matter as much as shipping: clear processing times, accurate delivery expectations, solid photos, and a tight product description can offset not offering free shipping.

A simple way to decide (quick math)

For each product, calculate a “true cost per order”:

• product cost (materials + labor)
• packaging
• average shipping label (or worst-case if you’re baking it in)
• Etsy fees you typically pay on the order total
• your profit margin

If you can’t hit your target profit with free shipping without pricing yourself out of the market, then charge shipping (preferably calculated) and don’t feel bad about it.

If you tell me what you sell (price range, typical weight/package size, and whether you ship mostly within the US), I can suggest which option usually performs better for that kind of Etsy listing and how to structure your shipping profile.