SpySeller

Should I offer free shipping on Etsy or charge shipping separately?

Anonymous • in 23 hours • 1 answer

I sell products on Etsy and I’m trying to decide how to structure my pricing and shipping. I’m not sure whether it’s better to show a separate shipping fee at checkout or offer “free shipping” by building the shipping cost into the item price.

I’m also unsure about discounts: Should I keep my items at their true everyday price, or set a higher list price and run frequent or ongoing sales? What approach tends to work best for conversion and profit while staying clear and fair to buyers?

Answers

Hi! In most Etsy categories right now, you’ll usually convert better (and sometimes show up better in search) when US buyers see free shipping or a low shipping price, so a common “best of both worlds” setup is: build some/all shipping into your item price and offer free shipping (or $0–$5ish shipping) for US buyers, while keeping a separate shipping charge for expensive-to-ship destinations (often international) so you don’t accidentally undercharge.

A few practical ways to choose the right structure:

  • If your shipping cost is pretty consistent (similar weight/box size each order): Bake it into the item price and advertise free shipping. Buyers like the simplicity, and it reduces checkout sticker shock.
  • If shipping varies a lot (big size range, multiple variations, upgrades, far-apart zones, bulky/fragile): charge shipping separately (or do a hybrid), so you don’t end up pricing yourself out of the market on the “easy to ship” orders or losing money on the expensive ones.
  • If you want higher average order value: consider free shipping over a threshold (many sellers use Etsy’s built-in free shipping guarantee for US orders over a set amount). That nudges people to add a second item without forcing you to “prepay” shipping on every single order.

One important profit note: on Etsy, your fees are generally calculated in a way where charging $X shipping vs adding $X into the item price usually doesn’t magically reduce fees, so decide based on conversion + competitiveness + risk of shipping variance, not on fee avoidance.

On discounts: the approach that tends to work best long-term (and keeps you “clear and fair” to buyers) is price your Etsy listings at a real everyday price you’re happy with, then run occasional, honest sales or targeted coupons—not constant inflated pricing with perpetual “50% off” vibes.

Here’s a clean discount strategy that works for a lot of shops:

  • Set an everyday price that already covers your costs, your time, packaging, and the average shipping subsidy (if you’re offering free shipping).
  • Run limited-time promos (ex: seasonal, slow weeks, new launches) that you can afford without resentment—then turn them off.
  • Use Etsy’s targeted offers (favorites/cart, thank-you coupons) instead of blanket endless sales, so you protect profit while still giving hesitant buyers a nudge.

If you tell me your average item price, whether you sell mostly to the US or internationally, and whether items are lightweight vs bulky, I can suggest a specific shipping + pricing setup that’s likely to keep conversion strong without eating your margins.

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