Esty is a popular online marketplace where crafters and artists display over 60 million listed products to its more than 80 million active buyers. While this platform offers various ways for sellers to entice potential buyers, one often contested method is through offering free shipping.
While there are certain risks associated with offering an all-in price on Etsy, there are various advantages that sellers can benefit from. According to an open letter from Etsy’s CEO Josh Silverman, buyers on their platform are 20% more likely to purchase a listing if free shipping is offered by a seller.
Offering free shipping on Etsy is relatively straightforward. You’ll require access to your seller account and need to have existing listings to choose from. In this guide, we will take you through our step-by-step process on how you can set this up using the shipping guarantee feature.
Should You Offer Free Shipping on Etsy?
Offering free shipping on Etsy is becoming a more popular way for sellers to increase their revenue through a variety of benefits it offers. On July 30, 2019, listings on Etsy with free shipping enabled are given priority on the search results page.
Moreover, Etsy has claimed that product listings with free shipping are 20% more likely to be purchased, as it gives buyers a greater degree of convenience, making them more likely to follow through with the ordering process.
However, the decision to offer free shipping is up to the seller and can depend on a variety of factors including location, products, customer base, current shipping costs, and many others.
There are many other benefits that come with offering free shipping. Jump to this section further below or continue reading on how you can set this up in your Shop Manager using our simple-to-follow steps.
Offering Free Shipping on Etsy
Setting up free shipping on Etsy is very easy. The best way to do this is by enabling it via the Free Shipping Guarantee feature that you’ll be able to access from your Shop Manager dashboard.
Take note that enabling the free shipping guarantee will only affect listings and total orders valued at $35 and up. You won’t be able to set up the free shipping guarantee for items and order values below this threshold
However, you can still offer free shipping for lower-priced items individually (by setting the shipping cost to $0). Take note that this method is more costly to the seller.
To enable the free shipping guarantee, simply follow the steps we outlined below:
- Log into your Etsy account
- Click on the “Shop Manager” icon that can be found on the top right side of the window.
- Inside your Shop Manager dashboard, select the “Setting” button that you can find on the bottom left of your dashboard.
- Then, select the “Shipping Settings” button – here, you’ll be able to set all shipping-related details.
- After clicking through, you’ll notice a couple of tabs. Select the “Free Shipping Guarantee” tab.
- You’ll see a “Get Started” button, which you’ll need to click.
- Then select “Next” to continue setting up the process.
- Finally, select “Set Free Shipping” to enable the shipping guarantee.
You’ve now enabled the Free Shipping Guarantee on Etsy, meaning that all individual items and total order values of $35 and up will come with free shipping to the buyer. You can always turn off free shipping at any time, without any restrictions or penalties.
What Does Free Shipping Cost the Seller?
Offering free shipping through the Free Shipping Guarantee feature gives you a considerable discount. Shipping for domestic orders typically costs $5, and when free shipping is enabled, it’s free of charge.
For international orders, this fee is also reduced from $10 to $5. You can even re-distribute your reduced shipping price into your final price to alleviate additional costs that you may incur. See the table below for a sample calculation.
|Domestic Orders||International Orders|
|Product Listing Price||$40||$40|
|Shipping Cost (to Seller)||Free||$5|
|Total Price for Buyers||$40||$45|
Advantages of Offering Free Shipping on Etsy
While factors such as fluctuating shipping costs may cause sellers to think twice about offering free shipping, Etsy has made its Free Shipping Guarantee easy to understand and affordable to sellers.
There are various other benefits that you will be able to take advantage of if you decide to offer free shipping to your potential buyers. Let’s explore these in more detail.
It Entices Buyers
Free shipping is a great way to encourage buyers to buy your products, as it simplifies the ordering process and gives the impression that the seller is absorbing the shipping fees.
Moreover, buyers may sometimes even abandon their shopping carts after finding out how much shipping fees are during checkout. Enabling the Free Shipping Guarantee on Etsy can significantly reduce the chance of this happening.
Etsy Promotes Your Products
When you offer free shipping to customers, Etsy’s search algorithm automatically promotes your products and emphasizes Free Shipping for the customer – it’s essentially free marketing.
Additionally, as buyers browse categories or search results, your listing will stand out through green badges, which indicate that you’re providing free shipping.
Easier Purchasing Process
Free shipping simplifies the purchasing process and manages the buyers’ expectations upfront, not having to consider shipping fees in the process. With free shipping, the buyer only has to consider a single all-in price, making it easier for them to purchase items from you.
It Leads to Better Discoverability
Etsy has a specific filter that features only listings with free shipping. Enabling free shipping includes your products in this filter that buyers can now browse through. This can greatly increase the discoverability of your listings.
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Co-Founder & Writer
About the Author
Gerrit is a certified international supply chain management professional with 16 years of industry experience, having worked for one of the largest global freight forwarders.
As the co-founder of freightcourse, he’s committed to his passion for serving as a source of education and information on various supply chain topics.