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How Do You Determine Shipping Costs On Etsy?

how-do-you-determine-shipping-costs-on-etsy?
How Do You Determine Shipping Costs On Etsy?

Shipping costs can make or break your Etsy shop. There are several shipping methods to choose from, but picking the right one will depend on many factors, like your production partners your customers’ location, and the kind of products you sell.

But how do you determine shipping costs on Etsy? We’ll explain it all in this article, as well as how the different methods work in the marketplace.  

Your Etsy shipping price may attract customers, but you could lose them if they’re higher than average for similar products. 

You need to know your shipping prices to compare your costs with competitors and make adjustments if necessary.  

Depending on your competition’s strategy, you may decide that it’s time to stop selling some products or targeting a particular audience if the shipping costs bring you financial losses.

Pro tip

Use platforms like Marmalead to compare your shipping prices with competitors and view market comparisons for products similar to yours.

They Help Provide Better Services

Knowing your delivery costs will help you decide which shipping services to provide and incorporate into your budget. For instance, offering customers a package preference, priority mail service, or including a branded shipping box may leave a lasting impression on the receiver. 

On the other hand, inexpensive shipping saves you short-term expenses, but poor packaging might cost you more in returns and refunds. 

A personal touch and proper packaging may win points with your customers and reflect a positive impression on your brand.

Pro tip

If you accept Etsy Payments or PayPal, use automated Etsy shipping labels to reduce errors.

You’re Better Prepared for the Unexpected

The holiday season is when Etsy sellers make the most profits. This is great, but it may become a headache when orders accumulate, and you can’t fulfill them due to shipping issues. 

Some shops adopt different carriers or shipping settings to fulfill all orders and may need to prepare for the extra costs.  

Planning ahead and budgeting for these shipping costs could provide you some leeway. For example, utilizing expedited shipping or similar strategies to fulfill orders on time. You may experience financial losses if you don’t plan your shipping costs accurately.

Make It Happen Today!

What Affects Etsy Shipping Costs?

What Affects Etsy Shipping Costs

Consider these factors when finalizing your shipping costs.

Product Dimensions

Every carrier has its size and weight limitations. Usually, weight is the most determinant factor in the final prices. 

The dimensions and package size will change the final shipping price, so advising the carrier of these details before your product is packed is best. This information should include any wrapping and extras inside the box, and not only the item’s size.

Pro tip

Check the common Etsy package sizes to find the best shipping box sizes quickly.

Shipping Destinations

There are two base destinations – domestic or international orders. You may set different Etsy shipping profile types for both, use Calculated or Flat Rate shipping, or select Free Shipping. 

Although closer destinations should cost less, many couriers have unexpected rates and delivery times, even for nearby services.

That also applies if you ship internationally. Couriers offer different rates and tiers for neighboring countries. Rates for Germany, for example, will be very different than those for Northern Europe, Poland, or Czechia.

Stay updated with the pricing of your preferred couriers and change partners if they do not serve your most common destinations well.

Shipping Methods

You can create shipping profiles with combinations of different methods. 

For example, you may allow Etsy or a partner to calculate the shipping rates using weight, size, carrier, and destination. Or determine your own flat rate for different locations, including free delivery. 

Automatic methods are convenient and accurate, but as you acquire experience and data, consider experimenting with different rates.

Carrier Rates and Delivery Services

Factors such as distance, item weight, and package dimensions should clearly and objectively influence final shipping fees. However, carriers have specific policies, and final rates are not always as straightforward as we’d assume.

Some shipping options have higher costs or separate handling fees but don’t provide a speedy service. Even so, they could offer different advantages. Priority mail, for example, may protect delicate items against damage or losses.

Carefully research which courier to use, do several tests for various locations, and note delivery times. Remember that carriers may charge different rates to deliver to the same places.

Calculating Etsy Shipping Costs

Calculating Etsy Shipping Costs

There are three main shipping options on Etsy – calculated shipping, fixed shipping, and free shipping. You can assign different methods to specific products by creating shipping profiles.

Etsy’s Calculated Shipping

Etsy shops based in the United States and Canada using USPS, Canada Post Shipping, or Canada Post, and Printify Merchants worldwide can use automatically calculated shipping. 

For sellers in the US and Canada, Etsy Calculated Shipping uses the vendors’ and buyers’ locations. The order data, like the product weight and box size, is also considered to preview shipping costs according to their postal service and area codes.

If sellers offer more than one shipping method, Etsy shows the lower-priced option by default. 

  • Create a specific shipping profile in the Shop Manager to use calculated shipping.   
  • You must also input the size and weight of products into your listings to make it work.

Pro tip

Depending on the carrier, you can acquire Etsy shipping labels that are convenient for sellers using calculated shipping and positively impact the star seller score.

Calculated Shipping for Printify Merchants

Printify merchants can synchronize their stores with Etsy, and all products are automatically updated in their Etsy shops, including shipping information. Merchants don’t need to select a different shipping profile or provide product weight and size in the listings.

Printify calculates shipping rates according to product specifications. You can synchronize this information with Etsy – even if a product is adjusted.

This is by far the easiest, fairest, and most transparent option for Etsy shipping. Still, it’s possible to diversify options and create shipping profiles for a specific product, shipping destination, and audience or adopt Etsy’s free shipping guarantees – more on that later.

Ship Custom Products With Ease, Connect Your Etsy Store With Printify.

Fixed Shipping

This option lets you create profiles with fixed-price shipping depending on the product and its variations. 

You can set a price per item, per variation, and a separate flat rate shipping for additional items. 

This way, buyers pay the full shipping price for the higher-value product but receive a discounted shipping rate when purchasing more than one item. 

Defining a fixed-price shipping rate is not recommended if you sell to different countries and locations, as shipping costs vary considerably.

Free Shipping and Its Impact

Since 2019, Etsy has changed its search algorithm and has given priority in the search results to products with free shipping guarantees. 

The move should benefit the buyers. But in reality, it may add extra costs or a diminished profit margin for an Etsy seller while adding no actual value to the final customer.

The Psychology of Pricing

Etsy based this decision on data from their research in the marketplace. The results showed that people are willing to pay more for a product if there is no shipping cost and are prone to give up on a purchase when presented with shipping prices at the checkout. 

Increased visibility and psychological factors may boost sales for products with no handling fees.

US Vendors

Orders from the US with a minimum value of $35 automatically receive free delivery. 

For products costing more, calculate all the possible shipping regions inside the US thoroughly and how much the higher shipping price will be. Then, add any separate handling fee to the product price.

Pro tip

US sellers can use the Etsy smart pricing tool to adjust the price of bulk items using a free shipping guarantee.

International Vendors

Etsy shops outside the US that offer free shipping cannot enable the automatic guarantees but still can proceed similarly to US vendors. 

For these Etsy sellers, similarly to fixed-price shipping, it will be necessary to calculate the delivery costs to locations worldwide and include the maximum amount in the product price.

Etsy suggests that their international users add the same amount to the product price to include domestic shipping costs in the US – say, $5. Then, lower the international shipping pricing by taking out the amount already included. 

So, if your international shipping cost was $10, with $5 already added, the international shipping price will be $5.

Is it worth it?

Offer free shipping on Etsy, and your sales may increase. However, you’ll have to know precisely how much it costs to ship and add that amount to the product price.

Remember that Etsy fees will be higher for costly products. Consider lowering profit margins for these. Otherwise, their final prices could end up being too expensive.

Important

After offering free delivery, observe your sales and calculate if the boost covers your increased costs. If not, consider changing your strategy.

Use Printify to Start a Print-On-Demand Business on Etsy

Use Printify to Start a Print-On-Demand Business on Etsy

Sourcing products with Print on Demand and Printify for your Etsy shop has many advantages.

  • Risk-free.
    POD has no upfront costs since the products are designed for free and printed only after ordering. You can quickly change your strategy and product designs if your current products don’t work out. 
  • Worldwide reach.
    Print Partners are located on every continent, streamlining production and helping to contain shipping costs.
  • Sustainability.
    Make your Etsy shop more sustainable with our many eco-friendly products. Check out our variety, from canvas tote bags to organic cotton t-shirts.

Design High-Quality Products and Make Generous Profits Today. Sell on Etsy With Printify.

It’s Easier When It’s Automated

Printify’s built-in shipping settings automatically calculate shipping prices by considering your customers’ locations. The platform is optimized with Order Routing, which finds the closest Print Partner to deliver at the best prices. 

You can also edit your Printify shipping options. Assign a specific shipping profile to each product:

  1. Go to My Products, then click on the product card.
  2. Look for Assign shipping profile and select Edit.
  3. Click on Automatically assign a new shipping profile. 
  4. Click Publish and uncheck the fields you don’t want to change in your Etsy listings. You’ll likely want to select only the Shipping profile box. 

To Summarize

You learned that having accurate shipping costs on Etsy improves the quality of your services, can attract or turn away customers, and even affect your credibility and profitability. 

We’ve covered how Etsy works with calculated shipping rates for US, Canada, and global Printify Merchants and how the platform encourages sellers to offer free shipping. Still, in some cases, sellers may enter fixed prices manually. 

We also showed how automatizing shipping rates with Printify and POD is the easiest way to offer accurate and transparent shipping for your customers.

Make It Happen Today!

This originally appeared on Printify and is available here for wider discovery.
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