Offering free shipping on Etsy can be a great way to attract more customers and increase sales. However, it can be challenging to determine how to offer free shipping without losing money. Fortunately, there are several strategies that sellers can use to offer free shipping while still maintaining profitability.
One option is to increase product prices to cover the cost of shipping. By raising prices slightly, sellers can offset the cost of shipping and still offer free shipping to customers. Another option is to set a minimum order amount for free shipping. This encourages customers to purchase more items and increases the average order value.
Sellers can also consider using calculated shipping to determine shipping costs based on the buyer’s location and the weight of the item. This can help ensure that shipping costs are accurately reflected in the price and can prevent sellers from losing money on shipping expenses. By implementing these strategies, sellers can offer free shipping on Etsy while still maintaining profitability and attracting more customers.
Why Offer Free Shipping on Etsy?
Offering free shipping on Etsy can be a great way to attract more customers and increase sales. In this section, we’ll explore some of the benefits of offering free shipping on Etsy.
Increased Sales
One of the main reasons to offer free shipping on Etsy is that it can lead to increased sales. Many customers are more likely to make a purchase if they know that shipping is free. In fact, a recent study found that 90% of customers say that free shipping is the top incentive to shop online.
By offering free shipping, you can also increase the average order value. Customers may be more likely to add additional items to their cart to take advantage of the free shipping offer. This can help boost your overall sales and revenue.
Improved Customer Satisfaction
Another benefit of offering free shipping on Etsy is that it can improve customer satisfaction. Customers appreciate when sellers offer free shipping, and it can help build loyalty and trust. When customers are happy with their purchase and the shipping experience, they are more likely to leave positive reviews and recommend your shop to others.
Offering free shipping can also help reduce cart abandonment rates. Customers may be more likely to complete their purchase if they know that shipping is free, rather than abandoning their cart due to unexpected shipping costs.
How to Offer Free Shipping on Etsy
If you’re an Etsy seller, offering free shipping can be a great way to attract more customers and increase sales. Here are three ways to offer free shipping on Etsy:
Setting Up a Free Shipping Guarantee
Etsy offers a free shipping guarantee program that you can opt into. To set up a free shipping guarantee, go to your Shop Manager and select “Settings” and then “Shipping settings”. From there, choose “Get started” in the “Free shipping guarantee” tab and follow the prompts to set up the guarantee. This program offers free shipping on orders over a certain amount, which you can choose.
Creating a Free Shipping Sale
If you don’t want to offer free shipping on all orders, you can create a sale that offers free shipping on specific items. To do this, go to your Shop Manager and select “Marketing” and then “Sales and coupons”. From there, choose “New special offer” and select “Free standard shipping” as the offer type. You can then choose which items the offer applies to and set any additional terms and conditions.
Offering Free Shipping on Specific Items
If you want to offer free shipping on specific items without creating a sale, you can do so by adjusting the price of the item to include the cost of shipping. This means that the customer will pay the same price as before, but the shipping cost will be included in the item price. To do this, go to the listing for the item and select “Edit”. From there, adjust the price of the item to include the shipping cost and save the changes.
Calculating the Cost of Free Shipping
Offering free shipping on Etsy can be a great way to attract more customers and increase sales. However, it is important to calculate the cost of free shipping to ensure that it is a financially viable option for your business. This section will provide an overview of the two main factors to consider when calculating the cost of free shipping: shipping costs and product pricing.
Shipping Costs
The first step in calculating the cost of free shipping is to determine your average shipping costs per order. This can be done by reviewing your past orders and calculating the average shipping cost. Once you have this figure, you can use it to determine your free shipping threshold.
According to Gorgias, a formula for calculating your free shipping threshold is:
| Free shipping threshold | = | (Average shipping cost per order / gross profit margin percentage as a decimal) + average value of an order |
|---|---|---|
For example, if your average shipping cost per order is $10, your gross profit margin percentage is 30%, and your average order value is $50, your free shipping threshold would be $83.33.
Product Pricing
The second factor to consider when calculating the cost of free shipping is product pricing. One option is to price your items to include the shipping cost in the item list price. This can be a simple way to offer free shipping without losing money. Another option is to adjust your item prices to recover the cost of shipping.
According to Etsy Help, if you set up a free shipping guarantee, orders $35 and over ship for free for buyers in the US. You can adjust your item prices to recover the cost of shipping for these orders.
Overall, calculating the cost of free shipping involves determining your average shipping costs per order and adjusting your product pricing to recover the cost of shipping. By carefully considering these factors, you can offer free shipping on Etsy without losing money.
Tips for Offering Free Shipping on Etsy
Offering free shipping on Etsy can be a great way to attract more customers and increase sales. Here are some tips to help you successfully offer free shipping:
Promote Free Shipping in Your Shop Banner
Make sure to promote your free shipping offer in your shop banner. This will help catch the attention of potential customers and encourage them to browse your shop. Consider using a call-to-action in your banner, such as “Shop now and enjoy free shipping!”
Use Free Shipping as a Marketing Tool
Use your free shipping offer as a marketing tool to attract new customers. Consider running a social media campaign or email newsletter to promote your free shipping offer. You can also use Etsy’s Promoted Listings feature to target shoppers who are searching for items with free shipping.
Offer Free Shipping on Orders Over a Certain Amount
If you’re worried about the cost of offering free shipping on all orders, consider offering free shipping on orders over a certain amount. This can help encourage customers to purchase more items from your shop to qualify for free shipping. Make sure to set the minimum order amount at a level that makes sense for your shop and customers.
Conclusion
Offering free shipping on Etsy can be a powerful way to increase sales and improve search rankings. However, it is important to carefully consider the costs and find ways to offset them. Some strategies to consider include:
- Increasing prices slightly to cover the cost of shipping
- Setting a minimum order amount to qualify for free shipping
- Using flat rate shipping or other cost-saving measures
Sellers should also keep in mind that offering free shipping is not always necessary or appropriate for every shop. It may depend on factors such as the type of product, the competition, and the target audience.
Ultimately, the decision to offer free shipping on Etsy should be based on a careful analysis of the costs and benefits, as well as the unique needs and goals of the individual seller.