Etsy Shipping Guide 2023: Everything You Need To Know!

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If you live in the US or Canada and sell on Etsy, it’s now easier than ever to figure out how much shipping will cost. This is helpful because many new and old Etsy sellers have trouble figuring out how to figure out shipping costs.

But there are a few things you should know to make shipping your handmade business’s products easier.

It is important to note that the steps in this article cover both Fixed Price and Calculated Shipping settings.

So let’s get started with our Ultimate Etsy Shipping Guide.

To help you strategize your Etsy shipping plan, here are some interesting facts and statistics:

  • Online shoppers are persuaded to shop online by the prospect of free shipping. (Source).
  • According to Etsy’s primary audience, 56% of millennials expect same-day shipping. (Source).
  • There is a 61% willingness to pay more for same-day shipping. (Source).
  • Over a week’s delivery time will cause 38% of people to abandon their carts (Source).
  • 69% of shoppers said they had canceled an order because of excessive shipping fees (Source).
  • It is expected that 96% of customers will resolve shipping issues within three days of receiving their order. (Source).

On Etsy, Who Pays For Shipping? Is Etsy Responsible For Shipping?

In most cases, buyers pay for shipping, as shipping costs are typically added to the price of the item. Most Etsy shops charge a shipping fee in addition to the product price.

etsy shipping guide

However, as a result of a recent update to Etsy’s search algorithm, products that ship to the United States and cost more than US$35 and guarantee free shipping are ranked higher in search results.

Therefore, many Etsy shops offer free shipping on their products. In such instances, shipping costs would be included in the product price. Although it appears that the seller is paying for shipping, Etsy shoppers are ultimately responsible for shipping costs.

How Much Should I Charge For Shipping On Etsy?

It depends on the products you sell and the actions of your competitors.

If you sell a small item that is inexpensive to ship or if the majority of retailers in your niche offer free shipping, I would recommend including the shipping cost in the product price. By ranking higher in Etsy search results, you will be able to benefit.

However, if your item is bulkier or if the majority of your competitors do not offer free shipping, it would be acceptable to charge an additional shipping fee.

However, it is well-known that high postage costs are one of the greatest obstacles in a shopper’s purchasing journey; almost half of the shoppers abandon their shopping carts due to unexpected shipping costs!

Even if you charge an additional shipping fee, ensure that it is competitive and does not exceed a certain percentage of the product price. For instance, a $5 shipping fee would be acceptable for a $50 item, but excessive for a $15 item.

Should I Ship Internationally?

Generally, it is a good idea to ship internationally so that your product can be viewed by a greater number of customers. However, international shipping is inherently more problematic in terms of delays, customs, and taxes.

It is prudent to ship all international mail with tracking using protective packaging.

Keep in mind that many European countries charge a value-added tax on incoming shipments. From July 1, 2021, Etsy will begin collecting import VAT on physical items shipping to the EU from non-EU countries for less than 150 euros.

The standard rate is over 15%, which is quite high. Therefore, if you do not live in the EU, shipping to the EU may not be in your best interest, as your profit margins and prices will be smaller, compared to those in the EU.

Etsy Shipping Profile Types

It’s important to know that Etsy offers two different ways to ship. And no matter which choice you make, it’s important to know the differences, pros, and cons of each.

1. Fixed Price

With fixed-price shipping, you decide how much it will cost and your customer pays that amount. It’s a good way to send small, fixed-weight items like greeting cards, whether they’re going next door or across the country.

You can, of course, decide not to charge your customers anything for shipping. In that case, you would pay for your product to be sent to you. If you want to offer this service, you must first choose fixed-price shipping and then choose the free shipping.

But this is where shipping with a fixed price can get tricky. If you choose fixed-price shipping for large items, either you lose money or your customer pays too much for shipping. And this is where the feature on Etsy that figures out shipping costs comes in handy.

2. Calculated Shipping

Calculated shipping is a price that Etsy figures out for your customer based on the shipping methods you choose and other information about the item.

It’s a free thing you can do on Etsy. It makes sure that your customers get fast and cheap shipping, and it takes the hassle out of figuring out Etsy shipping prices for you.

So, if you don’t know how to figure out Etsy’s shipping prices, you can use Etsy’s calculated shipping option. After all, the name says so.

How To Calculate Your Own Etsy Shipping Costs

It’s not hard to figure out which Etsy shipping method is best for you, but there are a few questions you should ask yourself first. Let’s quickly look at:

1. What does it actually cost to ship your product?

First, you need to find out how much it will cost to ship your product. If the price you charge for shipping is less than what it costs to ship, you’re losing money.

And this is fine if you want to give your customers a discount on shipping. But you have to make sure this affects your bottom line.

etsy shipping cost

2. What is the impact of Etsy shipping prices on your bottom line?

If the price you charge for shipping covers all of the shipping costs, your bottom line won’t change. But if you offer free or cheap shipping, someone has to pay for it. And, well, you are that someone.

We made this calculator to help you figure out how much money you are losing. It will take into account both how much you charge for shipping and how much it really costs you to ship.

Use our calculator to figure out how much money you will make from each item you sell in your Etsy shop. Your bottom line is hurt by everything.

Shipping costs, Etsy’s fees, and how much it really cost you to make the item are all things to consider. But if you know your profit margin, you can figure out how to set your shipping prices to make more money for yourself.

3. Will your Etsy shipping price turn away your customers?

There is nothing worse than paying for shipping. However, online shopping requires this expense. The customer pays for it or you do.

Create Etsy Shipping Profiles For Your Listings

Now that we’ve looked at your Etsy shipping options, you can use shipping profiles to save your settings.

There are two ways to set up a new shipping profile on Etsy.

Under Settings > Shipping Settings > Shipping Profile, you can either edit an existing profile and add a new shipping method or create a new profile. Click “+ Create profile.”

The shipping settings you save when creating a shipping profile will be used for future Etsy listings. This makes it easy to change a lot of your listings at once in the future.

Here’s a quick look at all of the settings for your shipping profiles that you can change:

1. Shipping prices

When you choose your shipping settings on Etsy, you’ll see a dropdown menu. The best choice is “Calculate them for me.” Calculated Shipping is what it is because of this option. The price is automatically calculated based on the size and services you offer.

If you would like to use Etsy’s fixed-price shipping option, pick “I’ll enter fixed prices manually.”

2. Origin Post/ZIP code

This is the postcode or ZIP code of the place from which your packages will be sent. It’s important to remember that this isn’t always your ZIP or postal code. If you take your packages to a post office to drop them off, put the postal code of the office here. Your postcode is only yours if the delivery service comes to you.

3. Processing time

How long does it take between when an order is placed and when it is shipped? You can modify this setting as necessary. Choose a custom range if the turnaround time for this product is unique.

NOTE: The processing time will affect the “ship by” date and will be visible to your customers. It is therefore recommended that you shorten your product’s processing time to increase its desirability.

4. Where I’ll Deliver

For calculated shipping only: This section is where you specify the destination of your shipment. This is ultimately your decision. The default setting applies to your shop’s country and the entire world.

Click the pencil icon and adjust these settings to reflect the destination to which you will actually send the item. Note that the country of your online store must also be a shipping destination.

Keep in mind that you may need to complete additional customs declarations on behalf of your customer if the shipment is international.

5. Delivery Services

For calculated shipping only: Here is where you select the shipping options you wish to provide. All shipping methods that can be offered are selected by default. You must deselect the methods you do not wish to provide.

Remember that some customers have a preferred postage type, and if you remove that option, you reduce your chances of making a sale, especially if there are time constraints.

You must choose at least one delivery service for each region to which you intend to deliver.

Protip: If you only offer services that include tracking and insurance, you can rest assured that your customers will always be able to track their package, regardless of which delivery option they select. This provides excellent peace of mind for you and your client.

6. Free shipping

As a result of Amazon Prime and the evolution of the eCommerce industry, many online consumers now anticipate free shipping. Even Etsy prioritizes free shipping listings in search results. Therefore, you should offer it if you can afford to do so.

7. Handling Fees

For calculated shipping only: Need to account for the additional costs and time required to pack and ship orders? This is where the handling fee comes into play.

This fee covers both time and consumables spent away from your product; yes, this may include listing fees if desired.

NOTE: The handling charge is determined per item. There may be different handling fees for domestic and international orders. Simply select the “Set separate fees for domestic and international” checkbox, and two separate boxes will appear for your separate handling fees. 

8. Item weight & size

The item weight is the weight of your item prior to packaging. If you offer calculated Etsy shipping, you must fill out this field.

The item’s dimensions prior to being placed in a box are indicated by its size (when packed). This would include any additional wrapping paper, greeting cards, or other “extras” included with your product.

Shipping Expectations: Setting Reasonable Expectations

Between a customer placing an order and receiving the item, there are two primary components: your order processing time and the shipping/delivery time.

It is essential to communicate to your customers how long they will need to wait. If it takes you three business days to make and pack the orders and another three days for the postal service to deliver them, you should make it clear that shipping will take approximately one week.

During the busy holiday season, it may be necessary to adjust your processing and shipping times. The shipping method can be easily modified for multiple listings by creating a shipping profile.

Customer-friendly Packaging That Protects The Product And Impresses Customers

Etsy is frequented by those in search of handmade, one-of-a-kind items. Packaging is one of the best opportunities to make a favorable first impression.

Add patterned paper to the shipping box, washi tape to the shipping box, and a handwritten thank-you note to make your product feel more personal.

Additionally, it is advisable to use protective packaging materials, especially for fragile items. Bubble wrap is a popular packaging material, but it may not appeal to environmentally conscious customers. A cardboard-padded envelope is a more eco-friendly option.

Lost And Damaged Packages: Returns and Replacements

Online businesses will inevitably experience delivery problems. And below are some strategies for addressing them.

Customers may return an item if they are unhappy with it or if they want to exchange it for another item. It is essential that you provide a return option, as this is a crucial step in ensuring that your customers are satisfied with their purchase.

If the return is not your fault, such as a customer’s change of mind, it is customary to ask the customer to cover the shipping costs. If they purchase an additional item from your store, it may be a good idea to offer them a discount.

However, if the item is defective or the size is incorrect, Etsy sellers will typically cover the shipping costs. If the item is not too expensive, it may be a good idea to ship the customer a second one without asking them to return the first one.

‍ Packages do get lost sometimes. Therefore, it is advisable to include order tracking if it is not prohibitively expensive. Insurance is recommended for expensive listings.

For lost items, sellers would either reship a replacement at their expense or issue a refund to the customer. Consult with customers first and determine which option they prefer.

Quick Links:

Etsy Shipping Guide: Is that easy?

Calculated shipping is the most convenient method for calculating Etsy shipping costs in 2023. Indeed, it is in the name. So, when a customer places an order, they will receive an instant and accurate shipping quote based on their location.

Shipping costs are automatically calculated to make the delivery process as simple as possible for both parties!


Sonia Allan

Sonia Allan has an excellent and surprisingly equal command over both editing and writing. She’s venerated for her flexibility, research skills, understanding of SEO, organizational skills, and communication. She keeps pace with the latest writing trends and she’s known for her patience exhibiting formidable editing skills. Debut writings may not be perfect. She is known for her intense proofreading and editing capacity that makes her the cornerstone of AffiliateBay.

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