If you’re an Etsy seller in the US or Canada, it’s now easier than ever to calculate shipping prices on Etsy. This is convenient since many new (and old) Etsy sellers are easily confused when it comes to calculating Etsy shipping costs. However, there are a few things you should know to make the shipping process easier for your handmade business.
In this article, we’ll walk you through the process of setting up both Fixed Price and Calculated Shipping prices for Etsy.
Etsy Shipping Profile Types
It’s crucial to note that Etsy has two different shipping options. And no matter which option you choose, it’s essential to distinguish the differences, advantages, and disadvantages.
01. Fixed Price
With fixed price shipping, you set the price and your customer pays it. It’s a good option for small products with a fixed weight (like greeting cards), whether they’re sent next door or to the other side of the country.
Of course, you can choose not to charge your customers for shipping at all. In which case, you would pay for the cost to deliver your product. If you want to provide this service, you’ll need to select fixed price shipping, then select free shipping.
But here’s where fixed price shipping can get tricky. Selecting fixed price shipping for large items means you’re either out of pocket or your customer overpays for shipping. And this is where Etsy’s calculated shipping feature comes in handy.
02. Calculated Shipping
Calculated shipping is a price calculation that Etsy does for your customer, based on the shipping methods you select, as well as metrics specific to the item in question.
It’s a free feature in Etsy. And it helps ensure that customers get affordable and reliable shipping while taking the hassle out of Etsy shipping price calculations on your end.
So if you’re confused about calculating Etsy shipping prices, Etsy’s calculated shipping option will do the math for you. After all, it’s in the name.
Calculating your own Etsy shipping prices
Determining which Etsy shipping method is right for you isn’t a complicated process, but there are a few questions you need to ask yourself first. Let’s take a quick look:
1. What does it actually cost to ship your product?
First things first, you need to know what it costs to ship your product. If your shipping price is lower than what it actually costs to ship, then you’re losing money. And this is perfectly fine if you want to offer discounted shipping for your customers! But, you need to make sure you factor this into your bottom line.
2. How does your Etsy shipping price affect your bottom line?
If your shipping price covers the full cost of shipping, your bottom line isn’t affected. But if you offer free or discounted shipping rates, someone has to pay for it. And well, that someone is you.
To help you understand just how much money is slipping through your fingertips, we put together this handy calculator. It’ll factor in the amount you charge for shipping, as well as the amount it actually costs you to ship.
Use our calculator to help you understand your profit margin for each listing in your Etsy shop. Everything chips away at your bottom line. Shipping costs, Etsy’s various fees, and what it actually cost you to make your product. But if you understand your profit margin, you can dial in your shipping prices to put more money in your pocket.
→ Use Our Etsy Fee Calculator for Your Shop
3. Will your Etsy shipping price turn away your customers?
Nobody likes paying for shipping. But it’s a necessary expense when it comes to online shopping. So, either you pay for it or your customer pays for it.
Before you turn away your customers due to high shipping prices, you should know what your competitors charge for shipping. That’s where Marmalead comes in.
What’s the minimum shipping price (other than free) shoppers will see when browsing through products like yours on Etsy?
What percentage of Etsy shops offer free shipping for their products?
What’s the average processing time for products like yours?
How many other Etsy sellers increase their prices to cover the cost of free shipping?
→ You can find the answer to all of these shipping questions with every keyword search you perform inside of Marmalead!
Try it for yourself and find out!
Create Etsy shipping profiles for your listings
Now that we’ve taken a quick look at your Etsy shipping options, you can save your settings with shipping profiles.
Setting up a new shipping profile on Etsy can be done in two ways.
You can start by either editing an existing and adding a new shipping method or creating a new profile under Settings > Shipping Settings > Shipping Profile. Click “+ Create profile.”
When you create a shipping profile, you’re saving your shipping settings for future Etsy listings. This makes it easy to make bulk changes to your listings down the road.
Here’s a quick look at each of the settings you can modify for your shipping profiles:
Shipping prices
When selecting your Etsy shipping settings, you’ll notice a dropdown menu, with the recommended selection being “Calculate them for me.” It’s this option that makes Calculated Shipping what it is – automatically calculated according to the size and services you’re offering.
If you’d rather use fixed price Etsy shipping for our listings, simply select “I’ll enter fixed prices manually.”
Origin Post/ZIP code
This is the postcode or ZIP of where your packages will be sent from. It’s important to note that this isn’t always your ZIP or postal code. If you go to a postal depot to drop your orders off, the postal code of the depo goes here. If the delivery service comes to you, only then is it your postcode.
Processing time
How long does it take from the moment an order is placed to the moment it’s sent out? You can change this setting as you need to. Select a custom range if this product has a unique turnaround time.
NOTE: Processing time will impact the “dispatch by” date and will also be seen by your customers. Therefore, a shorter processing time is advisable to make your product more desirable.
Where I’ll Deliver
For calculated shipping only: This section is where you specify where you’ll send your item. This is, after all, your choice. By default, the setting will be set in your shop’s country as well as worldwide. Click the pencil icon and change these settings to suit where you will actually send your item. Note that your shop’s country must also be a shipping destination. Remember that you may have to complete other customs declarations on behalf of your customer if sent abroad.
Delivery Services
For calculated shipping only: Here is where you pick the shipping methods you’d like to offer. By default, all shipping methods that can be offered are selected. It’s up to you to uncheck the methods you don’t want to provide. Remember that some customers have a preferred postage type, and if you take that away, you decrease your chances of making a sale, especially when deadlines are involved.
You’ll need to select at least one delivery service for each region that you said you’re going to deliver to.
Pro Tip: If you only offer services that include tracking and insurance, you know that your customer can always track their item, and the product will be covered, no matter which delivery option they choose. This is great peace of mind for both you and your customer.
Free shipping
Thanks to Amazon Prime and the modern world of eCommerce, many online consumers now expect free shipping. Even Etsy prioritizes listings in search that offer free shipping. Therefore, if you can afford to offer it, you should.
Handling Fees
For calculated shipping only: Need to cover the extra expenses and time it takes to pack and send your orders? That’s where your handling fee comes in. It’s this fee that covers both time and consumables away from your product – yes, that may include listing fees if you’re so inclined.
NOTE: The handling fee is calculated per item. Handling fees can be different for domestic or international orders. Just check the “Set separate fees for domestic & international” box, and two different boxes for your separate handling fees will appear.
Item weight & size
Item weight is simply the weight of your item before it’s packed. If you’re offering calculated Etsy shipping, this field is required.
Item size (when packed) is the approximate dimensions of your item before it goes inside a box. This would include any additional wrapping paper, cards, or any “extras” that you include with your product.
Etsy shipping is that easy
Calculated shipping is the easiest way to calculate your Etsy shipping prices in 2023. After all, it’s in the name. So, when a customer places an order, they’ll get an accurate and instant price on shipping, specific to their location.
The shipping cost is automatically calculated to make the delivery process of both parties as simple as possible!
