Thursday, September 28, 2017

Will you offer free shipping on Etsy?

Etsy is phasing in free shipping. It is optional for sellers. Buyers will start to be able to see free shipping on listings starting on October 9th.

Buyers will see a badge on individual listings. They will also be able to filter listings when performing a search.

offering free shipping on Etsy
Free shipping is not free for sellers
As with everything else, Etsy sellers have mixed opinions about participating. Some studies suggest that the conversion rate improves 90% when free shipping is offered. Etsy stated: "More than half of the buyers we surveyed in August said free shipping is a very important factor in their decision to purchase an item."

Free shipping can certainly be a powerful marketing tool. Do you shop on Amazon, using Amazon Prime? Or Wal-mart? Or eBay? Free shipping is not new.

Increased sales and a modest increase in fees are the up side for Etsy. (It will only be available in the USA.)

Free shipping affects the bottom line
Does free shipping improve your placement in search results? "Offering free shipping doesn’t change where your listings rank in search results... buyers will have the option to filter search results for listings offering free shipping."

Should I offer free shipping?


Of course, this is a business decision. Every seller needs to make an analysis of the benefits versus the cost of offering free shipping. It comes down to one thing: can your business still make money if you offer it?

How can you decide? Try testing out whether it works by offering it on some items and not offering it on similar items. See which items sell better. Analyze your profit margin, how much money you are making.

Do returns increase? Some sellers say that they do...

Offering free shipping is a business decision
Is the increase in sales enough to keep your shop making money? Making enough money?

Additionally, sellers should consider "the cost of offering free shipping as the cost of acquiring a new customer or retaining a loyal follower." There is some value to that, but how much?

Sellers can set a minimum order dollar value. They can also specify a minimum number of items in order to qualify for free shipping.

Etsy says that sellers can combine free shipping with another promotion (sale or coupon). "Eligible buyers will see both the free shipping and the other sale or coupon discount."

I may try it on some of my items. These would be items with a relatively high value/markup and relatively low shipping cost.

Do you want to try it on some of your items?

A short how-to:


1.) To create a free shipping sale or coupon, go to Shop Manager > Marketing > Sales and coupons and click "New special offer."

2.) Specify which discount you would like to offer by selecting "Run a sale."

3.) Select "Free shipping" from the dropdown menu, fill out the rest of the details about your sale and click "next."

4.) Choose the listings you would like to include in the offer.

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