Etsy Quick Trick: free shipping plus 15% off

Free shipping can be an effective marketing tool for vintage sellers

Have you tried free shipping? Many vintage sellers have expressed concern that free shipping is unattainable.

Will free shipping discourage multiple purchases?

My shop has free shipping. My shop also runs a 15% discount all the time off from purchases of three or more items. I have had a many takers.

Lots of vintage shops give volume discounts when asked; what I do is not much different. Shipping costs are rolled into the price... Multiple buyers get their "free" shipping cost back. They feel like they are getting a bargain to boot, a win-win!

Items with "sales" such as "15% off three or more purchases" receive another benefit: they show up on any Etsy search for items on sale.... (And of course searches with free shipping...) I get fewer requests for lower prices, too.

Etsy's take on free shipping

Is free shipping viable for online sellers?

Etsy asked buyers, and

...They see no reason why they should pay more for shipping on Etsy than anywhere else...

There was a belief... that because Etsy is person-to-person that people would understand that and pay more shipping. The buyer research was definitive: They won't.

"They're willing to pay $50 for that beautiful product. But having to pay $10 for shipping felt wrong. In fact, it feels wasteful for them to pay for shipping when everywhere else they don't have to pay. We saw time and time again that if the buyer had to pay $60 for an item and shipping was free, they felt great about it. But if they paid $50 for an item with $10 shipping, they felt bad about it."

15% off sale setup

Go to Shop Manager -> Marketing -> Sales & Coupons

Select the black button in the top right corner "new special offer."

"Run a sale." % off, minimum order quantity = 3 (makes the sale shop-wide)

Pick a date range. Give your offer a name.

Review and confirm and you are done.

A percentage-off sale on Etsy can only be a maximum of 30 days. That means that I actually run 12 sales per year. I can set them up well in advance. They are named something like "201915off01" for January, "201915off02" for February and so on.


Case studies for offering a 15% discount along with free shipping


***Example 1: an 8-oz item along with 2 jewelry pieces.***

Estimated shipping built into the cost to cover the “free” shipping: $2.99 + $2.99 + $3.99 = $10.00

Actual shipping $4.38

Order cost $64.83

15% discount on that total was $9.83

The amount  of the discount was about what I had rolled into the prices toward shipping. In this case for the three items I spent about half of that on shipping ($4.38). So when receiving $9.83 off their purchase, my customer received in effect a 7.5% discount. Does that makes sense?


***Example 2: a $100 bracelet with 2 post cards.***

This buyer purchased 2 inexpensive post cards in order to secure the 15% off. How did it work?

Bracelet $99.99 + post card $0.75 + post card $0.49 = $101.23

15% off $101.23 is $15.18 taken from the total is $86.05

$86.05 + Shipping (post cards only; shipping is not free for them in my shop) $3.98

Order total $90.03

So my buyer got 10% off plus two post cards (which I consider to be of no value and I sent one more as an extra). The buyer did not have to contact me to ask for a discount, and I am pretty happy about the sale.


***Example 3: six lots of window glass ***

This buyer scored 10 lovely pieces of crackle glass.

$185.94 - $27.89 (15% off) = $158.05

Calculated into the item cost toward free shipping: $3 + $5 + $5 + $5 + $5 + $5 = $28 

Actual cost was $21.05 + $3.82 = $24.87 (I could not get all those pieces double-boxed into a box under 1 sq ft.) 

So essentially my shop gained $3 extra over the calculated shipping. My buyer scored a net 13.5% off. With an order that big, I would have given 20% had they asked. So I am happy, and so is my buyer!

We love combined orders

What do you do with the savings?

When other sellers ask if I give shipping refunds, I answer "No, I keep it and pay it forward toward more free shipping."

People want to shop quickly. By being transparent and showing the full cost up front, we make their job of shopping easier.

Free shipping is a different business model... you need to wrap your mind around it. You make more profit if someone local buys your item, and less the further away they live.

15% off three items or more sweetens the deal all around!

Shipping integration Pirate Ship is free... it just may save your Etsy shop some money

Pirate Ship is the new shipping app on the block

Have you tried Pirate Ship for shipping?

Arrrrgh, there is a new shipping integration afoot.

I admit it: I was skeptical at first. Pirate Ship seems TGTBT. After all, Etsy already gets commercial rates.

However, the "commercial" USPS rates that Etsy (and eBay and Amazon) pass on to third-party sellers is not the cheapest rate (called "Commercial Plus.")

How does an online seller tap into the lowest shipping rates without spending a monthly fee?

I think I have found it: Pirate Ship.

There are lots of things to like

Pull up a screen and see how much your package will cost. The interface is simple:

The interface is clear and easy.

1. The rates are competitive. I save especially when shipping small, heavy items.
2. Ability to combine some different selling venues into one shipping source, such as Etsy, eBay and Shopify.
3. Pay with your credit card.
4. It is simple to set up and use.

   

   Pirate Ship presents it as easy as 1 - 2 - 3

5. Pirate Ship imports shipping details from Etsy, eBay and Shopify.
6. After purchase, it marks orders as shipped on Etsy and other venues. 
7. Setting up my Dymo 4XL was a breeze. 
8. Included is up to $100 insurance. If you need additional insurance they use U-Pic which is 75c up to $50. 
9. Pirate Ship has free chat support where you can ask questions. 
10. You can pay for labels as you print them or you can pay in advance. 
11. It is free!

Pirate Ship is easy to use

This will be my new go-to for personal packages. PayPal’s user interface for shipping has always left a lot to be desired...

Is it the very cheapest for every package?

The short answer is "no." If you ship primarily large packages such as 12x12x8" you will only save about 25 cents per package. First-class packages are the same as other venues. (This is in late 2018, before the new zoned first-class rates are implemented by the USPS.) 

Stay tuned for how it goes in 2019.

Cubic rates, the secret sauce of Pirate Ship

PirateShip uses cubic shipping rates when applicable. Cubic shipping is shipping by space and not weight. (Have you ever been disappointed that your heavy item was just a tad wrongly shaped to fit into a regional box?) Cubic rates are purely by size, maximum of 20 lbs.

Priority boxes are free

You probably already stock some priority boxes, right? Those Priority Mail boxes are in fact already set up for cubic mail. Here are some examples:

Box	Dimensions	Cubic Tier
1096L	9-1/4" x 6-1/4" x 2"	1
4	7" x 7" x 6"	2
1097	11-1/2" x 13-1/8" x 2-3/8"	2
1092	12-1/8" x 13-3/8" x 2-3/4"	3
1095	15-1/4" x 12-3/8" x 3"	4
Shoe Box	7-1/2" x 5-1/8" x 14-3/8"	4

If you do not have them, Priority boxes are free for the ordering from the USPS website. (Do not forget that USPS boxes can be cut down, possibly moving your package into a lower price bracket.)

More about cubic shipping

Skip this section altogether if you just plan on dropping your product details into Pirate Ship... This is the math for those who wonder how it works.

You can calculate cubic feet for yourself

To calculate the cubic pricing tier of your package:

Measure the outer length, width, and height of your package in inches (18" max in any dimension). 

If any of the measurements are over the nearest quarter inch, round down to the nearest 1/4" (for example, 5.6" inches becomes 5.5" inches).

Multiply the Length x Width x Height and divide the result by 1728.

The resulting number is the size of the package in cubic feet. Use the Priority Mail Cubic® rate chart to determine the pricing. 

(Be sure to round UP fractional results to the next tier... for example a package that is 0.24 cubic feet is in the 0.3 tier).

Here are the 2019 cubic rates for US mail:

Cu ft	L, 1 & 2	Zone 3	Zone 4	Zone 5	Zone 6	Zone 7	Zone 8
0.10	6.95	7.28	7.49	7.65	7.82	7.99	8.25
0.20	7.34	7.68	7.91	8.12	8.40	8.61	8.92
0.30	7.79	7.99	8.27	8.92	10.18	10.73	11.39
0.40	7.95	8.27	8.63	9.50	11.79	12.94	14.79
0.50	8.07	8.56	9.13	10.34	13.95	15.75	17.91

What are the zones, anyway?

This great question was brought up by a reader of this blog post.

The USPS zones are based on where you ship from. They are different for almost everyone (if you have a different 3-digit zip, the first three digits of your zip code). To find out yours, go to the USPS at this link.

Type in the first three digits of your zip code; a chart will appear with your zones.

I keep a copy in my shipping room for reference.

What about International First Class Mail?

According to one seller, “after using Pirate Ship for 2-3 months, they offered me a lower rate tier for international first class. My rate for a 3 oz package to most countries is $9.95 and $7.95 to Canada.”

Pirate Ship told users on their website before the USPS increases in January, 2019:

“First Class Package International is no longer the cheapest way to ship packages that weigh less than 4 lbs internationally! If your business is expanding globally, just chat with us to get access to Simple Export Rate, which can save you up to 40%.”

What about paperwork?

Pirate Ship has a tab for "reports" for bookkeeping

My husband was still skeptical. "How will this go come tax time?" He had a point.

I found the "reports" tab. It will be one more step, an additional calculations for taxes of course.

And they have these pretty data charts.

Pirate Ship is easy to integrate with your online venue

Is it easy to set up?

You must provide some basic information to Pirate Ship.

In order to access your account and pull your orders, you must grant them some access to your account (much like Foto Fuze if you have used that integration).

They will ask for a way to pay for the labels. (I have it set up much like EZ Pass and meter them out $20 at a time from my credit card.)

There are other things to set up like your return address, package templates and content of shipping emails.

Read here how to set up additional "ship from" addresses.

It seems too good to be true. How do they make money?

Their website explains:

“How can Pirate Ship possibly stay in business when it is 100% free while offering the deepest USPS® discounts available?

“The reality is we make our money just like any other shipping software company; through our official partnership with USPS®“

Online sellers need several tools in their shipping "box."

Who is afraid of free shipping?

Do you have free shipping?

I do some reading on Etsy. I see a lot of US vintage sellers who are afraid of free shipping. Deathly afraid.

(Perhaps it is an issue with shipping in general, but that is a subject for a different post.)

Repeated studies indicate that buyers (in the USA at least) love free shipping. Although they know it raises the cost of an item, they still prefer it. It is not logical (free shipping is not really "free") but there you have it.

Put yourself in a shopper's position... People want to shop quickly. By being transparent and showing the full cost up front, sellers make the job of shopping easier. Yes, shoppers often find expensive shipping to be a turn-off. Free shipping looks golden in the eyes of shoppers.

Also, word on the street is that Etsy's algorithm could bump up your items if you have free shipping.

Is now the time to think about it?

Geographically challenged?

What is holding you back?

Bulky, heavy stuff: if all you sell in your shop are items over two pounds that pack up over .5 cu ft., then you can just stop reading this right now. This is the time when Etsy's Calculated Shipping shines. You are good to go.

(Living in the northeast corner of the USA, I understand the issue of zoned shipping. Most of the west and deep south are expensive shipping zones for  me.) Bulky items over .5 cu ft and two pounds are the exception. Leave them be, safely ensconced in Calculated Shipping.

Heavy, bulky items are the exception.

Almost everything else? I add some, most or even all of the shipping to the cost and call it good.

(A caveat: my YOY revenue in the first year showed "up 28%".  With the shipping bundled in there, revenue is inflated.)

Can a shop really do that? 

I am. I have converted everything (items under .5 cu ft and under two pounds, that is) over to free shipping. (Some sellers call this "shipping included.")

How: I set up a manual shipping profile called "FREE." When renewing I open the item, check attributes, listing text and tags. I look at how I have shipping set. Most of the time, I increase the price to accommodate the "free shipping" model. Then I click the new "free" shipping profile. Done.

Here is more information on how to quickly change listings to free shipping.

Will free shipping discourage multiple purchases?

Small packages are easier

It will not, if you give a corresponding discount off of multiple purchases. I have my shop set at 15% off for purchases of three or more items. That way my multiple buyers get their "free"
shipping back and feel like they are getting a bargain.

Another benefit of offering a percentage-off promotion is that my shop shows up on any search for items on sale.... (And of course searches with free shipping...) I get fewer requests for lower prices, too.

Here is a little bit of Q & A on the subject from Etsy CEO Josh Silverman.

Etsy wants us to "think of shipping as just another business expense you need to roll into your product prices." Free shipping is a different business model... you need to wrap your mind around it. You make more profit if someone local buys your item, and less the further away they live...
Who is afraid of free shipping now?

Happy Etsy selling!

Once your free shipping profile is set up, the rest is easy.

Setting up a new free shipping profile

Afterthought: I find that converting my listings to free shipping helps me view my pricing in a new light. Perhaps some items are too expensive to ship, and not worth carrying in my online shops. Will a time come when large, inexpensive items will be again sold locally rather than online?

Another afterthought: offering free shipping forces sellers to be on their game as to the cheapest shipping options. Make friends with Pirate Ship's cubic pricing. Learn the nuances of the USPS (or other postal service if you are not in the USA).

I wanted the graphic smaller, but...

What about international shipping?

Because it can be so expensive, small sellers have difficulty offering free shipping internationally. If item prices are raised to compensate for free shipping to domestic locations what can be done to sweeten the deal for international buyers?

That IS a good question. Perhaps you can lower your international shipping prices to a degree to coincide with the discount you are giving to your buyers who are receiving "free shipping." For example, if a particular item you added $4 to the price to cover shipping, why not take approximately $4 off shipping your international buyers?

I do not ship internationally except by request. I am not sure if there is a full answer of how to make some sort of equitable "free shipping" for international buyers. A case-by-case basis? Set up a bunch of individualized profiles and use the one that fits the size of your item? Please let me know if you come up with a workable solution.

Etsy quick trick: convert listings to free shipping

Are you offering free shipping? I am. In fact, I decided to permanently convert most of my listings to free shipping.

Quickly convert individual items to free shipping

I went into each one and manually made the change. It took some time.

The back story is this: we moved recently. That is something that can be difficult for those of us who sell vintage. Why? Our buying far outpaced our selling.

We collected too much stuff. Moving and organizing it is a lot of work. Especially with a roomful if extra items laying around, mixed in.

Inventorying stock

I lost a couple of orders. Yikes. We decided it was time for a full inventory, pulling every item and checking it off a list. This was helpful, identifying some errors.

As we inventoried, I realized that I could convert many listings over to free shipping right then. I just needed to do it quickly while keeping up with the inventory process (my husband checking off items on a big Excel chart).

Eventually I was able to simplify the steps to make listings free shipping. There is a secret.

Set up a FREE shipping profile 

Set up a "free shipping" profile from within "Listings." Then it is easy to convert individual listings. Open it and then one click. Even easier, use the "Quick Edit" feature from within Listings.

Switching is easy-peasy. Use the "Quick Edit" screen

For each item I ask myself, “is it under a pound?” If so, I add a little to the price. (I generally use price points.) Click the “FREE” shipping button. Done.

Doing it this way makes the change a permanent thing, not a limited-time promotion.

(Note that Etsy sets up a separate “sale” section to your shop. For some that is a disadvantage. Others prefer to have no added shop section.)

There, that was easy, right? Have a great selling day!

(More details in the screen shots below about how to set up a free shipping profile.)

A whole article here about how to switch.

Setting up a Free Shipping profile

Using your new Free Shipping profile from an open listing