Etsy Quick Trick: workarounds for the new DIM package rates

New USPS regulations went into effect on June 23, 2019. Lightweight packages over 1 cu ft can now be much more expensive to ship. How is your shop coping?

Here are some workarounds:

• Go to the post office and pay the Retail Ground® rate which (for now at least) is not subject to the DIM rates. For the restrictions, see the footnotes on p 8. 
• Use Fedex
• Use UPS. They have a promotion code going right now: EASY more info

If you are interested in the first option, USPS Retail Ground®, the caveats are in the footnotes:

1. Zones 1–4 are only for the mailing of hazardous materials, live animals, or other items required to be shipped by ground transportation (does not apply to oversized parcels). 
2. For parcels that measure in combined length and girth more than 84 inches but not more than 108 inches, and the piece weighs less than 20 pounds, use the 20-pound price (balloon price) based on the applicable zone. 
3. For parcels that measure in combined length and girth more than 108 inches but not more than 130 inches, use the oversized price, regardless of weight, based on the applicable zone. 

Some definitions and other information for those contemplating using Retail Ground®:

"Balloon" means packages whose length + girth measure 84-108 inches. They are charged the 20-lb rate ($21-$62, depending on zone).

"Oversized" is the term for packages whose length + girth measure more than 108 inches. They will be charged a special, very expensive rate that ranges from $75-$197 to ship.

Retail Ground® does not include insurance, or packaging.

To deal with the fact that USPS Retail Ground® rate is restricted to zones 5-9 unless you are mailing hazardous materials or live animals, you may need to ship something hazardous in the package. I will not be giving any more instructions, but you will want to do your homework.

What are the zones, anyway?

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.

A review: your options besides the USPS:

• Fedex
• UPS. They have a promotion code going right now: EASY more info

Whichever method you choose, Etsy does not have any means to calculate shipping of items over 1 cubic ft. (They do, but only include Priority, Parcel Select and other very expensive methods.)

For now, I suggest adding a note to your listings over 1 cu ft: if shipping seems high, to contact you for a more accurate quote.

Why this drastic uptick in USPS rates?

"The USPS’s current business model has become outdated due to changes in technology, markets, and customer needs and preferences. It is unsustainable and must be fundamentally changed if the USPS is to avoid a financial collapse and a taxpayer-funded bailout."

More information here.

USPS DIM pricing for oversize packages takes effect on June 23, 2019

Some US online sellers may receive a nasty surprise in June

Within a month, online sellers will say "hello" to DIM pricing. This change was originally supposed to go into effect in January. It is such a big change that postal officials delayed it until June 23, 2019.

What is Dimensional Weight (DIM Weight)?

Also known as DIM weight, this will kick into effect when packages are over one cubic foot. It raises shipping prices of your large, lightweight shipments.

Why this change?

The reasoning is that the postage paid will now cover the space a package takes up on a truck or airplane (not just the physical weight of the package). 

How is Dimensional Weight Calculated?

How to calculate dimensional weight

If your package is bigger than one cubic foot, you are in Dimensional Weight territory. 

166 is known as the "Dimensional Weight divisor" (which had been 194 and for FedEx and UPS is 139).

(L x W x H)/166 = the "DIM weight"

Then it all comes down to the actual weight of the package. If it is more than the DIM weight, you pay that. If it is less than the DIM weight, you will pay the DIM (higher) weight price.

Note that dimensional weight changes in pricing apply to all domestic Priority Mail, Priority Mail Express, and non-Lightweight Parcel Select packages that measure over one cubic foot.

For all packages over 1 cubic foot, the rate paid for shipping will start at the DIM price. (It will of course be even higher if the package weighs more than the DIM weight.)

Examples

All current pricing examples were calculated using Pirate Ship.

Example 1

This sample calculation is for a very lightweight 14 x 14 x 14" box. In this case the price change will be drastic:

Now

• Box size: 14x14x14"
• Weight: 2 lbs
• $7.42 to zone 1/2 
• $7.88 to zone 4
• $35.33 to zone 6 via Priority (DIM rate)
• $9.50 to zone 6 via Parcel Select
• $47.06 to zone 8 via Priority (DIM rate, Priority Express is actually cheaper)
• $10.56 to zone 8 via Parcel Select

Using dimensional weight after June 23

• (14x14x14)/166 = 16.5
• 16.5 rounds up to the 17 lb. rate
• DIM $13.88 to zone 1/2
• DIM $20.35 to zone 4
• DIM $ to zone 6
• DIM $52.29 zone 8 Priority
• DIM $51.94 zone 8 Parcel Select
• UPS and Fedex are actually cheaper, at $28.98

(Alternatively, if your 14x14x14" item weighs 17 lbs already, you will still pay that rate.)

Example 2

This is a heavier package, at 10 lbs.

Now

• Box size: 16x12x10"
• Weight: 10 lbs
• $9.38 to zone 1/2 
• $11.69 to zone 4
• $25.39 to zone 6 
• $36.32 to zone 8

Using dimensional weight after June 23

The old way

• (16x12x10)/166 = 11.56
• 11.56 rounds up to the 12 lb. rate
• DIM $11.32 to zone 1/2
• DIM $15.95 to zone 4
• DIM $30.01 to zone 6
• DIM $42.20 to zone 8 

Alternative shipping

Although USPS package rates have increased significantly in 2019, they remain for the most part a better deal than Fedex or UPS. The DIM weight divisor the two private carriers use is even smaller, at 139. As a result their prices are generally even higher. However, they may be worth a try.

Takeaway 

You are not alone in this; you have company: any other seller with similar items has the same issue. So it is not like any of us has much of an advantage over the other.

Etsy's shipping calculator will make the changeover easy. However, don't make any errors with your package dimensions, as they could prove costly.

What can you do?

Knowledge is power: measures can be taken to minimize negative impacts in your shop.

1. Use the smallest box that will do the job.

2. Consider selling your items in ways that will minimize their size, such as partial disassembly.

3. Sell items in numbers/ways that minimize shipping cost.

4. Stay informed on how to minimize overall shipping cost, like taking advantage of cubic rates.

5. Look into other carriers, like Fedex and UPS.
6. Be proactive: take steps to keep shipping prices as low as possible. Your customers will thank you with more business. 

Additional steps I am taking

My husband and I live in an apartment. Before this change I had already been working on scaling the size of my items down. 

As I go to publish this, I am now looking at all of the packaging supplies I use. I have already ordered bubble wrap, and soon will buy some bulk padded envelopes. And I will be evaluating new types/sources of packaging that will become more competitive with such a drastic increase of shipping rates for oversize packages of packaging supplies.

I have been checking the few oversized items I have and most are heavy enough for these rates not to be a huge factor.

What about free shipping in view of the new rates?

We all know that there is no such thing as "free shipping." Someone pays for it. 

Dimensional Weight Pricing will make calculating accurate shipping costs even more important. What profit margin are you comfortable with?

It might be worthwhile to peruse your selling history. Where is your customer base? (And of course, who are they?)

Free shipping may not be a viable option for your shop if most of your buyers are on the opposite coast and your packages are oversize.

Still confused?

After June 23, 2019, all packages over 1 cu ft shipped within the USPS will be charged by volume, not weight (unless the weight is over 10 lbs of course).

• A 12.5" x 12" x 12" box will ship for a minimum of the 11-lb rate for  $11-$40, depending on zone.
• A 13" x 12" x 12" box will ship for a minimum of the 12-lb rate for  $11-$42, depending on zone.

These new rates for packages over 1 cu ft apply to USPS parcel select ground as well.

If you use calculated shipping, buyers will be charged correctly... provided that your measurements are accurate.

Such pricing may affect online sales. People may go back to shopping for large items at the local thrift stores and antique malls.

Time will tell if these new rates change the online selling industry.

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!

USPS shipping prices will increase on January 27, 2019

The US Postal Service is making a significant change to postal rates in early 2019. Besides the expected rate increases, first class mail is switching to zoned service.

This means that $2.66 will no longer be the smallest package rate to ship to any U.S. destination. Effective January 27, it will cost  $3.09 to ship that same little package to zone 8 (coast-to-coast from your location; zones 1 & 2 will remain $2.66 and close zones will cost slightly more than that).

Highlights of the 2019 USPS Postal Increase 

Average postal increases are:

• Priority Mail 6.2% 
• Priority Mail Express 3.9% 
• Priority Mail Express International 3.9% 
• First Class International 3.9% 
• First Class Package Service 11.9%.

USPS letter rates will increase to 55 cents

And, of course, first-class packages rates are switching to zoned-base pricing in 2019. (A first-class stamp increases to 55 cents, for the record.)

Here is a USPS document with the new rates outlined. For my shop, I print the applicable pages. I post them in my shipping room for reference. (Try pp 13, 17, 40, 25, 27, 32, 42 and 74 for starters.)

First Class Mail zone rates

Particularly hard to absorb are the changing of first-class mail to zoned rates... I present them to you here:

Wt (oz)	1 & 2	Zone 3	Zone 4	Zone 5	Zone 6	Zone 7	Zone 8
1	2.66	2.68	2.70	2.76	2.84	2.96	3.09
2	2.66	2.68	2.70	2.76	2.84	2.96	3.09
3	2.66	2.68	2.70	2.76	2.84	2.96	3.09
4	2.66	2.68	2.70	2.76	2.84	2.96	3.09
5	3.18	3.20	3.22	3.28	3.36	3.49	3.63
6	3.18	3.20	3.22	3.28	3.36	3.49	3.63
7	3.18	3.20	3.22	3.28	3.36	3.49	3.63
8	3.18	3.20	3.22	3.28	3.36	3.49	3.63
9	3.82	3.85	3.88	3.96	4.06	4.19	4.33
10	3.82	3.85	3.88	3.96	4.06	4.19	4.33
11	3.82	3.85	3.88	3.96	4.06	4.19	4.33
12	3.82	3.85	3.88	3.96	4.06	4.19	4.33
13	4.94	4.98	5.02	5.12	5.24	5.38	5.53
14	4.94	4.98	5.02	5.12	5.24	5.38	5.53
15	4.94	4.98	5.02	5.12	5.24	5.38	5.53
15.999	4.94	4.98	5.02	5.12	5.24	5.38	5.53

They are in price groups: 1-4 oz, 5-8 oz, 9-12 oz and 13-15.999 oz. I have price points in my shop, and it looks like the US Mail does this as well.... for each zone of course... My add-on for "free shipping" will be ranging from $3.50 to $6.00 depending on the estimated packed weight.

The first-class package prices are mostly increasing (except the zone 1/2 packages):

• Any package shipped across the USA (to Zone 8) increases from $0.43 (Zone 8, 1 ounce = $3.09) to $1.43 (Zone 8 – 13 ounces = $5.53)
• 13 ounce package rates in particular will be higher, increasing $0.84 (Zone 1/2 = $4.94) to $1.43 (Zone 8 = $5.53)
• Heavier first-class items weighing 15 ounces to 15.999 ounces are seeing a smaller increase, going from no increase at all (Zone 1/2 = $4.94) to an increase of $0.59 (Zone 8 = $5.53)

My shop will be able to absorb much of this increase because of using a cheaper (free to join) shipping service called Pirate Ship.

Are you all ready?

------------------------------------------

Please note that a further rate hike for bulky packages will take effect in June:

• The USPS is extending dimensional weight to Priority Mail and Priority Mail Express for packages over 1 cu ft, with the DIM weight divisor becoming 166

Is your shop geographically challenged?

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.

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.

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.)

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."

The best items for this type of promotion would be items with a relatively low shipping cost, of course.

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.

There. All done!
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(Another way is to go to each listing and change it manually. Change the shipping method to "manual." Then, reduce the shipping to $0. In my case, I added most of the cost back on. However, I stuck to some price points... I was not rigid across the board with how I handled repricing.)

Here is a quick trick I discovered.

Here are more strategies from Etsy for offering free shipping.