← Etsy profit calculator

Should I offer free shipping on Etsy?

Sellers search for “should I offer free shipping on Etsy” because the badge looks like a ranking cheat. It is not free. Every packed order at a $32 item price leaves $2.72 less than charging $5.00 shipping on a $30 listing. The cash free shipping returns is extra orders, not a cheaper fee stack.

Open the Etsy profit calculator, keep your shop fees, and type the free-shipping item price you would actually list. The table below uses the calculator defaults: $30 item, $5.00 shipping charged, 6.5% transaction, 3% + $0.25 payment, $6.00 postage, $4.00 materials, $32.00 free-shipping price, 40 orders/month.

This is not a shop sale — that discounts the ticket while still charging shipping — and it is not on-site Etsy Ads. Percentage fees sit on the customer total. Postage and materials do not change.

A $32 free-shipping price needs about 5.9 extra orders

Charging $5.00 shipping on a $30.00 item leaves $21.23 per order. Free shipping at the same item price leaves $16.70 (−$4.53). Moving the label into the item price ($35.00 + $0.00) leaves $21.23 — the same customer total is a tie. Free shipping at $32.00 leaves $18.51 (−$2.72 per order). At 40 orders/month, free shipping needs about 5.9 extra orders (14.7%) to match $849.00.

PathItem + shipping chargedKept / orderThis month
Charge shipping$30.00 + $5.00$21.23$849.00
Free shipping, same item price$30.00 + $0.00$16.70$668.00
Free shipping, same customer total$35.00 + $0.00$21.23$849.00
Free shipping at $32.00$32.00 + $0.00$18.51$740.40

Eating the label needs 10.8 extra orders; $40 already wins

Keep the default fees and drop the free-shipping price to $30.00. Leftover becomes $16.70 (−$4.53). That path needs about 10.8 extra orders (27.1%) to match charging shipping. Raise the free-shipping price to $40.00 and leftover becomes $25.75 (+$4.52). Free shipping already keeps more per order, so it does not need extra volume.

Offsite Ads raise the lift to 6.6 extra orders

Turn on 15% Offsite Ads and keep the $32.00 path. Charging shipping keeps $15.98. Free shipping keeps $13.71 (−$2.27). The lift rises to about 6.6 extra orders (16.5%) to match $639.00.

Rules change. This page does not publish Etsy’s live shipping schedule, search ranking, or free-shipping badge rules. Enter the item price you would actually list and the order count from Shop Stats.

Common questions

Should I offer free shipping on Etsy?

On the worked example — a $30 listing, $5.00 shipping charged, 6.5% transaction plus 3%+$0.25 payment, $6 postage, $4 materials, and a $32 free-shipping item price at 40 orders/month — charging shipping keeps $21.23. Free shipping at the same $30 item price keeps $16.70 (−$4.53). Moving the label into the item price ($35.00 + $0.00) keeps $21.23 — a tie. Free shipping at $32.00 keeps $18.51 (−$2.72 per order). It needs about 5.9 extra orders (14.7%) to match $849.00.

Is absorbing the shipping charge into the item price free?

Yes on the fee stack. Percentage fees sit on item price plus shipping charged, so $30 + $5.00 and $35.00 + $0.00 leave the same $21.23. Extra leftover only appears when the customer total changes, or when free shipping brings more orders.

Does Offsite Ads change how many extra orders free shipping needs?

Yes. Turn on 15% Offsite Ads on the same $32 path. Charging shipping keeps $15.98; free shipping keeps $13.71 (−$2.27). The lift rises to about 6.6 extra orders (16.5%). A $40 free-shipping price already keeps $25.75 (+$4.52) and does not need extra volume. Eating the label at $30 needs about 10.8 extra orders (27.1%).