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.
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.
| Path | Item + shipping charged | Kept / order | This 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 |
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.
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.
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.
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.
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%).