How to Use the Smart Pricing Tool: US Sellers

If you set up a free delivery guarantee in your shop, you can choose to adjust the prices of your items to recover postage cost using our smart pricing tool. Keep in mind: How you determine and set prices for your shop is your decision. Learn more about how to make free delivery work for your shop.

What is the smart pricing tool?

The smart pricing tool can help you adjust item prices for items that cost 35  or more to recover postage cost. The smart pricing tool is optional, and is currently available to sellers in the US who set up a free delivery guarantee for their shop.

If you’d like to reprice your items under 35 USD to recover postage costs when you offer a free delivery guarantee, learn about strategies to consider for repricing items under 35 USD.

If you’re a seller outside of the US, we’ll have a smart pricing tool for you soon! In the meantime, learn about pricing strategies that you can consider.

How to adjust item prices with the smart pricing tool

If you want to adjust your item prices to recover postage with the smart pricing tool:

  1. Set up a free delivery guarantee for your shop.
  2. Click Edit item prices.
  3. Choose if you want to edit your item prices to account for postage costs. The options you see will depend on if you offer fixed postage prices, or if you use calculated postage
  4. Click Review & edit.
  5. Under each item image, you can see the new list price you have chosen. You can also see the previous list price and postage price. 
  6. If you want to edit individual item prices, click the price under that item and enter the new price you want to charge.
  7. If you want to adjust multiple item prices at one time, click Edit item prices if you want to edit the new list prices of your items. 
  8. Select the items you want to edit.
  9. You can choose to:
  • Decrease amount by: Decrease the new list price for selected items by this amount.
  • Increase amount by: Increase the new list price for selected items by this amount.
  • Set amount: Set the new list price for selected items by this amount.
  • Enter the amount in the textbox.
  • Click Apply.
  • When you’re happy with the new prices you’ve set, click Publish
  • Click Publish again. It may take a few minutes for the new prices to show in your shop.
  • The new item list prices that you reviewed and approved will apply to all items 35  and over in your shop, and all items 35 USD and over will have a FREE delivery badge that’s visible to US buyers.

    The list price changes you make through this tool apply to all items in your shop that you reviewed and approved through the tool. The new prices will be the same for all Etsy shoppers, including shoppers outside of the US. You can update your postage prices for international buyers to ensure that their order totals reflect your actual costs.

    If you use fixed postage prices

    Choose either:

    • Build in postage prices to recover postage costs: Increase your item prices to include the postage price you've specified for each listing. This helps you recover the postage cost for items with free delivery.
    • Keep your current prices: Keep your current item prices. 

    Then click Review & edit to review your item prices. You can edit the amount your item prices will be adjusted by to recover postage costs as you see fit. The amount that you adjust your prices by to recover costs is up to you. 

    How are built-in postage prices calculated?

    The built-in postage price change would increase your item prices by the same amount as the fixed postage price you have previously charged for that item. This helps you recover postage costs when you offer a free delivery guarantee. 

    For example: You have an item with a list price of 35 USD (28 GBP). Your fixed postage price is 5 USD. If you increase the list price to 40 USD, you can offer free delivery while charging the buyer the same total amount for this order. You’ll still need to pay for postage costs.

     

    Current pricing

    Pricing with free delivery

    Item list price

    35 USD

    40 USD

    Postage price

    5 USD

    0 USD (Free!)

    Total price for the buyer

    40 USD

    40 USD

     

    If you use calculated postage

    Choose one of the following options to recover postage costs:

    • Closest buyer: Increase your item prices by the amount it costs to deliver to buyers in your post code.
    • Average buyer distance: Increase your item prices by the amount it costs to deliver within the median distance of your US orders in the last year. If you don't have enough orders for us to determine this distance, we use the median distance for similar items.
    • Farthest buyer: Increase your item prices by the amount it costs to deliver to buyers the furthest from you in the continental US, excluding Alaska and Hawaii.
    • Keep your current prices: Keep your current item prices. 

    Then click Review & edit to review your item prices. You can edit the amount your item prices will be adjusted by to recover postage costs as you see fit. The amount that you adjust your prices by to recover costs is up to you. 

    How are built-in postage prices calculated?

    The built-in postage price change would increase your item price by the average amount US buyers would pay at checkout on Etsy, plus any handling fees you charged, rounded up to the nearest dollar. You’ll still need to pay the cost of delivering orders.

    How does this tool work for listings with variations?

    The price of your variations will change by the same amount that your base listing price changes. For example: If you increase the price of a silver ring by 5 USD and have a gold variation of that ring, the price of the gold variation will also increase 5 USD.

    I don’t have access to the smart pricing tool

    Currently, the smart pricing tool is available to sellers in the US who set up a free delivery guarantee

    You won’t have access to the smart pricing tool if:

    • You don’t have any items 35 USD or more
    • You already offer free delivery on your items 35 USD or more
    • Your shop location is outside of the US
    • You haven’t set up a free delivery guarantee

    Strategies to price items under 35 USD

    The smart pricing tool only works for items priced 35 USD or more. If you set up a free delivery guarantee, US buyers will receive free delivery if their order total (excluding taxes) is 35 USD or more. This means that if you offer a free delivery guarantee and a US buyer purchases four 10 USD items, they will automatically receive free delivery.

    Learn about strategies to reprice items under 35 USD to recover postage costs.

    Strategies to adjust postage prices for non-US buyers

    If you choose to adjust your item prices to recover postage costs, US buyers will pay the same total amount for orders from your shop. To ensure that your non-US buyers pay order totals that reflect your actual costs, you can choose to update your postage prices for other countries to account for the postage prices that are now included in your item prices, or whatever amount you decide works best for your shop.

    To update your international postage prices:

    1. In Shop Manager, click Settings.
    2. Click Delivery settings.
    3. Click Edit next to a delivery profile. 
    4. Note how much you were charging for US delivery in this profile.
    5. Decrease the cost of delivery for non-US locations by that amount, or whatever amount you decide.
    6. Click Save profile.

    Then, update the delivery profiles for your listings:

    1. In Shop Manager, click Listings.
    2. If you want to edit all your listings, click the checkbox at the top left. If you want to edit some listings, select the checkboxes under those listings.
    3. Click Editing options.
    4. Click Change delivery profile.
    5. Select your international shipping profile.
    6. Click Apply.
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