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 to recover postage costs when you set up a free delivery guarantee. The smart pricing tool is optional, and is available for sellers who set up a free delivery guarantee for their shop.

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 for items $35 USD and over to recover postage costs. The options you see will depend on if you offer fixed postage prices, or if you use calculated postage
  4. Click Next.
  5. Choose if you want to edit your item prices for items under $35 USD to recover postage costs on orders including these items that are delivered for free. You can choose the amount calculated by Etsy’s data analysts to help recover postage costs over time, choose a different amount, or to keep your current prices.
  6. Click Review & edit.
  7. 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. 
  8. If you want to edit individual item prices, click the price under that item and enter the new price you want to charge.
  9. 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. 
  10. Select the items you want to edit.
  11. 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.
  1. Enter the amount in the textbox.
  2. Click Apply.
  3. When you’re happy with the new prices you’ve set, click Publish
  4. Click Publish again. It may take a few minutes for the new prices to show in your shop.

The new item prices will apply to all items in your shop that you reviewed and approved , and all items $35 USD and over will have a FREE delivery badge that’s visible to US buyers.

The new prices will be the same for all Etsy shoppers, including shoppers outside of the US.

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

 

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 delivery profiles are adjusted

Your postage prices in your delivery profiles will be adjusted to account for any price adjustments you made to your items to recover postage costs. This means that most buyers will pay around the same total price they did before these adjustments.

US postage prices: US standard postage prices will be adjusted to 0.00 for any profiles with items with prices you adjusted. 

International postage prices: If you choose to build in postage prices for your items with fixed price delivery, your postage prices to other countries will be reduced by the same amount as your standard US postage price.

Profiles with items $35 USD and over, and below $35 USD: If you had a delivery profile that had both items over and under $35 USD, all items $35 USD and over are moved to a new delivery profile. The new profile has the same name as the old profile, followed by (Reduced postage).

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 for sellers who set up a free delivery guarantee

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

How is my recommendation on how to recover postage costs for items under $35 USD determined?

We calculated how you can adjust item prices under $35 USD to recover postage costs, for times when your items are delivered for free as part of an $35 USD+ order. 

This number comes from a calculation of the postage costs from the orders from US buyers that were over $35 USD, and includes at least 1 item that was under $35 USD. We divided this by the amount of items under $35 USD you sold last year.

Assuming you’ll sell the same number of items this year, we spread your postage costs across that number of items under $35 USD you sold last year, to get the recommended price adjustment. 

Consider adjusting your item prices by this amount to gradually recover the cost of free delivery on orders of $35+.

Was this article helpful?

Still have questions?

Contact support