Pricing Strategies to Consider For a Free Delivery Guarantee: Sellers Outside the US

If you set up a free delivery guarantee, orders 35 USD and over are delivered for free for buyers in the US.

Offering free delivery doesn’t have to cost your shop money. While free delivery for buyers isn’t free for you, the seller, you can recover the postage cost by adjusting your item prices. It’s up to you to decide if repricing your items to recover postage cost is right for your business. How you determine and set prices for your shop is your decision. 

If you have feedback about offering a free delivery guarantee, let us know.

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For US sellers: Learn about strategies to price your items to recover postage costs when you offer a free delivery guarantee.

For Canadian sellers who use calculated postage: Learn about strategies to price your items to recover calculated postage costs when you offer a free delivery guarantee.

If I adjust my item prices to recover postage costs when I offer free delivery to the US, won’t this increase the total price of my items to other countries?

If you decide to adjust your item prices to recover postage costs, you might consider reviewing and adjusting your postage prices for non-US buyers as well. You can choose to average out the difference so your non-US customers pay around the same total as they did before you offered free US delivery. How you decide to price your items and delivery is up to you.

Items 35 USD and over

If you’re a seller outside of the US, we’ll have a smart pricing tool for you soon. In the meantime, you can manually update your prices to recover postage costs. 

To help recover postage costs, you can update your item list prices to include postage prices. Your item prices don’t change depending on where a shopper is located when they view your listings, so choose an approach that makes sense for your main customer base.

If you’d like to adjust the prices of your items 35 USD and over to recover postage costs, here are some examples of how you can consider adjusting your item prices:

  • Your domestic postage price: This approach works best if a large portion of your sales come from buyers in your own country.
  • Your US postage price: This is a good approach if you’re concerned about covering postage costs to the US. This approach works best if a large portion of your sales come from US shoppers 
  • A price in the middle of your US and domestic postage prices: If there’s a large difference between your domestic and US postage prices, it may make sense to choose a middle ground. For example, if your domestic postage price is 3 GBP and your US postage price is 10 GBP, you may choose to adjust your item prices by 6 GBP to average your costs.

To check how much you currently charge for postage:

  1. In Shop Manager, click Settings.
  2. Click Delivery settings.
  3. Click Edit next to a delivery profile you use often.
  4. Note how much you’re charging for postage in a profile. This is the amount you may want to adjust your item list prices by to recover postage costs in the list price. The amount is ultimately up to you to decide.

Once you determine how much you want to adjust your item prices by, you can update your item list prices to recover postage costs.

Items under 35 USD

If you set up a free delivery guarantee, any orders 35 USD and over qualify for free delivery to buyers in the US. This means that if a US buyer purchases four 10 USD items, they will automatically receive free delivery. 

If you’d like to adjust the prices of your items under 35 USD to recover postage costs, here are some examples of how you can consider adjust your item prices:

  • The average postage cost for orders over 35 USD: You can adjust your item prices by the average cost to deliver your items under 35 USD. We’ll calculate this for you, and it will be available in your Shop Manager soon. This calculation will take a look at your orders that qualify for the guarantee that include items under 35 USD. It will determine the average amount you’d need to add to your items under 35 USD to recover postage costs.
  • The amount you currently charge for delivery: You can do this by taking a look at your delivery profiles and adjusting your item prices by the current amount you charge for delivering to the US. Follow the same instructions to find your current postage prices as for items above 35 USD.

There are other factors to consider when pricing your items other than covering the costs. For example, you might want to round your item prices to the nearest whole number, whether that’s rounding up or down.

Once you determine how much you want to adjust your item prices by, you can update your item prices to recover postage costs.

How to update your item prices

To update your item list prices to include postage price:

  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 Edit prices.
  5. Enter the amount you used to charge for delivery, or whatever amount you decide, next to Increase prices by or Decrease prices by. You can see a sample listing, with its current price and its updated price.
  6. Click Apply. This will update the list prices of all your selected listings by this amount.

To qualify to have a free delivery guarantee for your shop, you only need to offer free delivery on items and order totalling 35 USD or more for buyers in the US.

How to update postage prices to other countries

If you choose to adjust your item prices to recover postage costs, you can choose to update your international postage prices to ensure that the total price your non-US buyers pay reflects your actual costs.

First, decide how much to reduce your postage prices to countries aside from the US by. It’s good practice to reduce your postage prices by the amount that you increased your item prices by to recover your costs. For example, if you adjust your item prices by 3 USD:

  • Your US postage price is now free. 
  • If your domestic postage price was 3 |USD, you can now make your domestic postage price free.
  • Your postage price to other countries was 5 USD. You can now reduce this postage price to 2 USD.

To 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 the delivery profile(s)
  6. Click Apply.
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