Pricing Strategies to Consider For a Free Shipping Guarantee: US Sellers

If you set up a free shipping guarantee, orders $35 and over ship for free for buyers in the US.

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

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For sellers outside the US: Learn how you can price items to recover shipping costs when you offer a free shipping guarantee.

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

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

Items $35 and over

You can use our smart pricing tool to adjust your prices for items $35 and over. With this tool, you can adjust the prices of your items to recover shipping costs.

Learn more about the smart pricing tool.

Items under $35

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

If you’d like to adjust the prices of your items under $35 to recover shipping costs, here are some examples of ways you can consider adjusting your item prices:

  • The average shipping cost for orders over $35 that include an item(s) under $35: 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 would have qualified for the guarantee that include items under $35. It will determine the average amount you can to add to your items under $35 to recover shipping costs over time.
  • The amount you currently charge for shipping: You can do this by taking a look at your shipping profiles and adjusting your item prices by the current amount you charge for shipping to the US. Learn how to find your current shipping prices.

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 list prices to recover shipping costs.

How to check how much you charge for shipping

To check how much you currently charge for shipping:

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

How to update your item prices

To update your item list prices to include shipping 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 shipping next to Increase prices by. You can see a sample listing, with its current price and its updated price.
  6. Click Apply. This will update the item prices of all your selected listings by this amount.

To set up a free shipping guarantee for your shop, you only need to offer free shipping on items and order totaling $35 or more for buyers in the US.

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