How to Use the Smart Pricing Tool: US Sellers

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

Jump to a section:

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 shipping costs. The smart pricing tool is optional, and is currently available to sellers in the US who set up a free shipping guarantee for their shop.

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

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 shipping with the smart pricing tool:

  1. Set up a free shipping guarantee for your shop.
  2. Click Edit item prices.
  3. Choose if you want to edit your item prices to account for shipping costs. The options you see will depend on if you offer fixed shipping prices, or if you use calculated shipping
  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 shipping 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 and over will have a FREE shipping 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 shipping prices for international buyers to ensure that their order totals reflect your actual costs.

    If you use fixed shipping prices

    Choose either:

    • Build in shipping prices to recover shipping costs: Increase your item prices to include the shipping price you've specified for each listing. This helps you recover the cost of shipping for items with free shipping.
    • 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 shipping costs as you see fit. The amount that you adjust your prices by to recover costs is up to you. 

    How are built-in shipping prices calculated?

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

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

     

    Current pricing

    Pricing with free shipping

    Item list price

    $35

    $40

    Shipping price

    $5

    $0 (Free!)

    Total price for the buyer

    $40

    $40

     

    If you use calculated shipping

    Choose one of the following options to recover shipping costs:

    • Closest buyer: Increase your item prices by the amount it costs to ship to buyers in your zip code.
    • Average buyer distance: Increase your item prices by the amount it costs to ship 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 ship 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 shipping costs as you see fit. The amount that you adjust your prices by to recover costs is up to you. 

    How are built-in shipping prices calculated?

    The built-in shipping 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 shipping 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 and have a gold variation of that ring, the price of the gold variation will also increase $5.

    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 shipping guarantee

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

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

    Strategies to price items under $35

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

    Learn about strategies to reprice items under $35 to recover shipping costs.

    Considerations for shipping upgrades

    If you choose to adjust your item prices to recover shipping costs, US buyers will pay the same total amount for orders with standard shipping from your shop. 

    If you offer shipping upgrades and use fixed shipping costs, you may want to adjust your shipping upgrade prices to ensure that you  charge US buyers the correct total when they pay for a shipping upgrade. The price you charge for a shipping upgrade is the amount you specify in the shipping upgrades section plus the amount you specify for standard shipping. 

    For example: If you use a shipping profile with $15 standard shipping and $10 for upgraded shipping, a buyer who chooses upgraded shipping would be charged $25. If this same buyer chose standard shipping, they would get free shipping because of your free shipping guarantee.

    If you choose to recover the standard shipping cost by adjusting your item price, the simplest way to charge the same total amount for a shipping upgrade is to change the standard shipping price for US buyers to “free.” Learn how to change your shipping price to "free."

    If you change a shipping profile, check which listings are attached to the profile you change. If you change your standard shipping price to free, and the shipping profile is attached to listings that are under $35, you may be offering free shipping where you didn’t intend to. You may want to keep items that are under $35 in a separate shipping profile from items over $35 to more easily manage the prices of your listings. 

    Strategies to adjust shipping prices for non-US buyers

    If you choose to adjust your item prices to recover shipping 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 shipping prices for other countries to account for the shipping prices that are now included in your item prices, or whatever amount you decide works best for your shop.

    To update your international shipping prices:

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

    Then, update the shipping 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 shipping profile.
    5. Select your international shipping profile.
    6. Click Apply.
    Was this article helpful?

    Still have questions?

    Contact support