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

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. 

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

Jump to a section:

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

For Canadian sellers who use calculated shipping: Learn about strategies to price your items to recover calculated 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 to other countries?

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 non-US 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

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 shipping costs. 

To help recover the cost of shipping, you can update your item list prices to include shipping 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 and over to recover shipping costs, here are some examples of how you can consider adjusting your item prices:

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

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.

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

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 how you can consider adjust your item prices:

  • The average shipping cost for orders over $35: You can adjust your item prices by the average cost to ship your items 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 qualify for the guarantee that include items under $35. It will determine the average amount you’d need to add to your items under $35 to recover shipping costs.
  • 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. Follow the same instructions to find your current shipping prices as for items above $35.

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 shipping costs.

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, 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 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.

How to update shipping prices to other countries

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

First, decide how much to reduce your shipping prices to countries aside from the US by. It’s good practice to reduce your shipping 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:

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

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