If you set up a free shipping guarantee in your shop, you can choose to adjust the prices of your items $35 USD or more 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.
What is the smart pricing tool?
The smart pricing tool can help you adjust item prices to recover shipping costs. The smart pricing tool is optional, and is currently available to sellers who set up a US free shipping guarantee for their shop.
The tool calculates an estimate of $35 USD in your currency using the amount a buyer paying in USD on Etsy would pay for an item listed in your currency using current exchange rates.
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:
- Set up a US free shipping guarantee for your shop.
- Click Edit item prices.
- Choose what pricing strategy you want to use. You can choose to:
- Add domestic shipping prices to item prices: The price you currently charge for domestic shipping will be added to your item prices. Choosing this option reduces shipping prices to buyers outside the US by the same amount, so your domestic buyers will pay the same total price as before. You’ll cover the remaining cost of shipping to the US.
- Add US shipping prices to item prices: The price you currently charge for US shipping will be added to your item prices. Choosing this option reduces shipping prices outside the US by the same amount. If the US shipping price is higher than a shipping price to another country, we'll set the shipping price to that country to free, so your domestic buyers may pay a higher total price. Your US shipping price will be covered.
- Click Next.
- Choose if you want to edit your item prices for items under $35 USD to recover shipping costs on orders including these items that ship for free. You can choose to use the amount calculated by Etsy’s data analysts to help recover shipping costs over time, choose a different amount, or to keep your current prices.
- Click Review & edit.
- Under each item image, you can see the new item price you have chosen. You can also see the previous list price and shipping price.
- If you want to edit individual item prices, click the price under that item and enter the new price you want to charge.
- 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.
- Select the items you want to edit.
- 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 will apply to all items in your shop that you reviewed and approved, and all items $35 USD and over will have a FREE shipping badge that’s visible to US buyers.
The new item prices will be the same for all Etsy shoppers, including shoppers outside of the US.
How shipping profiles are adjusted
If you had a shipping profile that had both items over and under $35 USD, all items $35 USD and over are moved to a new shipping profile. The new profile has the same name as the old profile, followed by (Reduced shipping). This new shipping profile sets both your US and domestic shipping prices to 0.00, and adjusts your shipping prices to other countries to account for the default adjustment to your item prices made when you chose either domestic or US shipping.
I’m a Canadian seller who uses calculated shipping
Currently the smart pricing tool can’t adjust prices for items with calculated shipping. You can use the smart pricing tool to adjust prices for items without calculated shipping. If you have items with calculated shipping, learn how to adjust your item prices.
How is my recommendation on how to recover shipping costs for items under $35 USD determined?
We calculated how you can adjust item prices under $35 USD to recover shipping costs, for times when your items ship free as part of an $35+ USD order.
This number comes from a calculation of the shipping 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 shipping 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 shipping on orders of $35+ USD.