Etsy tools · Updated October 2026

Should you offer free shipping on Etsy?

Free shipping doesn't have to cost you anything. You just move the postage into the price.

The same order, two ways

$28 + $6 shipping
Buyer pays$34.00
Listing fee−$0.20
Transaction 6.5%−$2.21
Processing 3% + $0.25−$1.27
Platform fees−$3.68
Your costs−$23.70
You keep$6.62 (19.5%)
$34, free shipping
Buyer pays$34.00
Listing fee−$0.20
Transaction 6.5%−$2.21
Processing 3% + $0.25−$1.27
Platform fees−$3.68
Your costs−$23.70
You keep$6.62 (19.5%)

You keep exactly the same either way: $6.62. Etsy charges its fees on the total the buyer pays, shipping included, so moving postage into the price changes nothing in fees.

Why sellers choose free shipping

  • Shoppers dislike surprise shipping costs at checkout, and a single price feels simpler.
  • Etsy has favoured US listings that offer free shipping, especially on orders of $35 or more, since it launched its free shipping push in 2019.

When it's harder

  • Heavy items: a $15 postage cost hidden in the price can make the item look expensive next to competitors.
  • International orders: you'll usually still charge shipping outside your own country.

Try these numbers in the calculator →

Etsy Shop Profit Tracker · about US$12

Want this worked out for your whole shop?

A spreadsheet for Excel and Google Sheets that logs every order and shows your true profit after Etsy fees, costs, expenses and your time. Monthly dashboard, suggested prices and a year-end summary for tax time.

See what's inside →
The tracker's dashboard showing monthly profit, sales, Etsy fees and charts

Questions sellers ask

Does free shipping cost more in Etsy fees?

No. Etsy charges fees on the total the buyer pays, so $28 plus $6 shipping and $34 with free shipping cost the same in fees.

Does free shipping help Etsy search ranking?

Etsy has given extra visibility to US listings with free shipping, particularly on orders of $35 or more.

Keep reading