In an earlier Etsy Seller Tip post, I outlined how to estimate shipping costs. While its still important to know what your shipping costs are, I’m suggesting here that you offer FREE SHIPPING! Unfortunately for small business, customers have some to expect it. if you use sites like eBay you may get a little taste of the kind of discounts major shipper are getting but most small businesses don’t have access to that kind of discount. Here are some ways tips and tricks to help shift your business to a a more competitive shipping model.
Raise Your Prices
Absorb the bulk of your shipping cost into the price of your item. This is a pretty simple strategy. If you can’t justify such a price increase absorb as much as you can.
Free Shipping on Orders Over $50
If you are getting multiple sales in a single order this is a good option for incorporating free shipping. It encourages more sales while leaving the customers feeling like they have gotten a great deal. Set the amount over equal to your average # items per sale + 1. So if you sell items averaging $8 and average 3 items per sale set the free shipping on orders over price at $35. If you sell items at $20 with 2 items, set it at $50 and so on. This does not work well for shops who do not already regularly sell multiple items per order.
$5 Flat Rate Shipping
$5 flat rate may be the lame little brother of free shipping but its a good second best. Maybe your shipping costs average $5 per item , if not you can try to raise your prices just enough to cover the difference. If your items fit in small flat rate boxes you are golden!