How Does Etsy Shipping Work?

If you are running an eCommerce business and shipping items both domestically and internationally or seeking to expand your customer base, Etsy can come in handy. 

Etsy is a global online marketplace that focuses on selling handmade, vintage, and craft items. With having nearly 23.76 million active customers and 378,000 sellers, you always have a huge opportunity to sell your products. 

One concern for business owners, however, is shipping through Etsy. They have several questions in their mind such as “Does Etsy shipping work?” or “How does shipping work on Etsy”. 

In this article, we will discuss “How does shipping work on Etsy as a seller” or “How much does Etsy charge for shipping” and more. 

Setting up Shipping on Etsy

To get answer to the question “How does shipping work with Etsy”, we need to go through the steps to set shipping on Etsy:

1. Access Etsy Shipping Settings: 

Go to Etsy Shop Manager.

Navigate to “Settings” and then “Delivery settings”.

2. Create or Edit a Shipping Profile: 

Click on “Create profile” or “Edit” next to an existing profile.

3. Select Calculated or Fixed Shipping: 

Select “Calculate them for me” for calculated shipping or “Enter fixed prices manually” for fixed rates.

4. Calculated Shipping Setup (if chosen):

Input Origin Postal Code: This determines the base location for shipping calculations. 

Set Processing Time: How long it takes to prepare an order for shipping. 

Specify Delivery Destinations: Choose the countries you’ll ship to, or select “All countries”. 

Choose Shipping Services: Select the carriers and services you want to offer (e.g., USPS, FedEx). 

5. Fixed Shipping Setup (if chosen):

Set Shipping Prices: Manually enter the shipping costs for each listing or profile. 

Consider Factors: Factors such as item weight, size, and destination can affect your fixed rates. 

6. Advanced Options:

Add Handling Fees: You can include handling fees in the total shipping cost. 

Create Label Presets: Save common shipping configurations for faster label creation. 

Understanding Calculated Shipping:

Automatic Calculation:

Etsy’s calculated shipping automatically determines shipping costs based on item size, weight, and the buyer’s location.

Inputting Details:

You need to provide the item’s dimensions, weight, and packaging information.

Integration with Shipping Labels:

The package details you provide are automatically used when creating shipping labels. 

Setting Fixed Shipping Rates:

Manual Input: You set a specific shipping price for each listing or profile. 

Consider Shipping Costs: Consider shipping costs like postage, packaging materials, and potential fuel surcharges when setting fixed rates. 

Adjust for Item Size and Weight: You may need to adjust fixed rates based on the size and weight of different items. 

Choosing Between Calculated and Fixed Shipping:

Calculated Shipping:

Ideal for sellers who ship a wide range of item sizes and weights, or who want to ensure accurate shipping costs. 

Fixed Shipping:

Suitable for sellers who want to offer a consistent shipping price, or who are selling products that are similar in size and weight.

Hope you have got the answer to the question “how Etsy shipping works”.

Purchasing and Printing Shipping Labels

Purchasing shipping labels directly through Etsy has several advantages, including discounted rates, streamlined fulfillment, and automated steps like address filling and order marking as shipped.

The Process of Buying and Printing Labels from Carriers:

To buy and print shipping labels from carriers like USPS, UPS, or FedEx, you generally need to create an account, enter shipping details, and then print the generated label.

The process is below:

1. Select Your Carrier and Sign Up:

Select your preferred carrier (USPS, UPS, FedEx, etc.).

Create an account on the carrier’s website or sign in if you already have one. 

2. Enter Shipping Information:

Enter the recipient’s address, phone number, and package details (weight, dimensions, etc.).

Add any essential special instructions or preferences for the shipment.

Select your desired shipping service and method. 

3. Generate and Print the Label:

The carrier’s system will automatically generate the shipping label based on your input. 

You can usually print the label directly from your browser or save it as a PDF. 

Alternatively, you can use a label printer for better quality. 

4. Batch Processing (for high-volume shippers):

Some systems allow you to process multiple shipments at once and print labels in bulk. 

5. Third-Party Solutions:

Many third-party platforms offer integrated label generation and printing for various carriers. 

Additional Tips:

• Ensure you have the necessary printer software installed and configured. 
• Consider using label printers designed for shipping labels for better quality and faster printing. 
• Review your shipping information carefully before printing the label to avoid errors.

Using External Shipping Services and how to Integrate them with Etsy Orders:

To integrate external shipping services like FedEx with Etsy, sellers can purchase shipping labels through Etsy’s platform, or use other methods like PirateShip to manage orders and print labels. 

Sellers can also leverage regional eCom carriers like ShippingChimp to get the most affordable rates when shipping with Etsy. Bulk label generation is easy. 

Sellers can then print these labels and use them for shipping, while also updating tracking information in their Etsy Shop Manager. 

Here are more details:

1. Using Etsy’s Built-in Shipping Features:

Purchase Labels:

In your Shop Manager, you can select an order and click “Complete order” to purchase a shipping label through Etsy’s integrated services like FedEx. 

Enter Details:

Provide the necessary details, including shipping method, package type, weight, and dimensions. 

Print Label:

Once you have purchased the label, you can print it out and attach it to your package. 

Update Tracking:

Add the tracking information to the order on Etsy. 

2. Using Third-Party Integration Services:

Shipstation:

Connect Shipstation to your Etsy store and use its features to manage orders, print labels, and automate fulfillment.

PirateShip:

Similarly, PirateShip can be connected to Etsy to help with label printing and tracking. 

3. Managing Shipping Profiles:

• Set up different shipping profiles for various regions or shipping methods.
• Use shipping profiles to quickly update multiple listings with similar shipping costs. 

4. Considerations for International Shipping:

Set Rates: Make sure you have set rates for every country you want to ship to.

Customs Declarations: Understand customs regulations for international shipping and declare your goods accurately. 

5. Completing Orders:

Mark as Complete: Once you’ve shipped the order, mark it as complete in your Etsy Shop Manager. 

Dispatch Notification: Etsy will send a dispatch notification to the buyer. 

Manage Purchased Labels: You can access all purchased labels from your Completed orders tab.

The benefits of Purchasing and Printing are below:

1. Discounted Shipping Rates:

Sellers can access discounted volume shipping rates, possibly saving up to 30% compared to USPS retail rates.

This applies to both domestic and international shipments. 

2. Efficient Fulfillment:

Labels can be purchased and printed directly from your Etsy Shop Manager, eliminating the need to visit a post office.

The process is automated: Etsy automatically fills in the buyer’s address and marks the order as shipped.

Tracking is included on most services, providing buyers with order updates. 

3. Positive Impact on Star Seller Score:

Using shipping labels purchased on Etsy can positively influence your Star Seller shipping score, which is a key indicator of customer service for potential buyers. 

4. Improved Purchase Protection:

Purchasing shipping labels on Etsy ensures your order’s eligibility for Etsy’s Purchase Protection program. 

5. Convenience and Time Savings:

Sellers can save time and effort by purchasing and printing labels from their home or office. 

The automated process reduces the need for manual data entry and order status updates. 

6. Access to Various Carriers:

Etsy offers shipping labels from different carriers like USPS, FedEx, and Canada Post, allowing sellers to choose the best option for their needs. 

7. Easy Refund Process:

Unused labels can be easily refunded, providing flexibility and peace of mind.

Understanding Etsy Shipping Fees

Etsy charges various fees for sellers, including listing fees, transaction fees, payment processing fees, and shipping fees. 

Detailed Breakdown:

Listing Fees:

Etsy charges a small fee (currently CA$0.25 in Canada and $0.20 in the US) to list a product in your shop. This fee is charged each time you create a new listing or renew an existing one. 

Transaction Fees:

This is a percentage (currently 6.5%) of the sale price, which includes the item price, shipping, and any applicable gift wrapping fees. It’s important to note that the transaction fee does not apply to sales tax if you are selling from the US. 

Payment Processing Fees:

When you use Etsy Payments, a fee is charged for processing each transaction. The specific fees vary depending on your location and the payment method used. Payment processing fee is 3 to 4 percent + CA$0.25 percent.

Shipping Fees:

These fees are charged by the shipping carrier and the specifics of the package (weight, dimensions, destination, etc.). Etsy also offers the ability to purchase postage labels through their platform.

Strategies for Offering Free Shipping

To offer free shipping to your customers, you can implement strategies like setting minimum order values, limiting free shipping to specific products, or building shipping costs into product prices.

More details are below:

1. Set a Minimum Order Value:

Offer free shipping for orders that exceed a certain threshold. This encourages customers to spend more, and increase their average order value (AOV). Calculate the threshold based on your AOV and profit margins. 

2. Limit Free Shipping to Specific Products or Categories:

Offer free shipping on high-margin items or specific categories. This helps manage the cost of free shipping by focusing on profitable products. 

3. Build Free Shipping Costs into Product Pricing:

Adjust product prices to account for shipping costs. This can be a good option for products with lower competition or where the price increase is not a significant barrier to purchase. 

4. Negotiate with Shipping Carriers:

Seek better rates and discounts with shipping carriers. Lower shipping costs can help offset the cost of offering free shipping. eCom-specific carriers like ShippingChimp can offer better rates than National carriers. 

5. Reward Specific Actions with Free Shipping:

Offer free shipping for first-time customers, repeat purchases, referrals, or other actions. This can encourage customer loyalty and repeat business. 

6. Consider Free Local Pickup:

Offer free local pickup for orders, especially for customers in close proximity. This can be a cost-effective way to offer free shipping while reducing delivery costs. 

7. Free Shipping Promotions:

Offer free shipping during holidays, special events, or promotions to drive urgency and increase sales. This can be a temporary strategy to boost sales during specific periods. 

8. Tiered Shipping:

Offer a slower, free shipping option alongside a faster, paid option. This allows customers to choose based on their needs and preferences, potentially encouraging them to pay for faster shipping. 

By implementing these strategies, you can effectively offer free shipping while maintaining profitability and boosting sales.

Best Practices for Etsy Shipping

If you are still thinking, “how does shipping on Etsy work”, sellers should accurately calculate shipping costs, keep customers informed about their orders, and package items securely. 

Etsy shipping best practices are below:

1. Accurate Shipping Cost Calculation:

Accurate Weight and Dimensions:

Calculate the weight and dimensions of your packages precisely to determine the correct postage costs. 

Carrier Comparisons:

Compare shipping rates from different carriers (like USPS, FedEx, etc.) to find the most cost-effective and reliable option. Regional carriers like ShippingChimp offer good prices. 

Understand Shipping Zones:

Be aware of different shipping zones within your country and internationally, as they can affect shipping costs. 

Include Shipping Costs:

Consider including shipping costs into your pricing or offer free shipping (at a set minimum purchase) to attract buyers. 

2. Keeping Customers Informed:

Clear Policies:

Set clear shipping, return, and exchange policies in your shop policies. 

Order Confirmation:

Send a confirmation email to buyers upon order placement, including estimated shipping times. 

Tracking Information:

Provide customers with tracking numbers as soon as your package is shipped. 

Shipping Updates:

Keep customers updated about their order’s progress, especially if there are any delays. 

3. Secure Packing:

Use Appropriate Packaging:

Choose packaging materials that are strong and suitable for the type of item you are shipping.

Protect Fragile Items:

Use ample padding (bubble wrap, packing peanuts) to protect fragile items during transit.

Properly Seal Packages:

Ensure your packages are securely sealed to prevent damage or items from falling out. 

4. Utilizing Etsy Features:

Print Shipping Labels:

Etsy allows you to purchase shipping labels directly through their platform, streamlining the shipping process. 

Etsy On-Platform Shipping:

If you’re using Etsy Payments or PayPal, you can print labels directly through your shop dashboard. 

Tracking and Insurance:

Utilize tracking and insurance options offered by carriers to protect your packages during transit. 

5. Additional Tips:

Free or Discounted Shipping:

Consider offering free or discounted shipping to encourage purchases and improve customer experience. 

International Shipping:

If you’re selling internationally, be aware of customs regulations and potential duties that buyers may be required to pay. 

Customer Service:

Provide excellent customer service to address any shipping-related concerns or issues promptly.

Handling Shipping Issues

When addressing customer complaints about lost or delayed shipments, a proactive and empathetic approach is key.

Key Steps in Handling Complaints:

1. Acknowledge and Apologize:

Promptly acknowledge the customer’s complaint and sincerely apologize for the delay or lost shipment. 

2. Explain the Situation:

Provide a clear and honest explanation for the delay or loss, without making excuses. 

3. Offer a Solution:

Propose a tangible solution, such as a revised delivery timeline, discount, or compensation. 

4. Follow Up:

Ensure the issue is resolved and follow up with the customer to confirm their satisfaction. 

5. Be Proactive:

Don’t wait for the customer to complain. Be proactive in communicating updates and potential problems. 

6. Empathize and Listen:

Listen actively to the customer’s concerns and show empathy for their situation. 

7. Offer Incentives:

Consider offering incentives like discounts or free shipping on future orders. 

8. Document Everything:

Keep records of all communications and resolutions for future reference. 

Example Scenario:

A customer calls to complain about a delayed shipment. Here’s how you might respond:

Acknowledge and Apologize:

“Thank you for calling, I understand you’re concerned about the delay of your order. We sincerely apologize for the inconvenience this has caused.” 

Explain the Situation:

“The delay is due to [explain the reason for the delay, e.g., unexpected weather, shipping hub backlog, etc.]. We are working diligently to resolve the issue.” 

Offer a Solution:

“To compensate for the delay, we would like to offer you [e.g., a discount on your next purchase, free expedited shipping on your next order, etc.]. We also expect your order will be delivered by [new delivery date].” 

Follow Up:

“I will personally follow up with you on [date] to ensure your order is delivered as promised.” 

By following these steps, you can transform a negative experience into an opportunity to build trust and demonstrate your commitment to customer satisfaction.

Conclusion

This blog post has dealt with the questions like “how does shipping on Etsy work” or “how to ship with Etsy” in detail. Creating and improving the Etsy shipping process, from profiles to policies, is critical for running a more efficient and profitable business on the platform. 

By crafting detailed profiles that clearly show shipping methods, costs, and delivery times, sellers can attract more buyers and build trust within the Etsy community. 

Implementing efficient shipping practices, such as using Etsy’s integrated shipping label feature and partnering with reliable carriers, streamlining operations, and reducing costs make a lot of difference. 

Enhancing the Etsy shipping process enables sellers to maximize efficiency, minimize errors, and ultimately grow in the competitive online marketplace. A seamless and thoughtful shipping experience contributes to the overall success and reputation of an Etsy Shop. If you liked this, check our detailed blog post on selling on Etsy Canada here. 

FAQs

Q1: What is calculated shipping, and how does it work?​

Ans: Calculated shipping, also known as carrier-calculated shipping, determines shipping costs at checkout based on factors like weight, dimensions, destination, and shipping service chosen by the customer. This allows businesses to pass on the exact cost of shipping from the carrier to the customer.

Q2: Can I purchase shipping labels directly through Etsy?​

Ans: You can purchase shipping labels directly through Etsy. Often, Etsy sellers use postage labels purchased through the platform to complete domestic orders. This process can be done on both the desktop and mobile versions of the Etsy site.

Q3: How are Etsy’s shipping fees structured?​

Ans: Etsy’s shipping fee structure for sellers involves a transaction fee based on the total sales price, including shipping and any applicable taxes, plus a listing fee for each item published. The transaction fee is 6.5% of the total sales price, including the shipping cost.

Q4: How do I handle international shipping on Etsy?

Ans: To handle international shipping on Etsy, sellers first need to set up their shipping profiles, defining the countries they will ship to and the associated shipping costs. Then, they can use Etsy’s shipping labels and potentially leverage platforms like ShippingChimp.

Q5: What are the best packaging practices for Etsy orders?

Ans: For optimal Etsy packaging, prioritize protection, aesthetics, and sustainability. Double-wrap fragile items and use eco-friendly materials like paper instead of plastic. Personalize your packaging with stickers, stamps, or ribbons, and consider including small gifts or branded items as a “thank you”.

Q6: What are Etsy’s policies on shipping times and delays?

Ans: Etsy’s shipping time policies depend on the seller’s location and the shipping service chosen by the buyer. Generally, domestic shipments within the same country can take 3-7 business days, while international shipments may take 7-21 days or more. Etsy sellers also have to comply with the policies of the chosen shipping carrier, such as ShippingChimp, FedEx, according to Etsy’s house rules. Delays can occur due to factors like customs, longer travel distances, and holidays.