Etsy is the premier platform for selling handmade and vintage goods online. The question is, how do you get your products into your customers’ hands after they place an order?
While you could send out individual orders using United States Postal Service (USPS) flat-rate shipping boxes, this approach is inefficient, costly and time-consuming. The good news is that you don’t have to ship orders through USPS — you can ship directly with Etsy. Here’s how.
Understanding Etsy Fees Prior to Shipping
Before we go over how to ship with Etsy, it’s important to highlight the three types of fees you’ll encounter on the platform. Understanding these fees will help you set competitive prices and navigate the shipping process more easily.
Listing Fees
Etsy charges listing fees for allowing you to display your products on their platform. They’re generally quite low, so they shouldn’t cut into your profit margins too much.
Transaction Fees
Etsy also charges transaction fees, which you’ll incur anytime you process a payment. These are also relatively low, though it’s important to account for them when setting product pricing.
Shipping Fees
Shipping fees are the largest cost you’ll face when selling products on Etsy. Shipping costs can range from a couple of dollars to 10 dollars or more, depending on several factors.
Even so, Etsy’s shipping fees are generally lower than USPS’s, meaning you can save money by shipping directly through the platform.
Including the Shipping Cost in the Customer’s Price
By calculating these fees, you can include them in the advertised price of your product. That way, you can avoid surprising customers with hidden charges when they reach the checkout page.
Let’s say you want to list an item for $7 and will incur a total of $3 in fees. If you put the item up for $7 and add $3 to the price at checkout, customers may be less likely to buy it. However, if you list the item for $10 and include “free” shipping, customers will believe they’re getting a better deal.
7 Steps for Shipping with Etsy
Now that we’ve covered the basics of fees and shipping costs, let’s explore how to ship with Etsy.
Step 1: Set Up a Shipping Profile
An Etsy shipping profile is a feature that allows you to select pre-determined shipping options for your customers. For instance, you could offer flat-rate shipping only or allow customers to choose from one of several shipping options.
While offering only one type of shipping will make things easier on your end, it may discourage some customers from purchasing your products. Therefore, offering at least one expedited option is generally a good idea.
Step 2: Choose Your Shipping Strategy
Next, you’ll need to decide on your shipping strategy. You can offer a single shipping method (i.e., USPS flat rate) or provide customers with multiple options.
Your shipping strategy should outline what sort of shipping options you will offer and determine the types of packaging you’ll use. Offering custom packaging can improve the buyer experience, but it will also drive up shipping costs.
Step 3: Set Competitive Pricing
After you’ve settled on a shipping strategy, it’s time to price your product. If your prices are too high, you won’t generate enough sales volume to turn a meaningful profit. Conversely, setting prices too low can also negatively impact profits.
With that in mind, you should look for the pricing sweet spot that allows you to compete with similar businesses while generating strong enough revenue to grow your company.
Step 4: Order Etsy Shipping Labels
Etsy shipping labels allow you to ship with Canada Post, FedEx or USPS. These universal labels meet the requirements of all three carriers.
When you purchase an Etsy label, the platform will automatically list the product as shipped and send an update to your customer. After you purchase the label, you print it out, stick it on your package and drop it off for delivery.
Step 5: Set Up a Shipping Policy
Your shipping policy will outline the procedures you follow when sending out customer orders. A well-written policy will build trust between your business and its patrons and help protect you should a dispute arise.
When creating your policy, make sure it mirrors Etsy’s requirements to stay in good standing with the platform and avoid incurring penalties.
Step 6: Check Shipping Supplies Often
Maintaining an adequate stock of shipping supplies is a critical component of e-commerce fulfillment. If you run short on supplies, shipping times will increase, and you may be unable to fulfill pending orders. As such, you should constantly monitor your shipping supply inventory. If supplies begin to dwindle, place a new order immediately.
Step 7: Plan Days to Send Out Shipments
To optimize your e-commerce logistics processes, you must plan out days to send shipments. Otherwise, pending orders will stack up, and you’ll struggle to get shipments out on time.
Unfortunately, Etsy doesn’t offer any fulfillment or inventory management services to assist with this process. The good news is you can partner with a third-party e-commerce shipping company to alleviate this major business challenge.
Your logistics partner will provide services like inventory management, packaging products and arrangement of shipments with carriers. They’ll efficiently fulfill orders so you can focus on making products and serving your customers.
Simplify Etsy Shipping by Investing in the Right Tools
Navigating the challenges of domestic shipping can be daunting, even when working with a user-friendly platform like Etsy; arranging international shipping can be even more complicated.
You can overcome these hurdles and efficiently ship products sold through Etsy by investing in the right technologies and partnerships. One of the best strategies is to partner with a third-party logistics provider to assist with order fulfillment, shipping and inventory management.
FAQ
Typically, it’s cheaper to ship with Etsy than to send items through USPS. However, it’s a good idea to periodically check rates to ensure you’re minimizing your shipping costs.
Yes. Just make sure you use flat rate boxes when offering standard shipping, as failing to do so could cause you to incur additional fees.
Etsy allows you to handwrite shipping labels instead of purchasing labels from the platform. While doing so will save you a few dollars, it’s also time-consuming.
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