Etsy Free Shipping Break-even

Find the new price to offer free shipping while protecting your margin. See profit before/after and breakeven units with conversion lift. Useful for Etsy SEO, listing optimization, and pricing strategy.

Key Benefits:

  • Protect margin while offering free shipping
  • Clear, simple pricing formula explained
  • Shows profit before/after and breakeven volume
  • Great for A/B tests and listing optimization
  • Supports pricing psychology and rounding decisions
  • Helps set expectations before enabling free shipping across listings
  • Compare impact across different shipping cost scenarios
  • Plan pricing strategy for seasonal shipping promotions
  • Optimize listing competitiveness without sacrificing profit
  • Make data-driven decisions about free shipping adoption

Etsy Free Shipping Break-even

Find the new price to offer free shipping while protecting your margin, and see how much lift you need to break even.

Share Your Scenario

Copy link with your current inputs

Etsy Free Shipping parameters
$

Your product cost including materials and labor.

$

Your current listed price without free shipping.

$

Average shipping cost you would absorb if offering free shipping.

%

Desired profit margin on the final price (after absorbing shipping).

%

Estimated increase in conversion rate when offering free shipping (e.g., 5–20%).

Etsy free shipping

New Price (Free Shipping)

$22.86

Price including free shipping to hit target margin

Profit per Order (Before)

$13.00

Profit per order before free shipping

Profit per Order (After)

$6.86

Profit per order after free shipping

Margin Before

52.0%

Margin before

Margin After

30.0%

Margin after (targeted)

Breakeven Units (to match profit)

1.72 orders

Orders needed with lift to match old profit

How This Works

To offer free shipping and still hit your target margin, we compute a new price that absorbs item cost and shipping cost. We also show the breakeven unitsrequired when your conversion rate increases by your expected lift.

Free Shipping Implementation Strategy

Testing Phase

  • Start with 3-5 best-selling items
  • Run A/B test for 2-4 weeks minimum
  • Track conversion rate, total revenue, and profit
  • Monitor competitor pricing during test

Full Rollout

  • Gradually expand to additional products
  • Update shipping profiles in Etsy settings
  • Communicate change in product descriptions
  • Monitor customer feedback and reviews

Pricing Psychology Tips

Round to psychological price points: $19.99, $25, $50, $75, $100

Consider charm pricing: Prices ending in 9 often feel more affordable

Bundle shipping mentally: Customers often don't calculate the true total cost

Emphasize value: "Free shipping included" sounds better than just a higher price

Margin Compression

Free shipping can compress margins if the price is not adjusted enough. Consider a slightly higher price or reducing shipping cost where possible.

Healthy Margin Maintained

Your new pricing maintains a healthy 30.0% margin while offering free shipping. This should be sustainable long-term.

Easy Breakeven

You only need 1.7 additional orders to break even. The conversion lift from free shipping should easily achieve this.

Frequently Asked Questions

Should I include packaging in item cost?

Yes. Include any per-order costs such as materials, packaging, inserts, and handling to avoid margin surprises.

How do I estimate conversion lift?

Review your niche averages, competitor listings, and consider running a timed A/B test.

What if shipping varies a lot?

Use your average shipping cost or a weighted average by destination to keep estimates realistic.

Will free shipping improve Etsy SEO?

Free shipping can improve click-through and conversion, which may indirectly help listing performance. Always balance price competitiveness and perceived value.

Should I adjust for platform fees?

This tool focuses on price and shipping economics. When finalizing prices, ensure platform fees and taxes are accounted for in your business margins.

What conversion lift is realistic for free shipping?

Studies show 5-20% lifts are typical, with higher-priced items often seeing larger improvements. Start conservative with 10-15% estimates.

How do I handle international shipping with free shipping?

Consider offering free domestic shipping first, then add calculated international rates. You can also set shipping profiles by region.

Should I round my new price up or down?

Round to psychological price points ($19.99, $25, $50) that feel natural for your category while maintaining your target margin.

Can I offer free shipping on some items but not others?

Yes, start with your best-selling or highest-margin items to test the impact before rolling out across your entire shop.

How long should I test free shipping before making a decision?

Allow at least 2-4 weeks for meaningful data, accounting for seasonality and ensuring adequate order volume for statistical significance.

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Results are estimates for informational purposes only. Consult professionals for important decisions.

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