Free shipping when two items are bought together
Item...................................Earring 1..........................Earring 2
Cost with shipping built in .....15 USD ..........................20 USD
Weight ...............................5 ounces ..........................5 ounces
Cost alone to ship............. 1.5 USD ...........................1.5 USD
Cost to ship together....... 2.41 for both ...................2.41 for both
Profit using etsy fee’s...... 13.53 USD........................18.22 USD
calculator
(13.53 + 18.22) – 2.41 for shipping = 29.34 USD
Normal shipping when the two same items are bought together
Item................................ Earring 2............................. Earring 1
Cost without shipping......... 13.5 USD............................18.5 USD
Weight............................ 5 ounces............................... 5 ounces
Cost to ship alone.......... 1.5 USD ............................... 1.5 USD
Cost to ship together.... 2.41 for both ....................... 2.41 for both
Profit using etsy fee’s.. 12.14 USD..............................16.81 USD
calculator
12.14 + 16.81 = 28.95 USD
What you saved
29.34 – 28.95 = .39 USD
So you SAVED a total of 39 cents by offering free shipping! Yay! This happens because with free shipping the cost for items when shipped together is not reduced. Of course this only happens when items are shipped together. So what happens when items are shipped alone? I'll show you =)
One item with free shipping
Item: Earring 3
Cost with shipping built in: 40 USD
Weight: 5 ounces
Cost to ship: 1.5 USD
Profit using etsy fee’s calculator : 36.94 USD
Total profit: 35.44 USD
One item without free shipping
Item : Earring 3
Cost without shipping: 38.5 USD
Weight: 5 ounces
Cost to ship: 1.5 USD
Profit using etsy fee’s calculator : 35.53 USD
Total profit : 35.53 USD
35.53 – 35.44 = .09 USD
OH NO! You just lost 9 cents from offering free shipping! Thats a dime, you just lost a dime... that sucks! Okay, i was just kidding =) From my point of view, a dime isn't that bad.
A little more analysis
When shipping two items together you saved 39 cents. When you shipped an item alone, you lost 9 cents. That means you will break even if for every 3 items that you sell alone, you sell two items together.
Some general stuff about free shipping
Buyers love free shipping. Even more, etsy loves free shipping. Why does etsy love free shipping? Because for every item that has shipping built in, etsy gets some money. Etsy is a business, and the more items that sell with free shipping, the more money etsy gets. Since etsy loves free shipping, and buyers love free shipping, why shouldn't you love free shipping? Well, some people get a bit anxious about adding shipping costs to their prices. Some buyers get a bit anxious about free shipping because they think that the prices have been inflated. So free shipping is that great...
If you want to implement free shipping in your shop... I think the best thing to do is to build the shipping in from the beginning. That way you never have to increase your prices. And if you do want to increase your prices, just do it! One or two dollar increases aren't as noticeable as FREE SHIPPING in you item's name. And remember, what etsy likes, etsy supports.
etsy fee calculator : http://www.rolbe.com/etsy.htm
p.s. You don't have to offer free shipping, i was just laying out the facts =) You should do whatever you think is right for your business. Most importantly have fun =D And sorry about the junky formating... well what did you expect -.-
brought to you by junkshopgirl.
