Sun Oct 5 2025 14:21:51 |
Etsy Learns There's No Such Thing as Free Shipping
By: Ina Steiner
|
Sponsored Link
|
 Online buyers generally pay for shipping, but in 2019, Etsy compelled sellers to offer free shipping on their listings if they wanted visibility. But now that Etsy has skin in the game, it has learned what sellers have long asserted: there's no such thing as free shipping.
The hard lesson came after the marketplace offered free shipping to members of its invitation-only Etsy Insider loyalty program that it launched in closed beta in September 2024. During its second-quarter 2025 earnings call on July 30th, Etsy President Kruti Patel Goyal told Wall Street analysts that Etsy Insider did not provide scalable economics in its V1 (version 1) iteration.
Etsy CEO Josh Silverman elaborated, telling the analysts that Etsy would be launching a new version of the program that would continue to offer free shipping on millions of listings but would do it with a few more guardrails that would help Etsy "manage the cost a little bit better."
"Eligibility for shipping savings: Etsy will now cover up to $6 in shipping costs on the least expensive US domestic shipping option for orders over $15 per shop. This means that many orders will still ship free, but if shipping is more expensive than what we cover, the buyer will pay the difference. There's no change to the way that you're paid for shipping costs. Plus, we have great news for sellers outside of the US: Starting next year, we'll expand this benefit to international orders! Stay tuned for more information."
Previously, Etsy Insider members were responsible for the full cost of shipping for items where the shipping cost exceeded $20.
The expression "rules for thee but not for me" comes to mind, as Etsy has a different definition of "free shipping" for its own program. If shipping is costly, it will force buyers enrolled in its loyalty program to pay anything over $6 - but sellers have no such exemption. In fact, on March 3, 2025, Etsy removed the option sellers previously had to charge handling and package fees as part of shipping prices. |
|
|