Etsy Free Shipping Guarantee: The $35 Rule, Shipping Profiles and How to Price It
The Etsy free shipping guarantee explained: how the $35 rule works for US orders, how to set it up in shipping profiles, and how to price items so free shipping doesn’t eat your profit.
Etsy's US Free Shipping Guarantee means your shop promises free shipping to US buyers on orders of $35 or more. In return, Etsy prioritizes shops with the guarantee in US search results. You can still charge shipping on orders under $35. The key is pricing so the shipping cost is built into your item price.
How the $35 rule works
- The guarantee applies to orders shipped to US addresses totaling $35 USD or more from your shop.
- Shops offering it get priority in US search placement on Etsy.
- Orders under $35 can still carry a shipping charge you set.
- The threshold is per order, so a buyer combining two $20 items reaches $40 and ships free.
The guarantee is managed in Shop Manager > Settings > Shipping settings, where Etsy lets you apply (or remove) the free shipping guarantee for your shop. Some sellers also see Etsy's pricing tools offered during setup; if you use one, double-check your listing prices afterward.
Setting up shipping profiles
Shipping profiles let you assign the same shipping rules to many listings.
- Go to Shop Manager > Settings > Shipping settings.
- Create profiles by item type (e.g. "Small flat item", "Mug", "Large print").
- Set processing time, origin postcode and destinations for each.
- Enter accurate package weights and dimensions if you use calculated shipping.
- Apply the free shipping guarantee for US orders $35+.
- Assign each listing to the right profile and review a few listings to confirm.
Keep profiles few and clear. A mismatched profile is one of the most common reasons sellers lose money on shipping.
How to price free shipping
The idea: move the average shipping cost into the item price so your profit stays roughly the same.
| Before (paid shipping) | After (free shipping built in) | |
|---|---|---|
| Item price | $30.00 | $36.00 |
| Shipping charged | $6.00 | $0.00 |
| Buyer pays | $36.00 | $36.00 |
| Your shipping cost | $6.00 | $6.00 |
Because Etsy's 6.5% transaction fee is charged on the item price and on shipping, the fee is roughly the same whether the $6 sits in shipping or price. See the full fee breakdown.
Example: pricing a $28 item
Example: you sell a handmade candle at $28 with $7 shipping, total $35.
- Average label + packaging cost: $7.00
- New price with shipping built in: $35.00, shipping free
- Transaction fee (6.5% of $35): about $2.28, the same as before
- Payment processing (US 3% + $0.25): about $1.30, also the same
The buyer pays the same total. The difference is that a $35 listing qualifies by itself for free shipping and your shop benefits from the guarantee in US search.
For items under $35, you have choices:
- Charge shipping below $35 and let multi-item orders ship free.
- Build partial shipping into the price and charge a small shipping fee.
- Create bundles or sets priced at $35+.
Watch heavy or oversized items: if shipping costs more than you can absorb in the price, a separate profile and honest pricing beats losing money.
Common mistakes
- Raising prices without updating shipping profiles, so buyers pay twice.
- Forgetting international profiles, which aren't covered by the US guarantee.
- Underestimating packaging weight, which pushes labels into a higher price tier.
- Not checking margins on low-priced items in multi-item orders.
After changes, watch visits and conversion in Etsy Stats. If traffic dropped after a shipping change, this traffic recovery guide can help.
Free shipping checklist
- Average shipping + packaging cost calculated per product type
- Shipping profiles created per item type
- Weights and dimensions entered accurately
- Free shipping guarantee applied for US orders $35+
- Prices updated to include average shipping
- Every listing assigned to the correct profile
- International shipping priced separately
- Margins checked on your cheapest items
- Stats reviewed 2-4 weeks after the change
Frequently asked questions
Is Etsy's free shipping guarantee mandatory? No. It's optional, but Etsy prioritizes shops that offer free shipping on US orders of $35+ in US search.
Can I charge shipping on orders under $35? Yes. The guarantee only applies to US orders of $35 or more.
Does the guarantee apply to international orders? No. It covers orders shipped to US addresses. Set international rates in your shipping profiles.
Will I pay more Etsy fees if I build shipping into the price? Generally no. The transaction fee applies to both item price and shipping, so moving the cost between them doesn't change the fee much.
How Optify can help
When you change prices or shipping across many listings, Optify Seller Studio's bulk operations and publishing queue let you update listings in batches instead of editing them one by one.