How Etsy shipping affects profit
Buyer-paid shipping is not automatically profit. Add it to the order amount, estimate the transaction and payment fees charged on that amount, then subtract the shipping label and packaging you pay. A free-shipping offer removes the buyer-paid amount but leaves the label cost, so compare both scenarios before changing a listing.
What should sellers include?
- Actual label or carrier cost, including surcharges.
- Packaging, inserts, and postage supplies.
- Buyer-paid shipping and any shipping discount.
- Platform and payment fees that use shipping in their fee base.