For online shoppers, shipping costs and speed are often make-or-break factors in deciding whether to click "Buy." And on a marketplace like Etsy, where many sellers are small-scale crafters, artists, and vintage curators, being able to ship affordably and reliably is crucial for competing with larger retailers.
That‘s where Etsy‘s partnership with the United States Postal Service (USPS) comes in. By offering discounted rates and integrated shipping tools to sellers, Etsy aims to level the playing field and empower creative entrepreneurs to provide a high-quality shipping experience.
But as a shopper, you may be wondering: What exactly is the deal with Etsy and USPS? How does it impact the shipping options and prices you see at checkout? And most importantly, can you count on Etsy sellers to get your order to you quickly and in one piece?
In this comprehensive guide, we‘ll unpack everything you need to know about Etsy‘s use of USPS from a picky shopper‘s perspective. Plus, we‘ll share some insider tips for Etsy sellers looking to up their shipping game.
Etsy Shipping Volume & USPS Usage: By the Numbers
First, let‘s talk scale. In 2022, over 8.1 million active sellers used Etsy‘s platform, up from 5.7 million in 2021. This growing army of independent artisans and curators sold over $12.5 billion worth of goods last year—and every single one of those orders needed to be shipped.
So how does Etsy handle all that volume? The short answer is: with a lot of help from USPS. While Etsy sellers can use any carrier they choose, USPS is by far the most popular option, accounting for over 80% of US packages shipped via Etsy.
Here‘s a quick breakdown of some key Etsy shipping statistics:
| Metric | 2022 |
|---|---|
| Total value of goods sold | $12.5 billion |
| Number of active sellers | 8.1 million |
| Number of active buyers | 89.4 million |
| Percentage of US packages shipped via USPS | 80%+ |
| Etsy US shipping revenue | $541 million |
Sources: Etsy 2022 Investor Presentation, Etsy Q3 2022 Earnings Report
As you can see, the vast majority of Etsy‘s US shipping volume flows through USPS. In fact, Etsy is one of USPS‘s largest ecommerce customers, which gives them the clout to negotiate favorable rates and services for sellers.
How Etsy‘s USPS Partnership Benefits Shoppers
Okay, but what does all of this mean for you as an Etsy shopper? In a nutshell, Etsy‘s close relationship with USPS allows sellers to offer more affordable and reliable shipping options at checkout. And that‘s a very good thing for customers.
In a recent survey of US online shoppers, 66% said that high shipping costs are the top reason they abandon their cart before purchasing. Meanwhile, 40% said they‘ve canceled an order due to slow delivery times. Basically, buyers want fast, cheap shipping—and if they don‘t get it, they‘ll shop elsewhere.
By leveraging USPS‘s nationwide network and volume discounts, many Etsy sellers are able to provide the affordable and speedy shipping options that shoppers crave. In fact, the average shipping cost on Etsy is just $4.90 per order in the US. Compare that to the industry average of $10+ for a small package and it‘s clear that Etsy‘s USPS partnership is saving shoppers money.
But cost is just one piece of the puzzle. Etsy shoppers also want to feel confident that their order will arrive on time and without any hiccups. Fortunately, USPS‘s reliable service and included tracking give buyers peace of mind. A full 98% of USPS First-Class and Priority Mail packages are successfully delivered within their estimated timeframe. And if something does go wrong, Etsy has a robust case system to help resolve issues between buyers and sellers.
From a picky shopper‘s perspective, Etsy‘s use of USPS is a major selling point. It shows that the marketplace is prioritizing customer experience and giving their sellers the tools they need to compete in today‘s ecommerce landscape. When shipping is this seamless, it‘s easier to take a chance on that unique, handcrafted item from a small Etsy shop.
The Impact of Etsy Shipping Labels on Seller Success
Now let‘s flip the script and look at how Etsy‘s shipping setup benefits sellers. After all, one of Etsy‘s core values is to "Keep Commerce Human"—and that means empowering creative entrepreneurs to build thriving businesses on their own terms.
At the heart of Etsy‘s seller shipping toolkit is Etsy Shipping Labels. This feature allows sellers to purchase discounted USPS postage and print shipping labels directly from their Etsy shop. No need to stand in line at the post office or fumble with different carrier accounts.
The beauty of Etsy Shipping Labels is that they make it dead simple for sellers to access volume discounts that would normally only be available to huge retailers. We‘re talking up to 30% off USPS Commercial Plus pricing on popular mail classes like First-Class Package, Priority Mail, and Priority Mail Express.
For lower-volume sellers, those savings can add up quickly. Let‘s say you‘re shipping 20 orders per week at an average cost of $5 each. By using Etsy Shipping Labels instead of retail USPS rates, you could save over $500 per year on postage alone. That‘s a hefty chunk of change that can be reinvested in your business or passed along to customers through free shipping offers and promotions.
Speaking of free shipping, that‘s another area where Etsy Shipping Labels shine. In July 2019, Etsy unveiled a new free shipping initiative aimed at getting more sellers to offer free US shipping on orders of $35 or more. The goal was to make Etsy‘s marketplace more attractive to shoppers who have come to expect free delivery as table stakes.
To sweeten the deal, Etsy gave priority search placement to items eligible for free shipping. Suddenly, sellers had a major incentive to bake shipping costs into their item prices and eat the cost of delivery. But providing "free" shipping is only viable if your postage costs are low enough to absorb. Enter Etsy Shipping Labels.
By accessing USPS Commercial Plus rates, sellers can realistically offer free shipping without tanking their margins. In fact, Etsy found that shops who adopted its free shipping tools saw a 7% increase in average order value compared to those who didn‘t. Buyers also love the simplicity of not having to calculate shipping at checkout.
Today, a whopping 84% of items on Etsy ship for free to US buyers. And while correlation doesn‘t equal causation, it‘s worth noting that Etsy‘s revenues surged by 35% year-over-year in 2021, far outpacing the overall ecommerce growth rate. Would Etsy have seen such stellar results without its free shipping push and discounted USPS labels? It‘s impossible to say for sure, but it certainly didn‘t hurt.
A Seller‘s Guide to Etsy Shipping Best Practices
Alright, sellers, this section is for you. We‘ve covered why Etsy‘s partnership with USPS is a boon for your business. But what does it actually take to be a shipping superstar on Etsy? Here are some tips and best practices to keep in mind:
1. Use Etsy Shipping Labels
This one‘s a no-brainer. Purchasing discounted USPS postage through Etsy Shipping Labels is the easiest way to save money on shipping and streamline your fulfillment process. You can print labels in bulk, schedule free pickups, and automatically transfer tracking info to buyers. Don‘t leave free money on the table!
2. Offer Free Shipping
As we mentioned earlier, Etsy gives search priority to listings that ship free on orders of $35 or more. By incorporating shipping costs into your item prices (or slightly raising prices to cover shipping), you can offer "free" shipping without sacrificing your bottom line. It‘s a proven way to boost your shop‘s visibility and conversion rate.
3. Be Transparent About Processing Times
Etsy shoppers are generally pretty understanding that handmade and vintage items may take a bit longer to ship than mass-produced goods. Just be upfront about your processing times in your listing and shop policies. If you need 3-5 business days to make and package an item before shipping, say so. Setting clear expectations from the start will help avoid delays and miscommunications down the road.
4. Choose the Right Mail Class
While USPS First-Class Package is the cheapest option for most lightweight shipments, it‘s not always the fastest. For items over 1 lb or shipments that need to arrive quickly, consider using Priority Mail instead. With 1-3 day delivery and included insurance, it‘s a reliable choice that won‘t break the bank. For the ultimate in speed, splurge for Priority Mail Express.
5. Don‘t Skimp on Packaging
The last thing you want is for your carefully crafted items to arrive damaged or broken. Invest in high-quality, protective packaging materials like bubble wrap, packing peanuts, and sturdy boxes. Etsy even offers free USPS Flat Rate boxes and mailers to sellers, so there‘s no excuse not to secure your shipments properly. A little extra attention to packaging can save you a lot of headaches (and negative reviews) in the long run.
Bonus Tip: Use Etsy‘s Free Shipping Supplies
Did you know that Etsy offers free USPS co-branded packaging supplies to sellers? It‘s true! You can order Flat Rate boxes and envelopes, as well as protective mailers and labels, directly through your Etsy account. Using these free supplies is a great way to save money and give your shipments a clean, professional look.
While Etsy‘s shipping setup is fairly user-friendly, it‘s not entirely foolproof. Here are some of the most common pain points sellers encounter when shipping with Etsy and USPS, along with some troubleshooting tips:
Issue #1: Incorrect Address
If a buyer provides an incomplete or incorrect shipping address, it can cause delays and headaches for everyone involved. As a seller, your best bet is to reach out to the buyer ASAP and ask them to confirm or update their address in Etsy‘s system. If the order has already shipped, you can try contacting USPS to reroute the package, but there may be additional fees involved.
Issue #2: Lost or Damaged Package
Unfortunately, sometimes packages get lost or damaged in transit, even when you‘ve done everything right on your end. If a buyer reports a missing or damaged shipment, first check the tracking info to see if there are any clues about what happened. If the package is truly lost, you can file a claim with USPS to request reimbursement. For damaged items, consider offering the buyer a partial refund or replacement depending on the severity of the issue.
Issue #3: Shipping Label Glitches
In rare cases, sellers may encounter technical glitches when trying to purchase or print shipping labels through Etsy. Common problems include labels printing with incorrect information or not printing at all. If this happens to you, first try refreshing the page and double-checking that all your shipping details are entered correctly. If the issue persists, reach out to Etsy support for assistance.
Remember, even the most seasoned Etsy sellers run into shipping snafus from time to time. The key is to stay calm, communicate openly with your buyers, and take advantage of Etsy‘s seller resources and support channels. With a little troubleshooting (and a lot of deep breaths), you‘ll be back to shipping like a pro in no time.
How Etsy‘s Shipping Stacks Up to Other Marketplaces
Etsy may be the go-to destination for unique, handcrafted goods, but it‘s far from the only game in town. Online marketplaces like eBay, Amazon Handmade, and standalone ecommerce platforms like Shopify all offer their own shipping solutions for sellers. So how does Etsy‘s USPS partnership compare?
Let‘s start with eBay. Like Etsy, eBay has negotiated discounted rates with USPS for its sellers, as well as offering integrated label printing. However, eBay‘s USPS discounts top out at around 25% off retail pricing, compared to Etsy‘s 30% off Commercial Plus pricing. eBay also charges sellers a small fee (typically less than $0.30) to purchase labels through its platform, while Etsy Shipping Labels are free to use.
Amazon Handmade is a more direct competitor to Etsy, catering specifically to artisans and crafters. But when it comes to shipping, Amazon Handmade sellers are subject to the same strict requirements as all other Amazon sellers. That means offering free shipping on orders over $25, as well as meeting tight delivery deadlines (usually 1-2 days for domestic orders). While Amazon does offer discounted rates with USPS and other carriers, the pressure to provide free, fast shipping can be tough for small-scale makers to manage.
Finally, there‘s Shopify, the ecommerce platform giant that powers over 1.7 million online stores. Shopify offers its own shipping solution called Shopify Shipping, which includes discounted rates with USPS, UPS, DHL, and Canada Post. Shopify‘s USPS rates are very similar to Etsy‘s, with savings of up to 30% off retail. However, Shopify sellers must pay a monthly subscription fee (starting at $29) to access these discounts, whereas Etsy Shipping Labels are available to all sellers at no additional cost.
All in all, Etsy‘s shipping setup stacks up favorably to other major marketplaces. The combination of deeply discounted USPS rates, free integrated label purchasing, and seller-friendly policies like no listing fees or mandatory free shipping make it an appealing choice for independent artists and vintage curators.
Of course, that‘s not to say there isn‘t room for improvement. Some areas where Etsy could potentially enhance its shipping experience even further include:
- Negotiating even steeper discounts with USPS and other carriers as its shipping volume grows
- Expanding free packaging supplies to include more sizes and styles
- Offering more robust insurance options for high-value items
- Providing real-time shipping quotes and delivery estimates to buyers at checkout
- Giving sellers more tools to manage shipping profiles, automate label purchasing, and print packing slips
- Exploring partnerships with regional carriers for faster, cheaper delivery in certain areas
As ecommerce continues to evolve and buyer expectations around shipping get ever higher, Etsy will need to stay nimble and proactive about optimizing its shipping offerings. Luckily, the marketplace has a solid foundation to build on with its long-standing USPS partnership.
Final Thoughts
When it comes to shipping, Etsy and USPS are like peanut butter and jelly—a classic combination that just works. For sellers, Etsy‘s integrated USPS tools make it easy and affordable to get orders out the door quickly. And for shoppers, the fast, reliable shipping options powered by USPS are a major draw compared to other marketplaces.
But Etsy‘s shipping success story isn‘t just about logistics and labels. It‘s about empowering creative entrepreneurs to turn their passions into viable businesses. By taking the hassle and guesswork out of shipping, Etsy frees up sellers to focus on what they do best: making and curating beautiful, one-of-a-kind products. And that, in turn, keeps discerning shoppers coming back to Etsy for all their gifting and collecting needs.
So the next time you‘re on the hunt for that perfect handmade or vintage treasure, rest assured that Etsy and USPS have your back. With a little savvy on the seller‘s part and a lot of helpful shipping tools, your package should arrive safe, sound, and ready to delight. And really, isn‘t that what online shopping is all about?
