Breaking News: Etsy Launches Buyer Membership with Free Shipping

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Etsy has recently unveiled a new buyer membership program that promises to change the landscape for both buyers and sellers on the platform. This initiative aims to offer perks similar to those found in Amazon Prime, including free shipping, which could significantly impact seller strategies and customer experiences.

Key Takeaways

Etsy's new membership program offers free domestic shipping and exclusive deals for buyers.
Sellers will be reimbursed for shipping costs when members purchase their products.
Sellers currently offering free shipping may need to adjust their strategies to benefit from the new program.
Overview of the Etsy Insider Membership Program

Etsy's new membership program, dubbed the Etsy Insider, is designed to provide buyers with enticing benefits. Members will enjoy free domestic shipping on all orders, a special birthday bonus, and a limited edition tote bag designed by an Etsy seller. Additionally, Etsy is collaborating with sellers to offer exclusive deals and promotions to members.

This program appears to be a strategic move by Etsy to compete with giants like Amazon, which has successfully implemented a similar model with its Prime membership. The question on many sellers' minds is how this will affect their operations and what steps they should take moving forward.

Shipping Costs and Reimbursements

One of the most significant aspects of the Etsy Insider program is how it handles shipping costs. Sellers are understandably concerned about whether they will still be responsible for shipping fees when a member makes a purchase. The good news is that sellers will not incur shipping costs for Insider members. Instead, Etsy will reimburse sellers for the shipping label costs.

For example, if a seller's shipping cost is $5 and a member purchases an item, Etsy will cover that cost, allowing sellers to see the reimbursement reflected in their transactions. This means that sellers can potentially save a considerable amount on shipping costs, especially if they have a high volume of orders.

Potential Savings for Sellers

To illustrate the potential savings, consider a seller who processes 100 orders a week, with 10% of those orders coming from Etsy Insider members. If each shipping label costs $5, the seller would save $50 weekly due to the reimbursement for shipping costs. This is a significant benefit that sellers should not overlook.

Adjusting Your Shipping Strategy

For sellers who already offer free shipping, the introduction of the Etsy Insider program raises a crucial question: What should you do now? Since sellers who provide free shipping will not receive the reimbursement, it may be wise to reconsider your shipping strategy. Here are some suggestions:

Start Charging for Shipping: Consider implementing a shipping fee to qualify for the reimbursement. You can still offer free shipping incentives for orders over a certain amount, such as $35, which Etsy recommends for an SEO boost.
Offer Discounted Shipping: If you decide to charge for shipping, consider charging a lower rate than your actual shipping costs. For instance, if your shipping typically costs $4 to $6, you might charge $2.99. This approach can help maintain customer satisfaction while allowing you to benefit from the new program.
Incorporate Shipping Costs into Product Prices: Many sellers already adjust their pricing to include shipping costs. If your item is priced at $25, you could list it at $28 with free shipping. Alternatively, you can reverse this by charging for shipping separately, which may help you take advantage of the Etsy Insider program.
Utilize Shipping Profiles: Etsy allows sellers to set up different shipping profiles. This feature can help you manage various shipping costs based on the products you sell, making it easier to adjust your strategy as needed.
Conclusion

Etsy's new buyer membership program presents both challenges and opportunities for sellers. By understanding the implications of the program and adjusting your shipping strategies accordingly, you can position yourself to benefit from the changes. As Etsy rolls out this program, staying informed and adaptable will be key to thriving in this evolving marketplace.

Embrace the changes, and consider how you can leverage the Etsy Insider program to enhance your business and customer experience.

[melissahernandez]

Anyone else fed up with Etsy continually wanting us to change how we charge for shipping?! I changed to all free shipping after they pushed on us for so long, I caved. This was after setting up all the shipping profiles. Maybe I should just go back to calculated shipping now!

[susangibson]

I personally think Etsy shipping is the most complicated part of having an Etsy shop. Etsy seems to love adding harebrained schemes that aren’t thought out well to benefit them but complicate it for sellers.

[DianaZ]

Is this an automatic reimbursement or is there delay for processing?

[csroyal]

Not sure I follow the seller benefit to Insider free shipping. Yes you get it reimbursed, but you don't collect it from the "Insider" buyer in the first place (since it's free), therefore isn't it just a wash? I actually see it as a loss.... my shipping prices include packaging costs, which Etsy won't be reimbursing. I would have to increase product prices to cover that if I anticipate a lot of "Insider" sales.

[Justin_W]

I don't see this as a benefit to me at all as a seller. I build the shipping into the cost of the product to keep it simple. If I charge for shipping, the customer pays for shipping. Either way, I don't pay for shipping. What would Etsy reimburse the seller for? I'm not paying for shipping, the customer is. This video isn't making sense to me. Am I missing something?