HustleMath

Shipping Policy Optimizer

Free shipping? Flat rate? Calculated? Stop guessing. This calculator compares policies side-by-side and shows exactly what conversion lift you need to justify free shipping.

Policy comparisonBreak-even calcProfit by policyConversion lift

The Shipping Decision

Free shipping sells. Higher conversion, better search ranking, cleaner checkout. But you absorb the cost.
Flat rate is predictable. You know your cost, buyers know theirs. No surprises for either side.
Calculated is honest. Buyer pays actual cost. Works for heavy/odd items. May lose impatient buyers.

Shipping Strategy Tips

Price Psychology: "$35 with free shipping" feels better than "$27 + $8 shipping" to most buyers, even though it's identical. The exception: experienced buyers on platforms like eBay who filter by total price anyway.

Platform Algorithms: eBay explicitly boosts free shipping listings in search results. Mercari's "free shipping" filter is heavily used. If your platform rewards free shipping, it may be worth the margin hit.

Know Your Weight Breaks: USPS has major price jumps at 4oz, 8oz, 1lb, and 2lb. If you're just over a break, lighter packaging can save $2-4 per shipment. Priority Flat Rate can beat calculated for heavy items.

Calculate profit margins →Analyze flip potential →

Common Questions

Does free shipping really increase sales?

Studies show free shipping increases conversion by 10-30% on average. However, this varies by price point and category. For items under $20, buyers expect free shipping. For items over $100, they expect it less. The key is whether the conversion lift covers your shipping cost.

How do I calculate if free shipping is worth it?

Calculate your break-even: If shipping costs $8 and your current conversion is 5%, free shipping needs to boost conversion to at least 5.4% (assuming $150 AOV with 20% margin). This calculator does this math automatically for your specific situation.

What's the best shipping policy for each platform?

eBay: Free shipping boosts search ranking significantly. Poshmark: Shipping is fixed, but discounted shipping can help. Mercari: Free shipping filters are popular. Etsy: Calculated shipping is accepted for handmade. The best policy depends on your margins and competition.

Should I build shipping into my price?

Usually yes for items under $50. Buyers prefer "$25 free shipping" over "$18 + $7 shipping" even though it's the same. For expensive items, separate pricing can feel more transparent. Test both approaches with similar items.

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Shipping costs based on 2024 USPS rates. Actual costs vary by origin, destination, and service. Conversion lift assumptions are industry averages and will vary by category and price point.