Should you offer free shipping?

Free shipping is not a discount and it is not a fee trick. It is a decision to move the postage cost from the buyer's basket into your price — and whether that costs you anything depends entirely on what your platform charges commission on.

On Etsy, eBay and Amazon it makes no difference to your fees

These platforms charge commission on the total the buyer pays, including shipping. So $30 plus $6 shipping and $36 with free shipping produce the same revenue, the same fee and the same profit.

Line$30 + $6 shipping$36 free shipping
Buyer pays$36.00$36.00
Transaction fee (6.5%)-$2.34-$2.34
Payment processing (3% + $0.25)-$1.33-$1.33
Listing fee-$0.20-$0.20
Item cost-$12.00-$12.00
Shipping and packaging-$6.00-$6.00
Net profit$14.13$14.13

Identical. If your platform charges commission on shipping, the fee argument for or against free shipping does not exist — it is purely a question of what converts better.

On Poshmark and Vinted, baking postage into the price costs you

These platforms charge commission on the item price only. That changes the arithmetic, because every dollar you add to the price to cover postage is itself commissionable. At Poshmark's 20% rate, absorbing a $6 label by raising the price adds $1.20 in commission on top of the label itself — 20% of the amount you raised.

The practical rule: where commission applies to the item only, keep shipping as a separate charge if the platform lets you. Where commission applies to the whole order, choose whichever converts better and stop worrying about the fee.

What actually changes when you switch

Test it instead of arguing about it

Take one product, put your real numbers into the Etsy fee calculator or the Poshmark fee calculator, and compare the two scenarios directly. Both show net profit and a break-even price, so you can see exactly how much room you have before the change starts costing you money.

Then change one product, not the whole shop. A single listing gives you two weeks of data without risking your margin everywhere at once.