When Etsy officially launched in 2005, its primary focus was independent crafters selling unique handmade goods. Today, you’ll find sellers specializing in antiques, collectibles, and printables.
In 2021, Etsy had at least 7.5 million active sellers and about 96 million active buyers. These impressive figures are due to the fact that Etsy is a niche site that allows sellers to set up shop quickly and easily reach ideal customers.
The only caveat with Etsy is that it doesn’t provide its own in-house fulfillment service. This means you have to handle Etsy fulfillment on your own, utilize FBA (fulfillment by Amazon), or outsource fulfillment to a 3PL (third-party logistics) provider.
This article will take a deep dive into all three options for Etsy fulfillment to help you make the best choice for your Etsy shop.
But first, let’s explore some interesting online shipping statistics you need to keep in mind when considering the best fulfillment option for your Etsy business.
- 56% of online shoppers aged between 18-34 years (Etsy’s primary audience) expect same-day delivery
- 61% are even willing to pay a premium for same-day shipping
- Free shipping persuades 80% of customers to shop online
- 69% of customers have cited high shipping costs as the reason for canceling an order
- 38% of shoppers will abandon their cart if delivery takes more than one week
- 96% of shoppers expect shipping issues to be resolved during transit
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How Does Fulfillment Work on Etsy?
Even though Etsy doesn’t fulfillment services such as order picking, packing, inventory storage, or shipping, it provides helpful services to help sellers manage fulfillment on their own. These services are in Etsy’s shipping policy and they include
- Using Etsy shipping and return postage labels from USPS, FedEx, Canada Post, Royal Mail, and Australia Post
- Delivery insurance that depends on your location and shipping carrier
- Setting shipping profiles for similar product listings
- Using the smart pricing tool
DIY Etsy Fulfillment
Let’s look at how you can handle shipping on your own. The first step is to choose your carrier. The shipping carrier will have some form of optional insurance.
The next step is to generate shipping labels where you can opt to buy a label for USPS, FedEx, or Canada Post. print the label and mark it as dispatched. This helps you save up to 30% on postage.
To buy an Etsy shipping label:
- Go to your shop dashboard and select Orders
- Select the order you want to send and click “Print Postage Label”
- Choose your carrier (USPS, FedEx, Canada Post, etc)
- Input your delivery method, type of package, and dimensions
- Download your label and fix it to the package
Once you know the carrier you’d like to use, create shipping profiles. From your dashboard, go to Settings and click the Shipping Settings tab. You’ll find pre-set shipping choices to assign. You have the option of setting specific instructions for domestic and international shipping.
Etsy calculates your shipping rates automatically and you can opt to go with what it recommends you charge or set up your own fixed rates when you set up shipping profiles.
Pros of DIY Etsy fulfillment
- Etsy sellers can create shipping profiles to streamline adding shipping details to items in your shop
- Ability to set up delivery policies and rules of return for your products
- Buying shipping labels helps sellers get shipping discounts and request refunds on unused labels
- You can provide a free delivery guarantee for orders above $35 in the U.S and Canada
Cons of DIY Etsy fulfillment
- Etsy has limited customer service
- Handling fulfillment on your own is expensive. You incur warehousing costs, insurance, and other hidden fulfillment costs
Fulfillment by Amazon
If you opt to use Amazon FBA for Etsy fulfillment, you’ll have to create a fulfilled by Amazon order for the items your customer ordered. Amazon ships the item and you’ll include the tracking information given by Amazon to your Etsy order.
Here are the steps you need to take to make a fulfillment order:
- Go to your Manage Inventory and select items ordered by the customer
- Click on Create Fulfillment Order
It’s worth noting that you’ll be charged FBA fees. However, you’ll not be charged the 15% commission fee because the sale came from Etsy and not their marketplace. You’ll cover standard Etsy fees.
Pros of FBA on Etsy orders
- Amazon takes care of customer support from handling complaints and returns
- Ease of your shipping process from picking and packing
- Amazon will reimburse you if a product gets lost or damaged in transit
Cons of FBA on Etsy orders
- Customers won’t be able to use their prime membership
- You’ll face branding limitations because your order will arrive in Amazon boxes
- You won’t be able to customize the fulfillment or shopping experience with FBA
Outsourcing Etsy Fulfillment to a 3PL
Some of the services you can expect from a 3PL include:
Warehouse storage
3PLs usually have a network of warehouses to store inventory and facilitate timely shipping to customers. When your products are closer to the location of your customers, the lower the shipping costs get.
Etsy sellers should consider partnering with a 3PL provider to not only avoid renting out space to handle fulfillment but also reduce their shipping costs.
Picking and packing services
When you outsource fulfillment to a third-party logistics provider, warehouse workers handle the picking and packing for you. Most 3PLs offer the option that allows sellers to customize branding and control how their products are packaged.
Affordable shipping
3PLs are able to provide affordable shipping to sellers because they’re better able to negotiate competitive shipping rates by leveraging the shipping volume they handle.
Once they pass on these rates, you’ll be able to provide free shipping to your customers and boost online sales as we discussed in the statistics earlier.
Automation
Most 3PLs have software programs that seamlessly integrate with Etsy to streamline the entire fulfillment process. This allows sellers to track inventory levels, customer orders, and real-time shipping information.
Once an order is placed in your store, that information is promptly sent to the fulfillment center with your specifications. This step helps to facilitate faster shipping and delivery to your customers.
Pros of using a 3PL for Etsy fulfillment
- It’s a cost-effective option compared to managing fulfillment on your own
- Inventory management and real-time order tracking
- Customized packaging to own your branding experience
- Global warehousing helps sellers test new markets abroad and increase their reach
Cons of using a 3PL for Etsy fulfillment
- External factors such as over-regulation, tariffs, and weather changes usually affect costs
How NextSmartShip Can Help You with Etsy Fulfillment
NextSmartShip offers Etsy sellers omnichannel fulfillment that allows you to scale your business and sell across multiple sales channels.
You can also leverage NextSmartShip’s global warehousing to store your products at locations closest to your orders to provide faster shipping and reduce costs. Furthermore, it features an algorithm that recommends the fastest or most economical route based on the customer’s location or product attributes.
Are you ready to take the guesswork out of your Etsy fulfillment? Reach out to us today and learn more about how we can help you simplify your Etsy logistics.
