What shipping price options does Etsy give sellers?
Three, set once per shipping profile in Shop Manager: free (the buyer is charged nothing for shipping), flat rate (one fixed price you type in), and calculated (Etsy prices each order from your origin, the buyer's destination, and the item's size and weight). Every listing attached to a profile inherits whichever one you picked for it.
Does a flat rate ever match the real cost?
Only at one distance. On our 2026-08-25 quote, the same 1 lb candle in the same box ran $9.05 to Hartford, $10.29 to Denver and $11.12 to Portland on USPS Ground Advantage. A flat rate set anywhere in that range overcharges the near buyer, undercharges the far one, or both.
Is calculated shipping just the label cost passed through?
It tracks the packed parcel Etsy thinks you are sending, not the label price at the moment of purchase. Our page on Etsy calculated shipping shows where that estimate and the eventual label can drift apart, mainly on the box size entered.
Which option should a new shop pick?
Calculated, if the catalog spans more than one box size or the buyer base is spread across the country. Flat rate suits a shop where every item ships in one box to one general weight. Free shipping is a pricing decision first and a shipping decision second, covered on our Etsy free shipping page.