I offered free shipping quite a bit on little stuff that shipped first class, and adjusted my price accordingly if I had to.
Free shipping basically brought up your DSR scores if you got dinged on shipping a few times by buyers on the other end of the coast that can't understand why shipping costs so much, if you ship for free it's an automatic 5 stars on shipping.
Automatic 5 stars for checking same-day or one day handling and having the package meet delivery time.
Automatic 5 stars for communication as long as you offer the one day handling and do not send any email to the buyer after the sale is completed.
DSR's supposedly don't affect you like they did/could since they changed the rules in Feb, but they're still there, your buyers still see them, so every now and then I do some free shipping.
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