Etsy doesn't care about shipping turnaround. Some items (quilts or furniture, for example, can take a month or longer to make). They only get involved in a dispute if the time frame the seller has included in the listing is not met and the buyer files a claim with Etsy.
I think processing time varies dramatically between "decorative" (not loaf) M&P and Cold or Hot Process soap. For my decorative M&P soaps I don't keep any inventory. For my loaf M&P soaps I make eight bars at a time, so I may have limited inventory on those. My decorative soaps are made when an order is placed and paid for. On large custom orders (I just did 420 M&P hearts for an engagement party), my lead time was 30 days. And, for that order (buyer was in California), I sent samples first so they could select exact colors they wanted. I have found that especially for weddings and showers, sending already made color samples heads off lots of issues since computer monitors display colors so differently. And, when someone says, "shades of peach" color, it's hard to know what they really mean (that was my engagement party color).
I use the 3-5 business days choice for processing (it's one of the Etsy choices in a listing). That way I always have a weekend if I need it. If for any reason the order will be delayed (like now, because of the extreme heat), I am in constant touch with my buyers, making sure their order wasn't a rush or needed by a specific day. Most times, and I say it in my automatic note that goes to all buyers, soap will ship sooner than the listing says and they will always get a shipping confirmation with tracking number when it does.
It's all about customer service, in my opinion.
Connie
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