How to offer free shipping?

For products we sell for about $4 (Amazon Handmade, managed via the same Seller app), Amazon is providing paid shipping for buyers for about $5 which basically doubles the purchase price for our customers.

However, I see other sellers of similar products offering free shipping. Is there another option for tracked shipping these folks are using that I don’t see? Is it like a 3rd party type of integration where the shipping cost gets so low it can be absorbed in the $4 and still be profitable?

Kind of frustrating and forcing us to contemplate bundling and other methods that might address this but I am concerned that customers will pass us in favor for the cheaper products.