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So at this point of the course, I want to take things up a notch because we now have our Shopify plan
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in place.
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So these things will start to make much more sense.
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And what I'm talking about at this lecture are the three shipping models.
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We're going to start selling products from our site, and of course they need to be shipped from the
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supplier direct to the customer.
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And there are three ways that we can do it, not necessarily three shipping methods, but three ways
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that we can apply the shipping costs at the checkout.
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So in this lecture, I'm going to talk about these three shipping models and describe the one that I
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use and why.
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And before I get going, I will say this is a pretty hotly contested area.
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Okay?
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People do have different opinions on this.
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But at the same time, I will say I've got a massive amount of experience in this area.
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I've pretty much tested everything and I feel I know what works best, particularly with this type of
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Dropshipping model that we're building out.
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So let's have a look at the three possibilities.
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Number one, we have free shipping.
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I'm sure you've seen this is very, very popular.
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Free shipping offered on all deliveries or all deliveries over a certain amount, whatever it might
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be.
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But we see free shipping all over the place and this is a good model.
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I have tested this one extensively and if you want to use free shipping, then that's great.
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It does work well.
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So if we're selling a product for $20, then that's it.
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We're not adding on any shipping and we will take the hit with the shipping ourselves because we do
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have to pay the supplier some shipping.
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You will see that later on.
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But that's the problem for me is I'm taking a little bit of a hit.
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I have to pay for the shipping and I don't like that so much because it eats into my margins and therefore
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the overall profit of my business.
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So the model that I like the best and the one that I will use going forward during the rest of this
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course and the one that I would advise you to use as well, but of course it's entirely up to you is
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what I call realistic shipping costs $2.95.
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And the key word here is realistic.
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Sometimes I see people adding on silly shipping costs at the checkout, and that's really not a good
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thing to do because the checkout is a critical point in the whole buying process.
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And if your buyer considers your shipping cost to be unrealistic, they're very likely to abandon the
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checkout at that point and possibly never come back.
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But realistic shipping costs of 2.95 in this case on, say, a $20 item is perfectly acceptable and
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it works extremely well.
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And it means therefore that effectively I'm passing on the shipping cost to my customer or I'm not paying
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them myself.
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Whichever way you like to look at it, the end result is the same because I've increased my profit considerably.
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So number two for me is the best.
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Now number three is my least favorite.
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And I think in fact really this is a bit of a dying model.
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It was very popular a few years ago where we had the concept of free just add shipping or just pay shipping.
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Again, you used to see this all over the place.
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You'd see an item could be anything.
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Let's just take the jewelry necklace, for example, that we've been looking at and it would say free
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plus shipping.
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So you'd click on it, you'd add it into the checkout, and then when you got to the shipping, you
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would discover the shipping was $20.
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Okay?
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Because of course, the vendors got to make money somewhere.
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And yes, it brings a lot of people to your site because everyone is attracted by free, but you're
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going to get an awful lot of abandonments at the checkout and an awful lot of people never coming back
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because it just leaves a kind of sour taste in the mouth.
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So to sum up, number two is my favorite is the one that I use, the one that works best for me.
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Number one is a very close second, if you like.
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Maybe I should put those the other way around.
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But number one, free shipping is also a very good model, but certainly avoid number three free with
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just ads.
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Shipping is really not something I would encourage you to do.
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