All language subtitles for 37 - The 3 Shipping Models English

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These are the user uploaded subtitles that are being translated: 1 00:00:00,150 --> 00:00:04,500 ‫So at this point of the course, I want to take things up a notch because we now have our Shopify plan 2 00:00:04,500 --> 00:00:05,100 ‫in place. 3 00:00:05,100 --> 00:00:07,680 ‫So these things will start to make much more sense. 4 00:00:07,680 --> 00:00:11,340 ‫And what I'm talking about at this lecture are the three shipping models. 5 00:00:11,340 --> 00:00:15,510 ‫We're going to start selling products from our site, and of course they need to be shipped from the 6 00:00:15,510 --> 00:00:17,760 ‫supplier direct to the customer. 7 00:00:17,940 --> 00:00:23,340 ‫And there are three ways that we can do it, not necessarily three shipping methods, but three ways 8 00:00:23,340 --> 00:00:27,480 ‫that we can apply the shipping costs at the checkout. 9 00:00:27,480 --> 00:00:31,620 ‫So in this lecture, I'm going to talk about these three shipping models and describe the one that I 10 00:00:31,620 --> 00:00:33,120 ‫use and why. 11 00:00:33,300 --> 00:00:37,800 ‫And before I get going, I will say this is a pretty hotly contested area. 12 00:00:37,800 --> 00:00:38,000 ‫Okay? 13 00:00:38,100 --> 00:00:40,260 ‫People do have different opinions on this. 14 00:00:40,260 --> 00:00:44,130 ‫But at the same time, I will say I've got a massive amount of experience in this area. 15 00:00:44,130 --> 00:00:49,890 ‫I've pretty much tested everything and I feel I know what works best, particularly with this type of 16 00:00:49,890 --> 00:00:51,930 ‫Dropshipping model that we're building out. 17 00:00:52,080 --> 00:00:54,080 ‫So let's have a look at the three possibilities. 18 00:00:54,090 --> 00:00:56,640 ‫Number one, we have free shipping. 19 00:00:56,640 --> 00:00:59,340 ‫I'm sure you've seen this is very, very popular. 20 00:00:59,940 --> 00:01:04,620 ‫Free shipping offered on all deliveries or all deliveries over a certain amount, whatever it might 21 00:01:04,620 --> 00:01:04,800 ‫be. 22 00:01:04,800 --> 00:01:09,570 ‫But we see free shipping all over the place and this is a good model. 23 00:01:09,570 --> 00:01:14,280 ‫I have tested this one extensively and if you want to use free shipping, then that's great. 24 00:01:14,280 --> 00:01:15,810 ‫It does work well. 25 00:01:16,110 --> 00:01:19,170 ‫So if we're selling a product for $20, then that's it. 26 00:01:19,170 --> 00:01:23,880 ‫We're not adding on any shipping and we will take the hit with the shipping ourselves because we do 27 00:01:23,880 --> 00:01:25,770 ‫have to pay the supplier some shipping. 28 00:01:25,770 --> 00:01:27,300 ‫You will see that later on. 29 00:01:27,390 --> 00:01:30,930 ‫But that's the problem for me is I'm taking a little bit of a hit. 30 00:01:30,930 --> 00:01:36,690 ‫I have to pay for the shipping and I don't like that so much because it eats into my margins and therefore 31 00:01:36,690 --> 00:01:38,730 ‫the overall profit of my business. 32 00:01:39,120 --> 00:01:44,190 ‫So the model that I like the best and the one that I will use going forward during the rest of this 33 00:01:44,190 --> 00:01:49,230 ‫course and the one that I would advise you to use as well, but of course it's entirely up to you is 34 00:01:49,230 --> 00:01:53,850 ‫what I call realistic shipping costs $2.95. 35 00:01:53,850 --> 00:01:55,860 ‫And the key word here is realistic. 36 00:01:55,860 --> 00:02:02,010 ‫Sometimes I see people adding on silly shipping costs at the checkout, and that's really not a good 37 00:02:02,010 --> 00:02:07,140 ‫thing to do because the checkout is a critical point in the whole buying process. 38 00:02:07,140 --> 00:02:12,810 ‫And if your buyer considers your shipping cost to be unrealistic, they're very likely to abandon the 39 00:02:12,810 --> 00:02:15,510 ‫checkout at that point and possibly never come back. 40 00:02:15,510 --> 00:02:23,040 ‫But realistic shipping costs of 2.95 in this case on, say, a $20 item is perfectly acceptable and 41 00:02:23,040 --> 00:02:24,090 ‫it works extremely well. 42 00:02:24,090 --> 00:02:29,910 ‫And it means therefore that effectively I'm passing on the shipping cost to my customer or I'm not paying 43 00:02:29,910 --> 00:02:30,750 ‫them myself. 44 00:02:30,750 --> 00:02:37,320 ‫Whichever way you like to look at it, the end result is the same because I've increased my profit considerably. 45 00:02:37,320 --> 00:02:39,450 ‫So number two for me is the best. 46 00:02:39,960 --> 00:02:43,740 ‫Now number three is my least favorite. 47 00:02:43,740 --> 00:02:46,350 ‫And I think in fact really this is a bit of a dying model. 48 00:02:46,350 --> 00:02:52,620 ‫It was very popular a few years ago where we had the concept of free just add shipping or just pay shipping. 49 00:02:53,100 --> 00:02:54,720 ‫Again, you used to see this all over the place. 50 00:02:54,720 --> 00:02:56,700 ‫You'd see an item could be anything. 51 00:02:56,700 --> 00:03:03,810 ‫Let's just take the jewelry necklace, for example, that we've been looking at and it would say free 52 00:03:03,810 --> 00:03:04,590 ‫plus shipping. 53 00:03:04,590 --> 00:03:07,920 ‫So you'd click on it, you'd add it into the checkout, and then when you got to the shipping, you 54 00:03:07,920 --> 00:03:10,800 ‫would discover the shipping was $20. 55 00:03:10,830 --> 00:03:11,350 ‫Okay? 56 00:03:11,370 --> 00:03:13,950 ‫Because of course, the vendors got to make money somewhere. 57 00:03:14,520 --> 00:03:19,740 ‫And yes, it brings a lot of people to your site because everyone is attracted by free, but you're 58 00:03:19,740 --> 00:03:25,140 ‫going to get an awful lot of abandonments at the checkout and an awful lot of people never coming back 59 00:03:25,140 --> 00:03:27,810 ‫because it just leaves a kind of sour taste in the mouth. 60 00:03:28,260 --> 00:03:34,050 ‫So to sum up, number two is my favorite is the one that I use, the one that works best for me. 61 00:03:34,290 --> 00:03:37,860 ‫Number one is a very close second, if you like. 62 00:03:37,860 --> 00:03:39,420 ‫Maybe I should put those the other way around. 63 00:03:39,420 --> 00:03:45,900 ‫But number one, free shipping is also a very good model, but certainly avoid number three free with 64 00:03:45,900 --> 00:03:46,350 ‫just ads. 65 00:03:46,350 --> 00:03:49,440 ‫Shipping is really not something I would encourage you to do. 6729

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