dropshipping on shopify how to calculate shipping cost

hey guys what's going on Jim's here back,with econ insiders and hopefully guys,enjoyed that little clip off the new car,honestly if you watched my channel or,follow me on Instagram maybe you,actually seen the car if you haven't go,check out at GM's bcu we actually did a,couple of days ago go and film a ton of,content we're gonna put together like a,little launch video for the actual car,and show you guys what's all about it's,absolutely in CNM it's crazy that I've,been able to go out there and get these,things and drive these cars like I had,an older audio yet before which was fun,but this thing is just another animal,and I'm pretty excited to show you guys,in a ton of you guys are car fans but,let's jump into today's video let me,know what you think down below let me,know if you've checked the car on,Instagram what you think about it but,today we're gonna be talking about how,you can go out there and set up your,shipping rates for the best possible,outcome right the best possible,conversion rate it's something that you,know maybe some people don't actually,think about or a lot of people just,overlook it and it could actually be the,reason or the actual problem that's,stopping you from getting seals shipping,rents over the past couple of years when,I've you know I've sold well over three,million products products you know,ranging in price from free plus shipping,where we're charging $11 shipping to,products that are a hundred dollars one,hundred and fifty dollars where maybe we,don't talk charge shipping or we can get,away with charging shipping a little bit,higher and there's a couple of variables,you want to take into consideration when,you're going out there and setting your,shipping rates so what I want to talk,about first is kind of hard to think,about shipping rates and the kind of,psychology behind it and why it's,important to maybe change it for certain,products so what we actually do in hire,I run my stores and I want to be fully,transparent and let you guys kind of run,with this I think it's the easiest way,to get started because there's no,friction at all if you're getting,started you're trying to sell product,you're trying to find something,not works generally if you're selling a,product that is under $50 I would go,with free shipping on that margin right,if you need the extra four or five,dollars margin on your product just go,ahead and add that into the pricier,product it's going to convert better if,you don't have shipping price the less,friction between the customer hitting,your website and entering their card,details the better and if you've got,shipping rates you'll notice a bigger,drop off from initiating that checkout,to purchase then you would if you don't,have a shipping mint so when we're,testing when we're testing new products,we go ahead and we just have free,shipping because we want to see does the,product work right and we don't want,that any other friction in there once we,find something that's working once we,find that had this products making seals,that's doing well then we can go out,there and test shipping rates you know,our kind of first mark is three dollars,the next is five dollars and unlike a,full price product I've never charged,any more than five dollars for shipping,however on free plus shipping stuff our,price is 1095 so when you're going out,there and thinking about this there's a,couple of reasons why we might actually,charge shipping the next is obviously,the different ways you can do this in,different ways you can structure it a,lot of people go out there and charge,shipping for that lower end right for,that zero to $50 they'll have a banner,on their website that says you know free,shipping over $50 and this can be a very,good way to boost your average order,value however I would only advise doing,this when you have a product that you're,selling that can actually you know maybe,be sold in multiples and it makes sense,for people to add more to their cart if,you're selling a product where the,purchaser the customer is likely only to,be going out there and buying one unit,then I wouldn't advise having that as,your shipping method because likely,they're not going to add another to cart,they'll go to the shipping page and my,action,just bouncing away and never coming back,so in that situation I would only do,that and again I would only do it after,testing the product has worked with a,zero shipping and I just think is a,broad overview altogether I would say I,have free shipping you know totally on,your store until you find a wedding,product once you find that wedding,product I would say the first thing the,kind of test is probably that right over,there certain amount so if your product,costs $40 what I would do is probably,have above $50 free shipping today,you're gonna find many people look,around your website add something on,it's nice if you can actually have an,add-on on your product page so on your,product page if you have it right there,and you have this product at $40 and,you're gonna make an add-on item that,works perfectly with it for an extra $15,then it makes sense that people are,gonna add that to their cart see of the,five dollars in shipping and actually,get an extra item for $55 so that's what,it really makes sense to go ahead and,you know maybe out of shipping right in,there and have that bar up at the top,another time you can really get away,with you know pricing and adding and,shipping is when you're selling like a,high-priced item that goes ahead and you,know it seems heavy right so we sell,canvases on our stores when we sell them,from $50 all the way up to about 150,dollars with our canvases we can get,away with shipping right it's a free em,product and customers are expecting the,paid shipping right and we still only,charge $5 for it because we get shipping,fairly cheaply from our supplier um but,you know the customers expecting the,path I like Navarro to canvas online I,probably expect the poet am 15 maybe,even $20 for shipping to my house,because it's a big item right it stacks,up a lot of room they're quite heavy so,that it makes logical sense you've got,to think about the psychology of the,customer logically I'm expecting the,past shipping on that so when we,actually have a $5 shipping rate which,is extremely cheap and we've promised,our shipping into the price anyway but,the $5 add on it doesn't really turn,away at customers because it's a hundred,and fifty dollar items so an extra $5,doesn't really affect it even at $50 an,extra five it's only 10% of the price,and customers don't really get turned or,wow it up so that's another time,you're selling Ivan said above $50 item,and you're charging $3 for shipping it's,probably not going to affect your,charging $5 for shipping probably not,really going to affect your conversion,rate again go ahead and test it you,always want to be testing this stuff but,above $50 you kind of get to that point,where the shipping becomes a small,portion of the actual order value for,the customer where it doesn't have as,big of a negative effect however if,you're selling an item and the me an,item on your store the Miam product in,your store is $10 maybe it's $15 even,$20 and you're charging $5 shipping I,can extremely affect your conversion,rate again you want to test it and see,how much it is maybe it actually will,work out more beneficial for you if it's,maybe like a heavy item that cost $10,and people can understand that however,if you're selling like a pair of,sunglasses where it's light it's easy to,ship and you're going ahead and charging,five dollars but the product costs 10,people are gonna get the check out and,be like that's 50% of this action actual,order value and that will turn the,customer away it's actually just much,better to charge $15 for them glasses,for them sunglasses up front and people,won't be turned away a check up because,there's no friction there I'm 15 dollars,for some glasses seems reasonable,however $5 shipping on a $10 item it,kind of makes people think twice about,buying from you and that can be huge in,your conversion rates so if you're going,out there and kind of just to sum up the,video altogether,go out there and test this right if,you're testing products if you don't,have a winner right now you don't have a,product that's doing well I would go,with free shipping on your store because,that could be one of the issues that,we've had products where it sells,extremely well with no shipping without,shipping to the totally ruins our,metrics and makes us unprofitable,however when you just tweak a few things,it can become extremely profitable so I,would go ahead and just to sum up again,is zero to $50 I would probably always,kind of have free shipping on that or,once you find a winner you know it works,then go out there test the average order,bump by having free shipping above XYZ,amant depending on your product probably,do it about 20% higher than your,average order value is currently now I'm,get people to add more to the cart but,again you know make sure you test it at,first to make sure that it actually,works with no shipping and then the next,would be when you're charging or you're,having like high-priced products that,are you know perceived to be hard to,ship or cost a lot to ship then you can,charge shipping again you can charge a,little bit more on the canvases we could,probably charge ten dollars but we like,to have it as five dollars kind of a,nice surprise for the customer when they,thought that we're going to be paying a,lot more so a lot to think about in this,stuff that probably a lot of people,don't think about when you're going out,there and starting their stores and it,really does hurt them so hopefully that,guys that helps you go ahead and drop a,comment down below let me know what you,charge for shipping and what you,actually think about it what you find in,your stores I know this definitely,varies from nation to nation product to,product and that's why you always want,to be testing right no matter what no,matter what I send these videos no,matter what anyone else Ted tells you go,ahead and pass it in your niche on your,products and split test it because it,changes so much I've seen this I run,multiple stores multiple nations,multiple price points and it affects you,know them different stores different,products so much so I highly recommend,going out there testing again when,you're just starting I would recommend,adding that shipping price into the,product price and going ahead and doing,it that way it'll make it much much,easier to go ahead a drop a like on the,video hit subscribe and you know if you,haven't already go ahead and check out,my free training down below where I,teach you the three steps to building my,over three million dollars in seals in,the past two and a half years or so I,quit my job I was at a corporate job,nine to five and really didn't like it I,started drop shipping and I went to,haven't gonna show you in that training,it's about two hours long there is you,know a course offered at the end of it,which you know cost you know substantial,amount of money to get in there I don't,want to be transparent about that that's,one of my biggest things is I totally,open with you guys so there is of course,the end up there's a ton of value in the,video but if you're just getting started,with drop shipping if you're just,getting started with e-commerce,I would highly recommend checking out on,it the best place to start and give you,you know the best kind of broad overview,and kind of hard to start the right way,without getting lost in the weeds is so,much out there that you know can send,you down the wrong path so hopefully you,guys enjoy that I'll see you guys in the,next one let me know if you're excited,to see the car video I'm super excited,to see how it came on some of the clips,are in seeing already it was a fun day,of shooting we have a ton of issues,actually with the actual car as well,I'll explain that in another video so if,you want to see some car content let me,know I'll see you guys

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