free plus shipping shopify what if order two

does free plus shipping still work in,e-commerce in 2021.,today we're going to find out,in this video we're going to go through,a case study in which we use a free plus,shipping model,right here in january 2021 against its,opposite counterpart which is a,cost of the product equal to the,shipping on a free plus shipping funnel,but then offer free shipping which one,works we're going to cover that in,today's video we're also going to go,through exactly what we did how we,picked the product we're going to talk,about the metrics that we used,what approach we took all that's going,to be dissected even our facebook ad,everything we're going to go through,that today in this video hopefully,you're going to be able to learn how to,potentially apply this to your own,ecommerce brand or if you're just,getting started in dropshipping or print,on demand you can learn how to apply,those principles,in your business to catapult your 2021,with the bank,what would also be a bang would be if,you hit the like button and the,subscribe button,because that'd be super awesome it helps,get this to more people who we can help,in their ecommerce brands for 2021.,let's dive in,before we get to the split test results,and how we did this and all that that,kind of thing i want to talk about,exactly what we're talking about what is,free plus shipping,free shipping is a strategy used in,e-commerce in which you offer a product,for free,but then on the backend you charge a,customer shipping,the catch is when they check out that's,when they know there's a shipping cost,most of the time people are used to free,shipping or various low cost of shipping,rates but with this model they see an,item as free,all the way up until the checkout and,that's when they're hit with the,shipping cost,usually the shipping cost is much higher,with a free plus shipping funnel than it,would be,a normal funnel it's not uncommon to see,a shipping cost in a free plus shipping,model,695 995 1495 and,some of the ridiculous ones we see at,about 19.95,yes that's really crazy let me give you,an example let's say you have a fishing,bait and you want to run facebook ads,for your new fishing brand,offering a free bait that you found on,aliexpress for two dollars,and let's say with shipping it's 295 or,something to ship the product from,aliexpress using e-packet to your,customer united states,takes about 14 to 21 days to arrive no,big deal so what you do is your strategy,is you offer free plus shipping you say,get your free frog gig just cover,shipping so they click on the facebook,ad because they're super excited to get,this fishing,lure and they add it to their cart they,get the checkout and at checkout you hit,them with,just cover shipping which is 9.95 that's,essentially how free plus shipping works,so why did free plus shipping become a,huge thing well it comes down to,psychology one of the best books you can,read on psychology even for your,marketing and for your business is,a book written by robert cieldini called,influence in that book he offers,six guiding principles of influence one,of those principles is the rule of,commitment the idea is when someone,makes a commitment no matter how small,the commitment is,each additional small commitment becomes,easier and easier with respect to that,particular thing that they're making,commitment on,so let's say for example take that for,e-commerce when someone clicks on your,ad that's,that's a commitment that's a small,commitment when they add an item to,their cart that's a small commitment,when they initiate checkout that's a,small commitment,when they do these various things,they're small commitments so by the time,they get to the checkout by the time,they get to the shipping cost they've,made a number of small commitments,so many so that they're willing to just,go ahead and finish the checkout that's,where the premise of free plus shipping,comes from,now free plus shipping has been around,for years it was super popular back in,2016 2017,everybody used it a lot of people used,it for facebook ads it drove a lot of,traffic there were many,seven-figure businesses generated just,from a free plus shipping model but,nowadays many people believe free plus,shipping is dead they believe free plus,shipping no longer applies they in fact,ridicule the idea some of the most,well-known marketers of our time,criticize the concept because they don't,believe it's effective any longer,instead other people argue that you,should do the opposite which is instead,of doing a free product,plus shipping you offer a product for a,cost,equal to the shipping cost on your free,plus shipping funnel and then offer free,free shipping so let's use our frog gig,or fishing lure gig,example let's say you have a frog gig,instead of saying free frog gig,just cover shipping what they'll do is,say frog gig only seven dollars,free shipping and most people believe,that could work because why not,at the end of the day the customer's,paying the same price there's no,different to the customer whether it's,free frog lure plus seven dollar,shipping or seven dollar frog lure free,shipping,see the difference there's not really,one except for psychology so what's the,psychological reason people want this,well really haven't found one just quite,yet maybe building trust,maybe consistency i'm not really sure,there's really not actually not a,psychological principle that really,applies here,so now the split test now that we've,covered what free plus shipping is what,its counterpart is,why they happen the way they do let's,dive into our case study today and go,through exactly what we did,at the outset about our brand so at the,outset i like to say that our brand,is everything is done right here in the,united states it's a print-on-demand,business,it's a custom e-commerce brand people,can put their own custom twists to these,different products that we have,it's uh it's a fairly new brand i think,maybe we've only done about ten thousand,dollars in total sales,up to this point total margins for the,product are about 70 to 75 percent,i love working with brands that are at,least 60 to 65 because that means,you can pay more to acquire those,customers okay so let's dive into the,case study so,what i'm going to go through is how we,pick the product i'm going to go through,our offer,i'm going to go through the facebook ads,the landing page post purchase upsells,which we did use want to go through the,kpis and then we're going to show the,results all right,so product selection picking the product,was fairly simple for us we only sell,about,three to four products anyway and so for,us when a free plus shipping is involved,and you're shipping it yourself not,through a drop ship from china but,you're actually shipping your own,product from the united states,it's important to have a product that is,lightweight so the shipping cost is not,too high you want to keep your shipping,costs at that minimum,required by usps or other carriers for,tracking which usually is,used to be 265 i think now it's 290 or,even close to three dollars,for shipping so you want to make sure it,fits within that parameter the offer,that we did,was very simple uh first we tested the,cost of a product plus free shipping and,in that case we charged seven dollars,for the item,there was no other cost involved so,that's what they saw on the free plus,shipping,we offered the product for free we had,the price set at 697,for shipping so roughly the same thing i,mean this three cents really matter,maybe to dave ramsey but not really the,customers here,so facebook ads so our facebook ads were,really simple all we did,was literally say on the cost with free,shipping hey,get the xyz product for seven dollars,only with free shipping that's literally,what the facebook ad said it was a,picture of the product and then,below that in the ad copy we let them,know they could customize their product,on the free plus shipping funnel our,facebook ad literally just said get xyz,product,for free just cover shipping that's it,and then below that we talked about how,they could customize their product as,well,one of the most important things you can,do with any e-commerce business when,you're selling a single product or,you're wanting to focus on a single,product,is offer a landing page a custom landing,page i'm not against a shopify product,page,i'm not against a shopify collection,page i'm not against the shopify home,page i am,for higher conversions and if you want a,highly converting funnel the most,effective thing you can do,is create a custom landing page on your,shopify store if you're using shopify,there are plenty of apps out there,pagefly is one of them that you can use,to customize your landing page the,general flow of a landing page you're,going to want the top to be the offer,free xyz product and then small right,below that you're going to want to say,just cover shipping then you're going to,get into the benefits of the product,image of the product,testimonials below that you know some,credibility trust things like,as seen on or testimonials and then more,detail about the product below that,that's a standard landing page we use,that for both tests,post purchase upsell what we did was on,once they purchased an item,we offered a post purchase up so we,offer more of the same at a discount so,let's say you're selling frog,lures or whatever fishing lures at the,post purchase upsell would be more of,the same instead of them buying one frog,lure they would get,two three four five at discounts each,time that's what we did the reason we,did this is because we wanted to,test the take rate and we also wanted to,test um,we wanted to try to get our average,order value higher if you have a seven,dollar item,you know your average order value can be,higher than that if you do offer post,purchase upsells our kpi was very simple,it was literally one kpi,cost per purchase what's our cost per,purchase gonna be can it be as close to,break even as possible,because if we can get 70 60 70 100,orders a day from this or more,that's an additional 2 000 plus people,per month in our ecosystem,and because we're not drop shipping from,china we have a look like a high quality,brand from the united states,we expect a 20 to 25 percent repeat,customer rate if we had 2,000 new customers each month customers,from our funnels and 20,of them came back as a repeat buyers,which is standard in the industry one of,my brands right now is about a 28,repeat rate so once we implement our,email flows and whatnot we have 20,repeat by that's 400 buyers per month,coming,back just from our funnel that we,hopefully broke even on and if each,average order value of that,is uh 50 then you're looking at an,additional 20 000,a month in revenue at a 70 margin what,that means is,if we can break even in our front end,funnels get a 20,repeat purchase rate at a 70 margin at,the 2 000,new customers a month example we would,be profiting an additional 14 000,a month off of a break-even funnel on,the front end you see why this is so,important,so let's take a look at the results the,results were very clear,the free plus shipping model worked in,major ways,the cost per purchase on a on the cost,with free shipping was around ten,dollars a purchase,now if you're offering the product for,seven dollars unless your average order,value was super high which ours was not,because,the upsells were much harder with that,with seven dollars it doesn't really,break even that much,cost per purchase was about ten dollars,the cost per added cart was about three,dollars,which means we're capturing emails at,about three dollars a pop let's compare,that to the,free plus shipping model free plus,shipping model the cost for purchase was,around four and a half to five dollars,and the add to cart rate we got add to,carts for,less than a dollar 82 cents i think a,piece the best part is we're now able to,remarket to those people,much cheaper the cool thing is is not,only were we breaking even on the front,end roughly breaking even which is,spectacular but we're also getting a ton,of people to submit their emails for,adding to the cart,allowing us to build our email list so,we can retarget to them in the future,these are people who they didn't,purchase but they added to the cart so,we got their emails why is it important,to remarket to them because we know they,love the product we know they were,interested they went so far as to upload,their own image,for customization so now it's just a,matter of convincing them to go ahead,and give us a try we know they want the,product and we've got 82 cents a piece,for that that's essentially paying 82,cents a lead at profitability on the,front end with a free plus shipping,model,that's our case study those are the,results it's very clear,that free plus shipping still works in,e-commerce brands in 2021,i encourage you if you're looking for a,way to get more emails,more leads more people in your ecosystem,in 2021 to consider,to explore the possibility of a free,plus shipping model,it's not for every product and it's not,for every brand but it could be for your,brand,until next time onward and upwards,ecommerce brand builders,you

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