eCommerce Lifestyle
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Your Free Gift!

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​Who wouldn't want a free gift?

In today's episode of the podcast, I share with you ways on how you can increase your revenue by offering a free gift.

If you’ve already tried the method I talk about in the podcast episode, then please share your experience with us. And if you have any questions, please ask them in the comment section at the bottom of this page.

What's Covered in This Episode:


How to offer free gifts

  • ​Set an amount for the customers to reach to get the free gift

  • ​Offer a gift that's directly related a product
  • ​Show the free gift on the product page
If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.

Links From This Episode:

This ​podcast is also available in video form. Click ‘Play’ below to start watching. Make sure to subscribe to our YouTube Channel for weekly updates and insights!

Transcript

What's up everybody. Anton Kraly here from eCommerceLifestyle.com. Welcome back to the podcast. If you're new here, just know that this show is designed to help you increase your revenue, automate your operations, and become the authority in your niche. This specific episode is going to help you to increase your revenue, and it's also going to help you to become the authority in your niche, because it helps you stand out from everybody else trying to do the same thing as you. The topic of today's episode was actually brought upon us from a question that was submitted on a recent YouTube Live Stream, that I hosted. This question came from Michael Wooten. Think I'm saying that right. It says, "Any thoughts on including a free gift with certain products, can that still be drop shippable?" I like that term. I've never used it before, I don't think, but I'm going to steal it.

The short answer to this question is, Yes, you can include free gifts and yes, they can be drop shipped. We'll go through a few different ways, but this is actually something that I do teach in depth inside of the Drop Ship Blueprint. If you're listening to this and you're a member, which you should be, just log in at members.dropshiplifestyle.com, and in module five, lesson 5.6, is called, creating bonus offers, where we go deep into how to actually set this up on your store. Again, I'm assuming most listeners are members of Drop Ship Lifestyle. If you're not, what are you waiting for? Go to dropshiplifestyle.com, get signed up and just get the full trainings. First, we should talk about what a bonus gift actually is, and pretty self explanatory.

But if somebody buys a product from you, then they receive a free thing, specifically for this podcast, I'm referring to something physical. A free physical product, and these products can either be related to your niche or they can be completely unrelated. We do this both ways. The first time I actually did this, was probably back in 2009 or 2010. That's crazy, a decade ago, but what happened is, Apple had come out with a new iPod, and I don't know if it was the iPod mini or nano or shuffle, but one of these things that came out where the market was going crazy, everybody wanted one of these and it was right around end of November into beginning December. I had the idea, I think the product was under a hundred bucks, and this store that I put this on, was earning 300, 400, 500, sometimes $1000 plus net profit per sale, selling obviously super expensive products, selling a lot in bulk too.

I thought, okay, we have this hot product that would cost me under a hundred bucks. We have customers that are spending an insane amount of money with us. Why don't I try this promotion for a week? Where if you buy anything on our store above a minimum threshold of sales, you're going to get this free iPod mailed to you. This offer exploded, back then, we didn't have Facebook ads. I don't think I used Facebook ads back then. Advertising was totally different. The way that this was promoted back then, was on our store in what we used to use, hello bar, the notification bar above the top of the store that sticks to the page, put the message there, send an email out to the few emails subscribers we had back then, because was nowhere near as well versed in email marketing back then as I am now, but just had it on the site, right?

All of the traffic coming in, saw this bonus gift, they saw this free gift that they can get if they spent over that minimum threshold. I don't remember what it was back then, maybe 1500, 2000 bucks, maybe even 1000. I have no idea, it was still too long ago, but happened is, sales absolutely exploded. We got an insane amount of extra revenue and profit into our business. All because we said, "Hey, you can get this free little thing from us." Where again, the cost was under a hundred bucks. That was my first experience with bonus offers and realizing this gift idea is something we have to roll with. If you're thinking, "Well, are those drop shippable?" Well, yeah, what we did was, have one of our VAs, just go into apple.com. We created an account, linked up the credit card, and they went in and they ordered them all from the Apple store and put in our customer's addresses.

They were shipped from Apple to the customers. It was a lot of manual work because somebody had to log in and put the information, but it was well worth it. If you think about it, what could it be, five minutes or so per order. In exchange, all these extra sales flowing in through the store. Now, one more cool thing here, which isn't really related to this episode, but something we realized we could do when we were basically Drop Shipping these products is, you can do custom engraving. Again, I don't remember back then, if there was an upcharge for it or not, if there was, it was relatively nothing in comparison to how much money the store makes per sale. But what we did was put our store name on all of the iPods that were shipped out.

Revenue had an absolutely massive month in sales. All of these products were drop-shipped with about again, maybe five minutes of work per order, that one of our team members was doing. Now, all of our customers had their products and they had these iPods that for the lifetime that they use them, probably two, three, four, five years, all we saw, our store name on the back of them. That again, was my first experience, worked out really well. Let me tell you about, I guess, a more recent example, a promotion that just closed, probably should have talked about it on the podcast, but it just closed a couple of weeks ago. It was for the Drop Ship Lifestyle Merch store, where we sell Drop Ship Lifestyle T-shirts, backpacks, I don't have anything around me now, but we have coffee mugs, socks, whole bunch of merch.

The promotion that we ran there was related to the niche. By the way, the store, if you want to see it, it's dslmerch.com. I'll link it up in the description. But the promotion there was, if you spend over $50 store wide, you'll get a free copy of my book, Drop Ship Secrets, mailed to you, and this promotion also absolutely crushed it. Again, this is drop-shipped. The book is printed on demand, when people order, it is shipped straight to them and our costs are relatively low, especially because our historic average order value, because it's a merch store, it sells tee shirts and backpacks. It's typically around 30 bucks by offering this as a free bonus gift for that limited window, we three Xed our average order value, and we also doubled our conversion rate for the period that the promotion ran.

That's another example of a free gift. It's also worth noting that when you're thinking of doing free gifts, they can be product specific or they can be store wide. Those two examples I just gave you were store wide examples. Again, get the free iPod. If you buy anything with an order value above X, the book example, same thing, get the free book with an order value above X. Those make sense when there's some type of limited promotion. Maybe for you, it's Black Friday through Cyber Monday, maybe it's the 4th of July, which I know just passed, but next holiday, right? Do it then, whatever holiday it is, whatever event you want to have, the promotion we just had for the merch store, there was no holiday. We just made our own three-day promotion. You can work it in that way. Now, the product specific ones, the product specific free gifts make sense year round, and they make sense to do on your best sellers.

You might've heard me say this before, if you were a member of Drop Ship Lifestyle, but the 80/20 rule, definitely holds true when it comes to eCommerce and Drop Shipping. If you have 100 skews on your website, a hundred products, there are probably 20 of them that are by far your best sellers, that sell above and above everything else. With those products, that's where you want to start considering, "Can I offer free gifts when people buy these things from me?" Now, with that type of offer, we're typically doing something that's directly related to the product. An example might be, if I sold sofas and I had a $1,500 fabric sofa, whatever, call it Anton sofa model number one, two, three, and it sold great, but I had five competitors and everybody was selling at MAP, so pricing competition is not a thing.

What I might do is say, "Okay, can I find a set of throw pillows that looks perfect with this sofa, right? Maybe two pillows." What's my wholesale cost for them. Okay. Maybe they come from the same supplier. Maybe they come from another one doesn't really matter, but figure out my costs. Let's just say, wholesale is 50 bucks and retail is 150. Well, now, I can put on that product page, that when you buy Anton sofa, one, two, three from us, you're going to get these throw pillows. I can have them superimposed onto the product image, show exactly what they look like, and whenever anybody orders from me, if they come from that same supplier, I can just automatically have them included and pay my 50 bucks to capture that $1,500 sale. Or if it's another supplier, I can just have that order forwarded there as well.

They charge me the 50 bucks and I still got that $1,500 sale over my competitors that weren't doing this. Guys, I hope you found this useful. Again, if you want to see exactly how to do this, how to put it on the product pages, how to actually configure your Shopify store for this, that is included in the Drop Ship Blueprint in module five, lesson six. If you're a member, go check that out. If you're not a member, be sure to go to dropshiplifestyle.com and get enrolled, so you can get all of our complete trainings. As always, if you got value from this podcast, please go over to your favorite podcast player, hit the subscribe button and leave a review. I read all of them and I greatly appreciate them. That's it guys. Thank you. I appreciate it. I will talk to you in the next episode of the podcast. See you.

  • Arip says:

    I like it 🙂

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