Free Plus Shipping Tripwire Offers

Ecommerce related question from Siddharth P. Vancouver, BC for free Q&A call.

I have a store and we are facing problems with getting enough orders to be in profit. We are selling Free+Shipping with the product costing $9.95 and every added product $5 extra like $14.95 for 2 units, $19.95 for 3 units and so on. The store was doing really well in the months of November and December. The ad budget in those months was $300/day and we were regularly getting orders of $600-700. We even had a few $1000+ days in those months.
Things have changed dramatically now. January was a disaster as we even struggled to reach $400 on some days with $300 ad budget and on few days we went past $500 but never went past $600. In Feb the ad account was put under review by Facebook and after submitting some doc it was finally released after 2 weeks. We have reduced our ad budget to $100 and we are making about $147 but its still a loss and we need to a make a min of $160 to make any kind of profit. I would really appreciate all suggestions and help so that we can start making profit again.

Reply from Yaletown SEO

Normally when I do a F+S offer it is using a product that costs less than $1 to buy and make up for that + whatever your cost per customer acquisition is ($2) so charge $4.99 for shipping e.g. credit card knife (e.g. SurvivalLife.com did it with the folding credit card knife) and charge only enough on shipping to cover your cost for acquiring ‘buyer’ customer emails. Once you have a break even funnel, just continue to build it up. The point isn’t to make money on it but to grow your subscriber list. When you have a subscriber list of 10k+ emails there is a lot that you can do from there.

Once you have the subscribers, you can then market higher end products. Market low ticket items as you would a high ticket item that costs $1000 with nice videos and so forth and your conversions will go through the roof (since they are impulse purchases). When dealing with Facebook traffic you are interrupting customers who will mostly buy out of impulse or be willing to give their email to receive a free offer. With Google Adwords traffic on the other hand you are usually trying to position yourself for when the customer has an intent to buy.

$9.95 is high for a F+S offer. I think you’d have better results marketing a lower priced F+S offer even if you are losing some money on the front end. The real money is made on the back-end.

The bigger picture is attracting sales from people who are already spending money on larger purchases. Build a relationship with them through email, social media, video, and through other channels that your target market hangs around in. Webinars (especially automated webinars) are a great addition to any sales funnel. Eventually some customers will trust you and also buy your higher ticket items so be prepared to deliver your best. Get referrals, continue to tweak your offer/landers, and also introduce some new traffic sources… I recommend focusing first on Google Adwords and Facebook Ads.

Here is an example of what that might look like using a product I randomly picked that has high sales volume in online marketplaces.

moses yoon tripwire free plus shipping funnel

You can do a lot with 500 new buyer leads! Every business can benefit from having such a funnel because there are unlimited ideas of creative offers for virtually every business out there. It’s how you monetize on the back-end that counts.

I recommend picking up a copy of Dotcom secrets by Russel Brunson. I don’t agree with everything in there but it is a good book. As an example he says for upsells, don’t sell more of what someone already bought but sell something complimentary. I’ve tested it many times and people will buy more of what they already bought as long as the offer is good. It also makes things a lot easier for inventory and fulfillment.

A good tripwire offer fulfillment service that I recommend for small lightweight items like jewellery is dollarfulfillment.com. Just ask for Jason. You pay just a buck to get your items fulfilled. When you ship larger items use a service like Shipwire, Amazon FBA, Shipstation and look up other alternatives best suited for your product weight and type.

Scripts + Traffic + Funnels

See more: http://mosesyoon.com/online-marketing/marketing-funnel-hacking-growth-hacking/

Once a front-end funnel and autoresponder sequence is set up, the ROI should drip over a few days.

Other things to look into.

Using new Facebook ad images and ad copy to prevent ad fatigue.

Retargeting ad – Dynamic.

Use apps like cart abandonment protector, Klaviyo,  upsell app (the upsell app by Bold Apps version is not as good as one we can custom build for your store).

Using software like rare.io, try segmenting your repeat buyers, plugging them into a custom audience (emails), and then setting up a lookalike audience. From there, serve the ads to your lookalike audience and let Facebook find buyers most likely to convert for you. You don’t need narrow targeting at this point. Just have your conversion pixels ready and run website conversion ads. Sales should start coming in again as they were.

If not it could be something else — maybe even friction on the checkout pages — so verify that.

If it is an issue of customers right clicking on the image in Google Chrome and doing ‘search google for this image’ and then seeing Aliexpress or another site selling it for less, that might be costing you conversions as well. I recommend taking your own product photos and also looking at your suppliers images. Often times when you dropship and they see you doing well they will hijack your listing via SEO, image SEO, main keyword + manufacturer SEO, and so forth. They (manufacturer sales agents) also tend to be on niche specific forums, social media (facebook messaging), as well as email spamming.

In the long-run it helps to have a better understanding of what makes a good manufacturer. Too many ecommerce companies rely on suppliers that are just competitors. But if you are not doing your part as the marketers, then don’t blame the manufacturers either (in general).

Take a look at the website’s reviews. Try searching for “brand + reviews”. Are there negative comments on your Facebook fan page? Never leave questions unanswered as it simply looks like the company doesn’t bother to respond. It wouldn’t inspire confidence in your customer support. Also, leverage existing customers by soliciting positive feedback. It may cost you some money in the front-end but remember, you are building a long-term business asset. By increasing trust, you are also increasing your conversion rate and retention rate.

Continue to build your fan base. Perhaps not directly on pages where you direct traffic from Facebook but on other pages, you can add exit intent popups with your product and a coupon code if they make a purchase. You can also collect an email or generate likes to your social profiles. Try to extract as much as you can from your paid traffic so you can reinvest and achieve higher ROAS.

Those should be enough for starters.

Examples of sites with low-high offers. If you have good products and margins, you don’t necessarily need a break even funnel.

Holla, Choxi, Gear Best, etc

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