Do you want to make money from your print-on-demand store? Well guess what? Today we get to jump into one of the most fun topics in the world. You got it Finances101. Now you all probably just about clicked off the video, but here's what I have to say.
Making sure the financial aspect of your online store is properly set up is integral to the success of your print on demand store. So in today's Finances101 video with our Wix and Printful series, we're going to cover three main topics.
We're going to cover how shipping works with Printful and how to make sure you're properly set up in Wix. We're going to discuss choosing a payment processor and which one would be best for your print-on-demand store. And then we are going to close with some product pricing strategies and how you can make sure your pricing at a competitive and strategic route.
So with that said, I don't know about you, but I'm ready to jump into today's content
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Finances101 - Product Pricing Strategies, Shipping and Payment Processors
Now, I'm sure you're like Michael, wait, I want to jump into the finances. I'm just so excited about it. But before I take you through that, I have one major favor to ask if you would be so kind to hit that subscribe button in the bottom right of this video and turn those bell notifications on so you don't miss any content here just like this series and you'll instantly plug into 31,000 plus like-minded entrepreneurs. That would be fantastic and you'll join the Wix Nation family. I'd love to have you.
The year is 2020 just like my vision, so I'm going to go ahead and protect it with these blue light glasses as we dive into Wix and Printful Finances101 - prices, shipping and payment processing. I promise finances101 is going to be more exciting than it may sound, but guess what? This series is gladly sponsored by Printful and let's jump into today's video with one main objective, which is to provide you the tools and resources to get the financial side of your print-on-demand store up and running. And we're going to do that in a two prong approach.
However, we are going to discuss shipping in this video as well at the start so we can cover that. But once we get past shipping, we're going to discuss payment processors, the different payment processors available to you and what is going to be best for your print-on-demand store. And then we're going to do a pricing strategy session and do a breakdown of some strategy to consider when pricing your Printful products and your print-on-demand store products so that way you are at a competitive and market rate.
How Shipping Works
So to start this video, as mentioned, I wanted to discuss how shipping works. So I just want to give you just like an overview of how this works. You're going to have a consumer, go to your on demand store, they are going to purchase a product when they purchase that product from your online store, Printful real receive that order. Printful isn't going to go through their process of printing the product, fulfilling it, packaging it, and then they are going to ship the product to the end consumer. You pay Printful for that whole process, that service they're providing. Plus you pay for the shipping of the product to Printful. So Printful is going to ship that product to the end consumer. You are paying Printful for that shipping as well. I'm going to go through here in just a second, a breakdown of some of the shipping costs that Printful provides for each of their product categories. But before that I wanted to explain this.
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So what you can do is you have the power on your side of it through Wix to actually add a shipping cost to your consumers. So you can push that cost onto the consumers if you'd like. Or if you decide, you know what, you don't really want to charge shipping, you'd like your online store to be free shipping. You can build the shipping costs into the overall price as well. So those are some considerations as far as how to integrate the prices into the shipping. Either charging your end consumer they shipping that you're going to be charged by Printful or you can just build it into the price. So it does it, you know, it appears that you're offering free shipping, but really it's just built into your prices already. So it kind of bypasses that.
So Printful charges, flat rate per product, and their fulfillment and shipping times vary by location, whether that's us or other countries. It varies by location. I'm going to show you a map in a second and then I'm also going to show you how you set your store shipping through Wix.
So without further ado, let's dive into the shipping costs and times through Printful and then how to update that in Wix.
Shipping Costs and Shipping Speeds
Okay, so we're over here on a landing page that Printful has created. It's very, very in depth and detailed, so it helps you really understand this process. But I wanted to first touch on shipping speeds and fulfillment times. So you can see a map here on this landing page and I'll throw a link to this in the description below. And you can see kind of what the average fulfillment and shipping time is per location. So if you hover on a map, you can see like, okay, United States is commonly three to four days however you go down to or even go up to Canada and it's commonly six to 10 days. So you can see the differences in fulfillment shipping times.
And then there are some places such as an Africa here where there's not enough data yet to currently explain, you know, this is how long it's going to take. So that's how the map and the shipping speeds and fulfillment times work. It varies by location. Check this map out if you've got a particular location. However, what I wanted to show you is right here, which is get to know the Printful shipping rates. As I mentioned, I'll highlight right here.
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These are standard rates that are fixed and calculated based on the average shipping cost for each product category. So what this essentially means is each of these categories has its own assigned shipping costs. So for instance, we were building a t-shirt store. So if we clicked on t-shirts, we can see that this encompasses t-shirts as a whole and for the first product. And it varies by location. Shipping costs would be $3.99 in the U S and for every additional t-shirt above that you can see it's a dollar and 25 cents. So that's kind of how it works for each of the products.
And you can go through and you can get an idea before even, you know, deciding what you're going to charge your shipping to your end consumer, if you're taking that route, what it's going to be. So you've got a very clear idea. Okay, if I'm creating a bag here you know, if it's a backpack, it's going to cost me $9.99 to have it shipped as the first product here in the U S and for every additional $4 for shipping.
So, you know, okay. If, you know, if that's the case, you know what to charge your end consumer, you know, $9, $10 $13. It depends. But you've got an idea here to go through and look at the different shipping costs. As it says at the top, just to refresher that these are the standard shipping rates and they're fixed calculated based on average shipping costs for each product category and of course location as well. So that's how you get to know what the Printful shipping rates are.
Now, if you decided, “You know what, I'd like to provide a shipping cost to my end consumer when they purchase on my website” I'm going to show you how to do that on Wix. So if you go into your Wix dashboard, if you still remember where that's at, I know we haven't been there in a little while. What you're going to want to do is you're going to want to go into the dashboard and then once you get here, and I'm speaking of the dashboard that your online store is living on, that you built your website in, you're going to go to settings and then once you get to settings, you're going to see store shipping as an option. Down here on the left sidebar, you're going to click store shipping and then it's going to take you to shipping and you'll have the ability to actually come in here and change regions, add regions, and you can edit the shipping.
So if you edit shipping, you can choose what the region is. In this case, this is United States, and then you can choose how the shipping rates are calculated. So right now it's set to free shipping, but you can come in here, you can charge flat rates. Sometimes this is going to be easier since you already know what Printful is charging you for shipping. You can do rate by weight rate, by price, a USPs calculated or store pickup only. And you'd literally come in here if you did flat rate, you choose the name of that delivery option. So people are very clear and understanding, okay, this is what shipping I'm getting. You enter the estimated delivery time, use Printful’s chart to estimate that. And then you'd simply enter the rate and then you can even offer a free delivery when customers purchase x amount of dollars on your website.
You can add a handling fee to every order you can allow in store pickup. These are all options you can do by editing here in Wix and you can change this for each of your print, printing options and then you can even come in and you can charge international or you can create your own region. Maybe you've got like a Northeast shipping region or a Southwest shipping region and you can create the prices for each of those or you've got an international country shipping region and that can all be managed during Wix, so that way when someone purchases on your online store, they'll have the shipping tab, a shipping price tap on so that way your receiving the shipping costs that you're going to ultimately be paying Printful. So it just negates itself and that's how that works was shipping.
Now let's dive into payment processors and helping you determine what to look for in a payment processor and choosing the best payment processor for you.
Payment Processors
All right, let's now talk payment processors. So a payment processor essentially allows you to accept payments on your website except debit cards, credit cards on your website. Now there's a few things to consider when looking for a payment processor. You want a payment processor that offers high security, a streamlined process. What I mean by this is that their checkout process is really easy. It's easy to accept the credit cards because complex checkout processes actually cause a large drop off in sales in online stores because people just get confused.
You wants some with a streamlined process, you want some with moderate transaction fees. Obviously the lower the better because the less a transaction fee means the less they're taking out of each sale from you. You want one that offers a variety of payment methods from being able to take straight from your bank credit card, debit card.
Those are some examples of just being able to offer a variety of payment methods rather than one. Like you have to use American Express or you can't use American Express. So that offers a variety of cards to be able to use as well. And then you also want to check out customer reviews of different payment processors. You don't want to use payment processors that have really crummy reviews.
Now with that said, I've prepared a list of the top payment processors. Both I would recommend and that are recommended. The top ones include Stripe, which has the highest level of security. It's got 2.9% plus a 30 cent the per transaction. So it's 2.9% per every transaction plus a 30 cent fee per every transaction. Then you've got PayPal. Paypal is very well known. Paypal is also 2.9% plus 30 cents per transaction. Paypal has got some impressive security as well.
Like I said, Stripe has the highest, PayPal is a close second. Then Wix actually offers payment processing now too. So instead of having to go use a third party, you can actually do the payment processing straight through Wix, which their payment processor and I'm going to give an honest review, is brand new. So there's still a lot of work to be done with it. It's 2.9% 30 cent transaction fee as well. Their security is great. But like I said, it's not super intuitive. It's not like a whole entire really complex dashboard where you can manage a whole different you know, a whole load of different aspects from invoices to transferring money, requesting money, kind of like PayPal and Stripe. It's not up to snuff with that yet, but it is effective. It does work and it is really easy to use since it just integrates straight with Wix.
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And then lastly, Braintree, which Braintree is actually created by PayPal and that is 2.9% plus 30 cent transaction. You can see there's a trend here. All the payment processors kind of got on the same page, same level playing field when it came to transaction fees. There are a few others that do charge higher transaction fees. I know authorized.net is a bit higher, but that one doesn't currently integrate just seamlessly within which without some development and coding needed. So these are the ones that integrate seamlessly with Wix.
And my personal recommendation out of these would be Stripe. Like I said, Stripe has the highest level of security. It's got a very comparable transaction fee. It's got great customer reviews and it's just something that I've used for both myself and many of my clients and it's worked really, really well. So that would be my recommendation to you when choosing a payment processor for your online store.
Setting Payment Processor in Wix
And now what I would like to show you is how to actually hook up the payment processor in Wix. So just like for shipping, we're going to come here to our Wix dashboard. We're going to go to settings. And then we are going to go down to accept payments. Once we get into accept payments, you're going to see right here, choose the best way for customers to pay you.
Now you've got a variety of options here from accepting debit and credit cards with Wix. This is the Wix payment processor. This will also allow you to integrate with PayPal, Ali pay, a manual or point of using the Wix pay API, which I can link another video. You can also integrate with Stripe. Like I said, Stripe is my preferred method. But these are the already preset ready to just plug and play. All you would do is press connect me and then it would have you sign into your PayPal account or register for a Wix payment processing account.
And that's how easy it is to get started and get your payment processor going. There's one key note here. You need to have a premium e-commerce plan on Wix to accept payments through Wix, which means you need to use one of their business and e-commerce plans. I'll throw a link to those down in the description below.
Product Pricing Strategies
Now let's dive into our product pricing strategy session and discuss how to best price your products for your print-on-demand store. Now we've arrived at your favorite part, the part where you get to figure out how to price your products so you can make more money. So there's a few different things I wanted to touch on with our product pricing strategies that are important and integral to any product pricing strategy. But especially when it comes to a print-on-demand store and using a drop shipping service a print-on-demand service like Printful.
So first and foremost, market value. So this is often a term just thrown out there, but you've got a target market that you're going for, right? So what you have to figure out is, you have to do some market research and look at other companies that are selling either the same things or similar things that you may be selling and kind of what they're pricing their products at and what are they selling. If they are, are they selling successfully and doing your own research and market analysis or hiring somebody to do market analysis on your target market and what they tend to buy and at what rate they tend to buy it.
This is going to be a huge contributing factor to your overall product pricing strategy because if you mark our, if you price way above what your target market would typically buy on a product of similar nature to a competitor, then you're likely going to start to lose sales just because it's so far above with their normal normal market value is.
However, if you price way too low, you might end up operating at a loss and just completely undercutting your value and your products value and the time involved. And then that could be just as detrimental if not actually more detrimental than pricing way too high. So you need to find that nice market medium to figure out what your market purchases that.
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The next thing you have to take into consideration in your pricing strategy is you're using Printful as your print-on-demand service. They're doing all your printing, your packaging fulfillment and shipping. So Printful has got two main costs to you that you need to be aware of. They've got their normal product price. This is the base product price. So what they charge you to actually utilize their product and obviously print it and package it. That's their fulfillment price.
And you can see on the video here, I've highlighted that plus we just discussed shipping in this video. So you also have to take into account Printful shipping price. So you have to put those two prices together to figure out just what your price is from Printful to actually make your product and distribute your product. So you have to take those two prices into consideration and then you've got your cost of goods sold a starting rate at it. So you're now you'll know, okay, when someone purchases this product, it's going to cost me this much money. And you'll do that by looking at what the Printful product prices plus the Printful shipping costs. And I showed you both of those in this particular video. And that's what your cost of goods is.
Then you have to take into consideration any additional operating costs over and above your Printful costs. So on a monthly basis, you know, how big is your operation? You know, what does your hosting look like on a monthly basis for your website? What does your domain costs look like on a monthly basis for your website? Do you have an office that you're operating of, out of for your online store to really grow, do you have any other team members on staff that you have to pay on a monthly basis? So what you need to do is you need to break out what all of your operating costs are. What does it take for you on a monthly basis in terms of expenses to run your print-on-demand store? Maybe it's nothing. Maybe it's simply the costs from Printful and your website hosting costs and that's it and that's your cost of goods sold.
But if you've got team members and staff, if you've got an office, if you've got internet phone bills, all that you have to pay through the business. Those are all operating costs on a monthly view that you have to take note of because you need to know what that total is. So that way you know exactly, you know what type of pricing your product should be at and how much of your products you have to sell to be able to flip a profit to either break even or flip a profit on your operating costs and print full costs.
So those are two important aspects of costs you have to take into consideration because obviously you're not going to price a product below your costs, your cost of goods sold, because that means you're losing money on each product. So you need to be above that, which is why you need to get very familiar about what your costs are for each product.
The other thing you have to take into is cost of returns. Not everybody that purchases a product from you is just going to absolutely love it, keep it adore it. It just doesn't work like that. There are going to be people that want to return the product. You have to take into consideration what that cost is for people to return it to you. Are you going to pay for their shipping? Are you going to refund them their money? These are all additional costs you have to take into account and make sure it's accounted for when you're pricing your products.
Because if you price, like I said, too low, you're just going to run yourself out of business. But if you price yourself too high, no one's going to purchase the product. So you got to find that balance. So the cost of returns, shipping it back refunding that person's money, then potential coupons.
Are you gonna run advertising campaigns and try to draw in new customers via coupons to increase the customer base? If you do, what percent or what dollar amount or what type of coupon offering are you going to give because you have to make sure that the price of your product is still high enough, even after a coupon is added, that you're still making a profit. Otherwise, if you offer a coupon, you could end up, like I said, operating at a loss and selling your product for less than you are actually spending on creating it and you don't want to do that.
So you need to take into consideration, “Okay, if I'm creating a $5 off coupon and my price from Printful for product price and shipping on this hoodie is $25 plus I've, I spend $5 on offering a coupon, that means now my price is $30 that I'm paying to get this product created and shipped for the end consumer.” So now you're at $30, okay? And that's without taking into consideration any additional operating costs or cost to return.
So you want to give yourself a buffer there. So then you start looking at it and you're like, “Okay, so my costs are maybe somewhere, anywhere from 30 to $40. I want to give myself enough buffer and still make a profit on this item. Maybe I should be selling this item at $60 or 67 75.” And these are different pricing strategy.
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The other thing you want to think about is you don't, with pricing, it's interesting. It's a very psychological thing. So a lot of times you're going to see infomercials selling pillows at 1995 going up to that next whole dollar sometimes throws people off and it's like, Oh wait a second at 1995, that's a better deal than me spending $20. So you want to try to hit those sense before just pricing out round numbers.
Now pricing psychology is a whole other topic for a whole other video. And if you'd like to see me do a video on that, just let me know in the comments. But that's just another thing to take into consideration. Instead of charging $60, charge $59.95 or instead of charging, you know, $65 $64.97 or $64.95 and that actually does play a psychological effect on someone. So take that into consideration.
And the last thing you need to consider when pricing your product is what you would like your profit to be. Do you have projected profit? Would you like to make a certain percentage of profit on each sale or would you like to make a certain dollar amount of profit on each shale? And if you figure out what that number is, you can even work it backwards from that like you want to make $15 on every sweatshirt sale. If that's the case, you need to say, “Okay, $15 now what are all my costs? Okay, my costs add up to $40 so what do I have to be priced at in order to make $15 on my $40 costs?” Well, you need to be priced at $55 if that's the case and you wanted to make $15 profit, but you need to make sure you take into account all the other aspects of those costs and then you can determine what that price is going to be.
But these are all product pricing strategies that you need to get familiar with. But my biggest tip to you is know what your costs are. Know exactly ironclad, what it costs you to make each and every one of your products from Printful. Now what the product prices know what the shipping price is, know what the operating costs are, know what the cost of returns is, know what your potential coupons are going to be.
So that way when someone comes up to you and says, “Hey, how much did it cost you to make this hoodie?” You can say, that costs me $47.65 and you sold it for $64.95 and you know exactly what your prices are and exactly what your costs are. So that way you never have to worry about being unaware of your numbers and whether you're operating at a good healthy profit in the business or in a loss because that's not where you want to be.
Conclusion
So that would be my tips for your product pricing strategies. I know there's a lot that goes into that, but it hopefully I was able to break it down to a easy to understand level. At the end of my recording, it got really cold and started snowing, so I did what every good person would do. Went and got a hot coffee with my Printful mug here and that will conclude our video for today.
I hope you enjoyed this Finances101 I know it seems like a lot, but guess what? It's a very important aspect to your business as you just saw from pricing strategy alone, because it'll determine whether you are successful or operating at a loss in your business. And obviously I want to see you and Printful would like to see you on the successful side of that spectrum. So as far as today's call, the action goes.
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Make sure if you haven't already registered for a Printful account, you can use my affiliate link down in the description below and go on mess around with Printful, add products to your store, create your designs and try making a test purchase. Now that you've set up your payment processing on your website so you can make sure that it's actually working and it's effective because guess what we're doing and next video we're launching, it's time for you to launch.
You've got all the components now to launch your print-on-demand store. So let's do it. If you guys enjoyed this video, drop a thumbs up down below, comment if you liked this video, what you liked about it, what your favorite part was, and make sure you hit that subscribe button, the bottom right of this video. So you never miss a single upload here on Wix Training Academy, and you'll plug into 30,000 like-minded entrepreneurs here in Wix nation.
I look forward to catching you on our next video where we're going to launch your online print on demand store. But until then, make sure you go onto Printful. Use my affiliate link in the description below to register if you haven't already, and create your first sample test order.
Now that you've got all of the payment processing and shipping set up to make sure everything is working and effective, I'll catch you on our next one and we'll launch our store.
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