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In this tutorial, the speaker explains how to format a zip code, specifically in the United States where it is nine digits long, with five digits followed by a dash and then four more digits. They demonstrate how to set up cell formatting so that when someone enters a zip code, the dash is automatically added. This involves changing the cell format by right-clicking, going into format cells, and specifying the desired format. This streamlines data entry and ensures consistency in zip code formatting.