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In this video tutorial, Ryan demonstrates how to extract postal codes or zip codes for a list of addresses in Excel using a free service called Post Grid. The process can be done in bulk for up to 500 addresses without any coding required. He suggests pulling out the addresses from a file containing other data and placing them in a separate file to simplify the process and handle errors efficiently. The extracted information can later be added back into the original file. You can either copy and paste the addresses or use functions like index match to add them separately.