High Ticket Dropshipping vs Low Ticket Dropshipping:
Which Is Better In 2022?
Low ticket and high ticket dropshipping—what exactly are they, and how are they different?
While both are methods of dropshipping, the way in which these businesses are operated and marketed is wildly different.
The exact terminology might not be used by everyone, but in general, something that is considered “low ticket” is a product under $200, and something considered “high ticket” is a product over $500. (The value in between can be more of a no man’s land that’s very subjective.)
When you explore online sources of dropshipping information, the majority of the content you’re going to find is about selling low ticket products. For example, selling products on Amazon, eBay, through social media ads, and so on. Here at Dropship Breakthru, we’re all about high ticket dropshipping with products anywhere from $500 to $5000 or more.
The question is, is low or high ticket dropshipping better for you? We have a personal favorite, but the answer is not so simple. Let’s go through the pros and cons of both.
Watch it on YouTube Or Listen To The Podcast
Why Dropship In The First Place?
First, let’s touch on the benefits of dropshipping overall. If you’re looking for a quick, low cost way to get started in online business, dropshipping is one of the best methods that you can start with.
You can get started by yourself for a couple of hundred dollars at launch, and we’ve seen many people create their dropshipping business in 30 days or less. You can’t get much faster than that when it comes to creating a new business.
“Whether low ticket or high ticket, dropshipping businesses are a great, quick way to get started in business with a low cost of entry, low risk, and little overhead.” – Jon Warren
Pros & Cons Of Low Ticket Dropshipping
Pros
- Producing your own direct-to-consumer products can involve a lot of different hoops and difficulties. With dropshipping, someone else has already created the product, you’re just helping them market and distribute that product to customers.
- With low ticket items, you’re not short of options on products to sell—there are thousands of items out there for you to consider.
- There’s a very real possibility for a huge quick win with low-ticket items if some of your social media ads go viral or a product gains a lot of traction.
- It’s easier to buy a low-ticket product in bulk, and it costs less to do so when you do.
Cons
- With low ticket items, you’re essentially forced to run demand generation campaigns and ads that interrupt the social media experience of your potential customers. It’s likely consumers don’t even realize that they want or need your product, and you need to convince them otherwise. Doing this consistently and profitably is actually very difficult for inexperienced marketers.
- There are wildly unpredictable costs for actually making a sale. You have to fulfill many more individual sales to make the same profit that you would with a small handful of high ticket sales. With those high order numbers, you’ll likely need a team to help fulfill your orders on time. This introduces significant, unexpected overheads into the business.
- With a larger volume of orders comes a higher risk of packages being damaged during shipment, mistakes on orders, and frustrated customers. That’s a high volume of complaints to address if you’re on your own, which means you may need to pay for the expense of growing your customer service team.
- Products can become unpopular and undesired at the drop of a hat. Low ticket products are a turn and burn process—once you ride the wave of one product, you have to start the process all over again with a new one.
- Often, low ticket products are also low quality or are largely untested in your customer’s hands. This increases the rate of returns, customer complaints, negative reviews and ad account suspensions.
“Your method of advertising in low ticket dropshipping is interrupting potential customers as they’re scrolling through social media to get them to stop long enough to see your ad. It’s a creative game.” – Ben Knegendorf
Pros & Cons Of High Ticket Dropshipping
Pros
- Instead of have to create demand, high ticket dropshipping takes advantage of demand capture. Because the products that you are selling are already established by recognisable brands in the target market, consumers are already educated about their existence, so you don’t need to do that heavy lifting.
- There’s a high profit per order with high ticket items (often over $1000 net per order), which means you get more time back in your day to do things you enjoy. What can take hundreds of sales of low ticket items only takes a small handful of sales of high ticket items for the same profit margin. This means less work for the same money.
- High ticket items have often already been on the market for significantly long periods of time. This means that they are tried and tested. They are high quality and they do what they promise. For you this means less problems, chargebacks, returns and defects to deal with.
- You can build a real, solid business and brand without having to cycle through products often. You’re selling an asset instead of the hottest new trend. Once your business is established it creates an easy way to leverage your brand into producing your own products to produce a higher margin.
- High ticket dropshipping is a great way to get paid to learn. When you’re building your business, you learn so much about a deep, established industry, and you can use those learned skills in other businesses and contexts. If you end up building a successful high ticket dropshipping business, you’ll be an expert on things like Google AdWords and SEO, which are highly sought-after skills.
- High ticket items are often created and maintained by local businesses, so you’re supporting your community while selling fantastic products.
Cons
- Honestly, there’s not much to say here. The biggest and only con with high ticket dropshipping is the con of dropshipping in general.
That is, in the beginning, you are reliant on your suppliers’ supply chain to fulfill orders. This can create a few headaches along the way that might not exist if you were producing your own products. Having said that, there is nothing here that you can’t overcome, particularly with some good guidance from other experienced dropshippers.
Key Takeaways
No matter whether you choose low ticket or high ticket, starting a dropshipping business can be an easy and fun way to enter your desired market and learn more about how to run your own business.
You just need to decide what kind of product you want to sell, what kind of time and manpower commitment you can make to the business, and what you want to get out of the experience.
For more information on dropshipping, you can listen to our podcast, The Dropship Podcast, on your favorite podcast platform and share it with your friends.
If you’d love to learn more about how to take your first steps towards launching. your own high ticket dropshipping business, watch our free training here.
Want to start your own high ticket dropshipping business?
Watch this FREE, on-demand training session that will uncover the exact steps you need to take to launch your first high ticket dropshipping business in the next 30 days.
© Dropship Breakthru 2021