If you’re reading this, you’ve done some research on Ecommerce. Maybe you’ve already dipped your toe into dropshipping – more than likely, what we call low ticket dropshipping.
Most people start this journey by exploring cheap products on AliExpress or looking into becoming an Amazon seller. A lot of people think that’s a great business – for us, not so much.
It’s all about high ticket dropshipping.
In this ultimate guide, we’ll explore the ins and outs of high ticket dropshipping, including how it works, and how it differs from other models of dropshipping.
Let’s get the basics out of the way.
Dropshipping is a type of Ecommerce business with a different way of fulfilling orders for your customers. You don’t actually hold any inventory. Instead, when a customer places an order, you purchase the product from a supplier, who then ships it directly to the customer.
But we’re here to talk about high ticket dropshipping.
Most dropshipping, at least the kind you’re thinking of, is low ticket. Products in this category typically sell for $100 or less. Often, they’re shipped from China, arriving 30 days later in a heavily taped box filled with a disappointing, low-quality product.
High ticket dropshipping, on the other hand, involves selling products that retail for an average of $800 or more. Your products come from local suppliers in the same country as your customers. It works best when your products are tried and true, high-quality, and people are already looking for them. The result is a real business to fund your life. (In our case it’s US suppliers of US products for US customers)
What this business model looks like is simply an online store, specializing in a specific type of product or niche. And the niches are nearly limitless – beyond luxury goods like watches or handbags. (Which we do not recommend!)
Some great products we’ve sold are:
We get a lot of people (like a ton) asking us about dropshipping. Most of the time, the questions are specifically about low ticket dropshipping strategies. But to us, the best business model is high ticket dropshipping. If you want freedom, both time and financial, it’s the best way to go.
Here’s why we think high ticket dropshipping is worth it and performs better than other kinds of dropshipping or Ecommerce.
Let’s say your product costs $800. The average profit margin is 20-40%. That means you make about $160 to $320 per item. Pretty good, right?
To see those kinds of numbers with other types of dropshipping, you might have to sell dozens or even hundreds of products depending on the cost.
It’s simple math. The higher the value of the item you sell, the more you profit. That’s how you make money dropshipping.
The goal of any business is to scale, or at least it should be.
By choosing high ticket dropshipping and using our methods, you can easily grow your business. With a high ticket dropshipping model, you leverage suppliers to fulfill orders as they come in, so you can focus on bringing customers to your Ecommerce site.
While building your business, you’re also establishing your brand.
Customers are often willing to pay more for products they perceive as high-quality. When you set up your own Ecommerce site, exclusively selling high-end products, you’re building that perception.
This helps establish your business and build a strong brand, all with the goal of establishing yourself as a topical authority in your niche. You want to be THE place to go to buy your category of products on the web!
One of the main things I want you to understand (and I can’t stress this enough) is that the best way to be successful in high ticket dropshipping is to capture demand.
What does that mean? It means you aren’t generating demand for your product – you’re capturing demand that already exists in the marketplace.
Instead of spending blindly on ads, or working hard to create desire for an untested product, you’re taking products to the people looking for them.
This makes it much easier to drive sales and build a real, long-term business.
For example, Samsung has created demand for their TVs, not Best Buy. Best Buy has built a relationship with Samsung and is capturing the demand they’ve created.
If you want to be successful, you need to find a product people are willing to pay a lot of money for. Should be easy, right? People are online all day long, buying everything from pizza ovens to trampolines.
But let’s be realistic. It’s not as easy as it sounds, and choosing the right product niche is one of the biggest stumbling blocks for people starting out.
So, here’s our 7-step process for assessing a profitable product.
1. Price – How much does it cost?
Items need to cost an average of $800 or more.
2. Competition – How many competitors are there?
There’s a fine line when it comes to competition. You want to have some so you know there’s a demand for your product, but you don’t want to be overwhelmed. Aim for less than 15 direct competitors.
3. Enthusiast market – Will people want your product?
What we mean by this is, people want your product, they don’t have to have it.
4. How many people are in the market?
Are there enough people searching for your product? We use Google, and like to see an average of 20,000 searches per month throughout the year.
5. Are there enough local suppliers?
You want to have at least 10 local suppliers of your product in the local market.
6. Is the product evergreen?
You want to go for products that have consistently been on the market for years. This is the best way to build a reliable business around them.
7. Recurring revenue potential?
Will people buy the product once and be done? Will they buy it again? Will they buy related products?
Okay, so knowing what makes a good niche and coming up with good niche ideas for high ticket dropshipping aren’t the same.
In fact, finding high ticket niche possibilities is a lot easier than you might think.
Do what we call the touch point test – observe items around you during the day that cost $800 or more and make a list. Then ask yourself, who are you selling to?
After that, we want you to think about what you have a genuine, authentic interest in.
Why? Because building a business is a grind. You have to get up every day and get to it. So would you rather be working in an area you’re passionate about and enjoy, or something that just doesn’t do it for you?
If you want to achieve success and fulfillment, you may need to start with what drives you and build your business around that. (It’s not a prerequisite, but it sure helps.)
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.
Okay, so you want to start an Ecommerce business. Great!
Before you ruin your budget by spending on things you don’t need or run away due to mounting costs, check this out. Here’s all you need to do to get your business up and running. You can start dropshipping for less than $500. (Seriously!)
Your website is going to be the foundation of your Ecommerce business. And it’s not that expensive to get one. First, you need to see if the name you want is available, which you can do here.
When you find the domain you want (that’s available), you’re going to want to buy it and then register it. We like Namecheap (it’s really easy for domain registration).
Once you’re set up on Shopify, you need to choose a theme for your store. Remember, this is part of the foundation of your business, so you want to make sure everything looks good and is user-friendly.
You can choose from free themes and some that are paid. The choice is yours, but you don’t have to pay for one to get your store up and running.
Your contact information is part of what people first see when they come across your business. You want to have a professional email address. Google makes this process easy, and you can set it up with the URL you purchased.
Again, you want people to immediately see your business as professional and trustworthy. A business phone number is part of that, and you’ll need it for customer service. Try out Grasshopper or see if there are other free companies that can help you set up a 1-800 number.
Now the fun part! You need a logo, something that people will see and associate with your business. You can get this done on Fiverr for a reasonable price.
Taking our approach gets you up and running without having to spend a lot right out of the gate.
But now that you have a business, and a simple Ecommerce website, you can start setting it up to convert visitors into customers.
Your website is going to be potential customers’ first impression of your website – make it count.
You should also optimize your website for search engines by including relevant keywords in your product descriptions and titles. This will help your website rank higher in search results and drive more traffic to your store.
Remember, as we said earlier – you’re not creating demand, you’re tapping into an existing demand. So all you have to do is find the people looking for it.
A lot of people will tell you to use interruptive strategies like Facebook or Instagram ads, but that’s a waste of money (and annoying). On top of that, they can be costly and have mixed results.
Here’s what we know works.
Google Ads is one of the most popular pay-per-click (PPC) advertising platforms, which allows you to create and display ads on Google’s search engine results pages and its partner websites and apps.
Google ads are an effective way to:
Google Ads can be a powerful tool for promoting your high ticket products, with a massive audience of potential customers actively searching for similar products.
SEO for dropshipping is one of the most, if not THE most, effective strategies to market your business.
Search engine optimization (SEO) is the process of optimizing your website and content to rank higher on search engine results pages and drive organic traffic to your website.
This strategy includes creating blog content to answer questions your potential customers are asking about your niche.
Once you have people interested, you need to maintain that interest. Email marketing is a great tool for:
You can send targeted and personalized emails to subscribers, increase engagement, loyalty, and sales and stay top-of-mind with your audience.
You can also measure results and optimize your strategy for better performance.
This is a huge area that often gets overlooked – especially by people who think low ticket dropshipping is the easier, less expensive option.
If you understand business, you know that your customers are the lifeblood of it, and their satisfaction is critical to your success. Therefore, it’s crucial to provide excellent customer service and support.
This means being available to answer customer inquiries and concerns promptly and professionally. You should also have clear policies regarding:
You’ll also want a user-friendly website that makes it easy for customers to find what they need.
Most types of dropshipping rely on cheaply made imported goods. This can create more issues with quality, long shipping times, and unhappy customers. In short, customer service nightmares that you can’t really control.
That’s one of the reasons we think high ticket dropshipping is the best Ecommerce business model – fewer returns and more happy customers.
Why? If you follow our model, you’ll be using brands you’ve heard of, not random suppliers from overseas, and local suppliers who adhere to all quality control standards in your country.
On top of that, shipping times will be shorter because the products are already near your customers.
Returns and refunds are inevitable in any retail business. But with high ticket dropshipping, it’s easier to manage.
Your customers are researching and seeking out your product. It’s not like clothing that might be returned due to size or cheaper items that break.
However, it’s still important to have a transparent and fair return & refund policy in place to avoid disputes and legal problems.
Handling returns and refunds promptly and professionally is essential – this will help build trust with your customers and increase the chances of repeat business.
While you may not physically handle inventory, keeping track of inventory levels and product availability is still a priority. This helps you avoid overselling and causing backorders – which can damage your brand and customer relationships.
Consider using inventory management software or tools that integrate with your Ecommerce platform to help you track inventory levels and automate ordering and restocking processes.
Doing everything yourself works fine for a while – but it’s a recipe for stress and burnout, especially if your business scales rapidly.
Outsourcing allows you to delegate specific tasks and responsibilities to others and free up your time to focus on growth and strategy. Plus, you can access people with different skills than you – they can take care of the tasks you hate doing (or suck at!).
You can outsource tasks to reliable and skilled professionals, such as:
However, it’s important to effectively manage and communicate with outsourced team members to ensure that your brand and customer experience remain consistent and high-quality.
Most people who start a business want it to do well, live on the income, and keep building it. But did you know when you have a dropshipping business that’s doing really well, you can sell it? You’re building an incredibly valuable asset.
In fact, you can sell your high ticket dropshipping business for 2-4x the average yearly profit. That’s some serious cash, and a great reason to scale your business.
Likewise, you can buy a pre-built dropshipping business, though we advise caution around such an investment.
As your business grows, you’ll need to be able to handle more orders, customer inquiries, and other tasks. Streamlining your processes can reduce the time and effort required to handle these tasks, allowing you to focus on growth.
To successfully scale your high ticket dropshipping business, you need to establish yourself as an expert in your industry. You can achieve this by creating content that provides value to your customers and positions you as a topical authority.
Search engine optimization (SEO) is critical! (That’s why it’s in here twice!)
Optimizing your website and content for search engines increases your visibility in search results and attracts more organic traffic to your site. This can lead to increased sales and revenue.
You may need to hire employees to help you manage the increased workload as your business grows. This can be challenging, but it’s essential to ensure that your business can handle the demands of growth.
Hiring the right people and effectively delegating tasks can free up your time so you can focus on strategic growth initiatives.
As with any business, high ticket dropshipping comes with its own unique set of challenges. While the potential for high profits is enticing, you must be aware of the obstacles you may face.
Since the price of the products is much higher in high ticket dropshipping, returns and chargebacks can be much more costly. It’s important to have a clear and concise return policy in place, as well as a plan for handling chargebacks.
However, this is much less of an issue since it’s less likely your product was bought impulsively. You also have the advantage of using local suppliers so the quality has been checked and the delivery times are within reason.
To maintain a healthy profit margin, you must carefully evaluate and negotiate with suppliers to ensure you’re getting the best possible price for the products.
Remember that even with higher supplier costs, the profit margins in high ticket dropshipping can still be very lucrative. With the right products, marketing strategy, and supplier relationships, it’s possible to build a successful and profitable high ticket business.
To succeed in high ticket dropshipping, you need more than just a good product and a functional website. You need to have the following:
One of the keys to success in high ticket dropshipping is to focus on high-quality products that are local to you.
This allows you to develop a strong relationship with local suppliers, resulting in faster shipping times, better communication, and lower costs.
Providing excellent customer service is crucial for building customer trust and loyalty, including:
You need to care more about the person behind the screen than you do about your products.
High ticket dropshipping is all about building relationships with your customers. By showing genuine care and concern for the person behind the screen, you can create a loyal customer base that will continue to support your business for years to come.
The world of Ecommerce is constantly changing, so staying current on the latest trends and technologies is essential.
To succeed in any business, including high ticket dropshipping – you need to stay up to date on the latest trends and developments in your industry.
High ticket dropshipping is a popular business model that has been gaining a lot of attention lately. However, like any industry, it has many misconceptions associated with it.
Despite what many people think, starting a high ticket dropshipping business doesn’t require a considerable investment upfront. In fact, one of the biggest pros to high ticket dropshipping is you can get started with less than $500.
While having some knowledge of marketing is an advantage, you don’t have to be a pro to succeed in high ticket dropshipping.
Plenty of online resources are available to help you develop your marketing skills, and you can always outsource certain tasks to professionals if you need to. What’s more important is focusing on providing excellent customer service and offering high-quality products.
Like any business, high ticket dropshipping comes with its own set of risks. However, with careful planning, research, and execution, these risks can be minimized.
One way to reduce risk is to work with reliable suppliers and build strong relationships with them. Another way is to continuously optimize your business and adapt to changing market conditions.
With the right approach, high ticket dropshipping can be a profitable and sustainable business model.
High ticket dropshipping is a proven business model, one that we’ve used ourselves, as well as hundreds of students, to build multiple Ecommerce sites.
By following the steps outlined in this ultimate guide, you can start a successful high ticket dropshipping business and turn it into a sustainable source of income.
This dropshipping guide will answer many of the questions and doubts you might have about high ticket dropshipping.
Watch this on-demand training session (for FREE) that details the exact steps you need to take to get your high ticket dropshipping business up and running in just 30 days!
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
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