Dropshipping high-tickets has been receiving a lot attention in recent years.
While some people swear by it, others find it too risky. It’s even considered too fraudulent to be a viable business idea.
Who is right to believe?
This guide will examine high-ticket dropshipping.
Your brain will explode with all the information you need to sell high-end items by the end. It will help you to understand the risks and the potential benefits of selling high-end items.
Does that sound good? Let’s get started!
What is high-ticket dropshipping?
Dropshipping with high prices is simply a type of dropshipping where the focus is on selling higher-end items rather than cheaper.
Although I was initially skeptical, the idea didn’t surprise me.
It’s actually quite different to traditional dropshipping.
Dropshipping is a traditional method of selling impulse purchases.
Impulse buys are usually less expensive than a few dollars and have a low margin. You can think of posture braces or fidget spinners.
Dropshipping is a high-end method of selling expensive items. You can sell items as low as $100 or up to $10,000. You can think electric bikes and industrial machinery.
This distinction is important because product price variations can have huge implications on how your business runs.
A high-end store will require you to modify your marketing strategy, source your products differently, and provide customer service that is different.
Although high-ticket dropshipping and low-ticket dropshipping use the same fulfillment model in theory, they are two different things in practice.
This will be covered in more detail later. Let’s start by learning why high-ticket dropshipping is a good option.
Dropshipping at a High Price: Pros and Cons
Dropshipping is a lucrative business model that can bring in big rewards for those who are able to do it well. It’s not without risks, but it does have its drawbacks.
Let’s take a look at the pros and con.
Dropshipping Benefits for High-Ticket Customers
Dropshipping high-tickets has many great aspects.
1. Every sale brings you more profit
Selling expensive items can often result in higher profits.
If you sell a home theater kit for $500, and your margin is 30% you will make a cool $150 per sale.
This is in contrast to selling low-ticket products. You’ll make $6 per sale if you sell a $20 t-shirt with the same margin as 30%.
To make the same amount of profit selling one home cinema kit, you will need to sell 25 tshirts.
Two things are necessary to make more money from every sale:
- To make a living, you’ll need to sell fewer products.
- To grow your business faster, you can reinvest more money back into it.
2. Support for customers with lower volumes
Dropshipping with high-ticket items will likely result in a lower volume.
This means that you won’t need to spend as much time and resources as a traditional dropshipping shop with high volumes and low margins.
What is the implication? This will allow you to spend more time on other areas of your company without sacrificing the quality and support.
3. More targeted marketing
You can target your marketing efforts more effectively when you only sell a few high-ticket items.
A high-ticket store can use a dial-in approach to communicate with one buyer rather than the scattered-gun approach common to many dropshipping shops.
This allows you to optimize your paid ads and provide customers with a more engaging shopping experience.
4. More sustainable business models
Dropshipping is a traditional method of selling hot products, jumping from one trend to the next until it becomes too saturated.
Dropshipping high-ticket products is not always the best option. This means that you will face less competition from dropshippers.
It also allows you to focus on building a brand and customer base over the long-term, rather than just opening a Shopify store that makes a quick buck.
Dropshipping Drawbacks for High-Ticket Customers
Let’s now look at the bad aspects of high-ticket dropshipping.
1. Higher start-up costs
Your capital requirements to launch your business will be lower than many other business models.
However, dropshipping is a low-cost option that requires more money.
- You can invest more in a great store design.
- Due to the higher acquisition costs, advertising budgets will be larger
- When you sell, cash reserves can be used to purchase expensive items.
2. Orders carry more risk
It’s not usually a big deal if a $15 phone bag goes missing during transit.
There are no hard feelings, just a refund.
But, if the $2,500 restaurant appliance isn’t delivered, it’s another story.
What happens, for example, if your supplier is high-profile and disappears into the night without your $1,500?
As you can see, the potential profits increase along with the possibility of losses if things go wrong.
Before you jump in with both your feet, it’s important to consider these factors.
3. For beginners, it is difficult
A more sophisticated marketing strategy is required to sell higher-ticket items.
Selling high-ticket items is not an option for those new to eCommerce.
You’ll have greater success with dropshipping if you don’t have any experience in branding or building sales funnels.
How to find high-ticket products
You should now have a better understanding of high-ticket dropshipping.
People often ask the following question: “Where do you find high-ticket dropshipping products?”
Let’s take a look at three conditions you need to follow before you sell high-ticket items.
- Quality is the main focus of Big purchases are accompanied by high expectations. A premium price for inferior quality products is a ticket to the charge-back zone. Take samples and carefully appraise the items.
- Premium Shipping:Customers who spend a lot don’t want their orders to take six weeks to arrive. Send parcels quickly via FedEx or DHL using your higher profit margins.
- Always Vet SuppliersBroken, damaged or non-functioning products simply won’t do at higher prices. You need to find a reliable, trustworthy supplier that you can have a long-lasting relationship with. You should expect excellent communication, decent refund policies, and quality control.
Keeping these things in mind, let’s take six steps to find winning product ideas.
Six Steps to Get High-Ticket Dropshipping Products
- Brainstorm Everyone has at least one idea of a high-ticket item that will sell. Ask Google Docs for high-ticket items that you think would sell well. This is a great place to start.
- Check out what’s in demand: The most popular products are highly sought after. Go to Amazon’s best-selling products. Take a look at what products are being purchased. Do you think it is possible to dropship products similar in nature? These products can be added to your shopping cart.
- Study Hobbies People like musicians, golfers and hikers are passionate about their hobbies which leads to them spending a lot of money on equipment. What are they looking for that you don’t have? These items can also be written down.
- Visit Social Shopping Sites Browse through different niches like interior design, baking and gardening. Do you have any products that you can dropship?
- B2B is what you should be thinking about:Businesses have more money than consumers. Consider the equipment that restaurants, schools, and offices might require. You might also want to add them to your list.
6. Validate your Ideas Once you have 30+ product concepts on paper, head over to Google Trends and enter each one to determine if there is enough search volume for the product. It’s great news if the trend is increasing or flat.
High-Ticket Dropshipping Product Example
Let’s use the above steps to find a high-ticket drop shipping product that is worth testing.
Amazon Bestsellers helped me find this telescope ranked #2 for photo and camera.
So I went to Aliexpress and searched for “telescope”, filtering by “most ordered” and found this very similar product for about $100 less:
Next, I went to Google Trends. The data showed that the term had a solid search volume for the past five years.
Surprisingly, the volume of this shipment has significantly increased in the past twelve months.
These findings suggest that this product is worth adding to the refined list of products you want to build a store around.
It’s simple, right?
Continue searching until you find a solid selection of products that are worth taking to your next step.
- Magento Pos
- Shopify Pos
- Bigcommerce Pos
- Woocommerce Pos
- Netsuite pos
- Bigcommerce automation
- Shopify automation
What are the Best High-Ticket Niches?
Dropshipping high-ticket niches is a good option.
You should look for niches with low brand loyalty and higher perceived product values.
Here are some high-ticket niches that will help you kick-start your search.
- Home theater equipment (e.g. projectors)
- Accessories for automobiles (e.g. Car seat)
- Office furniture
- Commercial appliances
- Appliances for the home
- Interior design
- Personal transport (Electric bikes, scooters, etc.)
- Consumer electronics (wearables
Tip: Dropshipping is a high-ticket option that allows you to sell directly to customers. Many businesses need imported products, and will pay a premium to have you manage them.
How to find high-ticket suppliers
Dropshipping can be described as a fulfillment process. Dropshipping products from local suppliers is just as easy as shipping them to an international market.
It is a great idea to work with local suppliers and manufacturers, as it helps you avoid long shipping times and language barriers.
However, it is often easier to find suppliers online.
Always ensure that suppliers have the following:
- Proven track record of providing excellent service (check out testimonials, reviews, etc.).
- Excellent communication (fluent English, fast responses, etc.)
- An impeccable quality control process
Here are three places you can look with that in mind:
Dropshipping’s grand-daddy. Aliexpress offers suppliers for almost every product type you can imagine.
Spocket, a platform that connects users with thousands of suppliers based in the US and Europe for a monthly fee, is called Spocket.
There are many goods to choose from, as well as some brand-name items such the watches I found after doing a quick Google search.
3. Print on Demand Companies
Print-on-demand businesses allow you to upload designs and then sell the products on your website at a markup.
You can find expensive items that you are willing to customize by doing some research.
Printify has a great duvet design that you can easily sell for as high as $100 to the right people.
Print-on-demand products are a great idea if you have a good idea. You can bet that they will make more money than t-shirts of $20.
How to set up a high-end dropshipping store
An in-depth guide has been created to show how you can create a Shopify dropshipping shop.
If you need any help setting up, please refer to the post.
However, there are some special considerations that should be made for dropshipping businesses with high-ticket items.
1. Premium Branding
You must inspire trust in your brand to convince customers to part with their hard-earned cash.
As an example, take high-ticket dropshipping store Warmly Decoration
Their website exudes luxury and professionalism. Their web design is impeccable. They have beautiful images, well-written copy, and a great website design.
These factors all add up to give buyers confidence that they aren’t playing around with rookie clothes.
With that confidence comes the ability to spend more money on your products.
2. Professional Photography
75% online shoppers use product photos to make their purchase decisions.
Eye-catching photos are essential for drop shipping with high-ticket prices.
Many suppliers will provide photos. However, it is best to hire someone to do your own.
This will make your expensive items more appealing. It also puts you ahead of the competition who was too lazy to order samples and arrange a photoshoot.
3. Amazing Customer Service
Have you ever been to a 5-star hotel or fancy restaurant in a luxury setting? Do you remember how great the service was?
This is because people expect everything to be taken care by merchants or service providers when they spend a lot of money.
A customer who is paying $8,000 to buy a commercial oven will not want to wait for three days to get a response from customer service.
Your high-ticket clients deserve more than the ordinary.
You can keep customers coming back to you by being proactive and reaching out to them to let them know about their order.
How to Market Your Dropshipping High-Ticket Store
After you have found the product and established your store, it is time to start thinking about marketing.
Dropshipping experts will tell you that social media marketing is the best way to market dropshipping shops.
Facebook and Instagram ads can be great for impulse purchases of low price, but it’s not easy to set them up for high-ticket items.
You can also advertise to people already searching for your products by using one of these two methods.
1. PPC Shopping Ads
Google Shopping Ads and Microsoft Bing Ads can be a great way to sell high-ticket items. This is because searchers are qualified buyers, meaning they are actively searching for products similar to yours.
Instead of targeting ‘pizza shop owners looking for new pizzas’ on Facebook, Google Ads allows you to filter out low-converting traffic to show your ads to potential customers.
2. SEO for high-ticket dropshipping
Optimizing your store’s search engine optimization is the best option if you don’t have enough money for Google Ads or are looking to invest in long-term strategies.
SEO is short for Search Engine Optimization. It’s optimizing your store so that it ranks organically on Google.
Your store will appear on the first page of search results when someone searches for products related to them.
Optimizing your store’s search engine optimization (SEO) is a complex task. It’s impressive to see Eric, ReConvert CEO, manage to squeeze it all in this 10 minute video.
How to make more profit from your high-ticket store
Selling high-ticket items means you’re going to have a higher cost-per-acquisition.
You might spend $80 to acquire customers instead of $15 on Google ads.
It’s important to maximize your profit from every customer, even if you spend so much.
How do you do this? Thank-you page upsells, cross-sells.
Because they are not disruptive to the buyer’s journey, post-purchase offers work well with high-ticket drop shipping.
This means that you don’t distract or confuse your shopper by offering discounts after they have closed the deal.
You can be creative in how you structure your thank you page offer.
- Cross-sell a lower priced complimentary item. (e.g. To go with an electric scooter, a helmet
- Customers can receive a digital course, e-book or course on how to make the most of their product.
- For $19/mo, add a subscription component like premium support and product insurance.
This video, which was created by Ruth, Stilyo’s other founder shows you how to set up such offers in your Shopify store.
Dropshipping for High-Ticket Stores
Sometimes, examples can help you see what a high-ticket dropshipping business looks like.
These are three of the most high-end stores in order to give you an idea about where to look.
Litfad, a high-quality dropshipping shop that specializes indoor lighting, is beautifully designed.
You can see how the homepage is organized with appealing imagery and product collections.
Phoenix, a high-end dropshipping company (or at least that’s how they started it), sells massage guns.
Their copywriting is amazing and speaks directly to their ideal customers’ pain points.
Get Set Style Metro, a print-on-demand shop that offers a variety of cool designs, is an excellent choice.
Check out their selection of skate deck wall art starting from $200
While their product pages could be improved, it’s not impossible to love their designs.
There you go!
You should now have a better understanding of high-ticket dropshipping.
These are the key takeaways of this article:
- Dropshipping, or high-ticket sales, is an ecommerce business model that allows you to sell more expensive products in your store and have them fulfilled by a third party supplier.
- The most important steps in building a dropshipping business are choosing a quality product and a reliable supplier.
- Do not be afraid to become a B2B vendor – it is easier to sell a $2,000 product directly to a company than to an individual customer
- When building your store, it is important to invest in premium branding, product photography and customer service.
- High-ticket stores can be promoted using SEO strategies and paid search ads.
- Before you dive in headfirst, make sure to familiarize yourself with the pros & cons of high-ticket dropshipping.
Article source: https://www.reconvert.io/blog/high-ticket-dropshipping/