High ticket dropshipping can bring you a ton of money by selling just a few products but, it’s not easy as it sounds.
Dropshipping high ticket items is a business model option that many people want to explore but are afraid of doing. Compared to the most popular low ticket dropshipping, high ticket dropshipping requires one to take more risks and put more effort to get good results. If you’re already dropshipping low ticket products, you have to change your business model and position yourself differently when you want to pivot into dropshipping products with higher price tags.
However, high ticket dropshipping is not for everyone. To know if you have what it takes to succeed in this model, you should understand the basics of high ticket dropshipping and what qualifications you should have to make it work for you.
What is high ticket dropshipping?
High ticket dropshipping is selling dropshipping products at a retail price of $200 or higher. Unlike selling low priced items, you’ll get more money dropshipping expensive products. Even with just a few customers spending big money into your dropshipping store, you can already earn a real profit. It’s a bigger venture than a regular dropshipping store with fancy products and higher profit margin potential. Niches like art, furniture, fine jewelry, and hi-tech electronics are the usual sources of high ticket dropshipping products.
What makes high ticket dropshipping different from a low ticket one?
Contrary to what other people say about high ticket dropshipping working the same way as low ticket dropshipping and they differ only in product prices, three big factors come into play when you sell high priced dropshipping products to your target audience.
Factor 1: No impulse buying
The dropshipping business model thrives on impulse buying. However, shoppers or high ticket items don’t let their emotions get ahold of their wallet. They want to make sure that they’re buying things rationally as it’s a large scale investment for them. They would research to find the product with the best value for their money. Buyers of expensive items will not purchase the first product they see based on their beauty and uniqueness. They would have a set of criteria in their head and they look for a product that meets them all.
Factor 2: Bigger and more established competitors
When it comes to buying high-end products like jewelry, laptops, or furniture, the first store that pops on the mind of shoppers is a popular brand or store that offers these products. Everyone knows and trusts them. If you’re selling similar products that they offer, you’ll have to compete with well-known brands that have a great reputation and have a prominent position on the first page of Google search results.
Factor 3: High expectations
People count on getting more than high-quality products when they buy high ticket items from eCommerce stores. As superior customer support and availability of extra services are usually associated with high-end stores, customers would expect you to provide the same level of quality services in your store. Customers are only ready to part with a huge amount of money if they are 100% confident that the product is worth it.
These three factors are the most important to consider when you want to do high ticket dropshipping. They’re very challenging to face but they’re not impossible to conquer with the right skills and tools.
What are the downsides and benefits of high ticket dropshipping?
There’s no denying the high ticket dropshipping is a more expensive business model to get into. It has some downsides that you have to deal with such as their large sizes, heaviness, expensive prices, and smaller market. Some dropshippers think that with a smaller market, they’ll have much fewer people to buy their products. This causes them to move towards low ticket dropshipping products when they’re starting dropshipping. Only realizing later on that they’re putting the same amount of work like high ticket dropshippers but they’re getting less money dropshipping cheaper products.
Some notable benefits of selling high ticket dropshipping products are:
- Few orders but earn high profits.
- Fewer customers to provide customer service.
- Fewer orders to process mean less time to run your dropshipping business.
- Easier to buy paid traffic for your store.
What makes you ready for high ticket dropshipping?
As I’ve mentioned earlier, high ticket dropshipping is not for everyone. If you don’t have the knowledge and experience to run a dropshipping business, you’re likely to fail big time with this more expensive business venture. Before you start selling posh products, ensure that you have the following qualifications:
- At least 3 years drop shipping experience
You perfectly understand how dropshipping works and have experience in managing a dropshipping store. When you already have the essential skills and experience, you’ll avoid making costly mistakes and have a higher chance of making a profitable high ticket dropshipping business.
- Knows how to build a business brand
You’ll be competing against top players in the posh products industry therefore you should have the experience to build your brand’s identity and reputation. From your store name to website design, you should know already what numerous elements to have and what winning images to use. You should also know how to grow your social media accounts and create ad campaigns that can turn up the best results.
- Have a low refund rate in the last year
If you have low to zero refunds in your dropshipping in the last year, this means that you have a knack in choosing the right dropshipping products and the most reliable dropshipping suppliers. It also proves that you’re an expert in providing superior customer service and ready to take on challenges at a higher level.
- Knows what products to sell online
You should know what expensive, top quality dropshipping products to sell in your store that is not easily available in other online stores and physical stores. You need to give customers reason to buy products from you and not from bigger, more established brands.
- Have an extra fund of at least $500
You might need to buy product samples to check their quality and learn how the suppliers conduct their business. To improve customer’s shopping experience, you might want to speed up product delivery paying the supplier for the ordered items before the customer payment will be credited to your account. Although this is a rare situation, preparing for it is important. And if refunds do happen in your dropshipping store, you’ll have the fund to process it immediately and save yourself the trouble of chargebacks and negative reviews.
High ticket drop shipping requires the same amount of work but more profit. However, you can’t skimp on the preparations by building a website and start selling dropshipping products on the same day. You need to ensure that your dropshipping store is perfect and shoppers can see you as a professional brand in your chosen niche. Research, learn, and master low ticket dropshipping first before you shift to high ticket dropshipping. By doing so, you’ll save yourself from making costly mistakes and be able to compete expertly with reputable, more recognizable brands in selling high-end products.