Find out exactly how to do high ticket dropshipping in 2020, find the best high ticket dropshipping niches and products to skyrocket store profit
Stop and think for a second what it would be like if you could earn a living by making only 5 sales per month?
And no, we’re not talking about livin’ la-vida-broke-a, we’re talking about making serious profits in the region of $10-20k per month?
You might say we’re crazy.
But we’d just say that means you haven’t heard of high-ticket dropshipping.
High ticket dropshipping is an awesome business model that involves selling higher-priced items for a juicier profit margin.
And no, you don't need a high ticket dropshipping course to teach you...
If you’ve been thinking that traditional dropshipping is too saturated and are looking to take your eCommerce game to the next level, then this article is for you.
Sounds good? Then let’s jump in and learn exactly how to do high ticket dropshipping in 2020!
There isn’t an industry-standard definition of what high ticket dropshipping is.
Some folks will tell you it’s selling items for over $200, while others claim it’s only high ticket if you’re selling items priced over $2,000.
In truth, it doesn’t matter exactly how much you're selling items for - there’s no official cut-off point where low-ticket dropshipping becomes high-ticket dropshipping.
But it’s about the idea of focusing on selling more expensive products as opposed to cheaper ones.
Typically, high ticket products have beefier profit margins. For example, If you’re selling a camping tent for $300 and your net margin is 30%, you’ll make $90 off each sale.
Compare that to low ticket products like phone cases. If you sell a phone case for $15 and your net margin is 30% you’ll only be pocketing $4.50 off each sale.
On the flip side though, high ticket products carry greater risk and usually require a slightly more advanced marketing approach.
You’re probably wondering why selling higher-priced items might be a good idea. So let’s jump into what this business model has going for it:
Traditional dropshipping often involves hopping onto the latest trending product, making bank and then moving onto the next product as the product becomes saturated.
High ticket dropshipping typically involves selling less trendy products (think commercial restaurant equipment or electric bikes).
As a result, when dropshipping high ticket items your business will face less competition and remain less affected by trends which increases your chances of staying in business long-term.
If you’ve got fewer customers, you’ll have fewer support requests. This helps to free up valuable time that you can spend on other aspects of your business.
Not only does this help you save money, it means you can allocate more resources, care and attention to your high paying customers.
More profit is the grandaddy benefit of high ticket dropshipping. Larger profit margins provide a solid platform from which to launch your growing business.
A high profit margin means more money left for you to invest back into the business at the end of the day.
Like any business model, it’s not all rainbows and fairy tales. Here’s what high ticket dropshipping has going against it:
While the start-up costs will still be low in comparison to many businesses you’ll need more cash reserves than low ticket dropshipping.
Because your products will be more expensive, you’ll need to invest more dollars in both advertising and setting up your store (product photography, copywriting, etc.) to attract higher price point buyers.
High ticket dropshipping isn’t impossible if you’re new to eCommerce, but seasoned digital marketers with experience in advertising, sales funnels and branding stand a much better chance of success.
People don’t just impulse buy an $800 inflatable fishing boat like they would a $10 fidget spinner, so experience in guiding customers through the buyer’s journey is extremely useful.
So, you’ve decided that high ticket dropshipping is for you. That’s great - let’s dive into how the best way to source high ticket products that you can sell.
When somebody is handing over a big chunk of their hard-earned cash, you need to make sure that they’re getting value for money. Order and inspect your chosen product before opening your store to make sure it’s up to scratch.
When dropping $200+ on a product, the last thing a customer expects is to have to wait 25 days for their order to arrive.
The bigger profit margin you’re making on the sale should allow you to include a premium shipping carrier like DHL or FedEx so that the customer gets their product as quickly as possible with a functioning tracking code.
More expensive products carry greater financial risk. If a product goes missing in transit or arrives damaged you can bet your bottom dollar that your customer is going to initiate a chargeback. And then you’ll be on the hook for the refund and the product cost and that’s not a good day at the office.
That’s why you need a reliable supplier with great communication and a reasonable refund policy who won’t vanish off the face of the earth if things go pear-shaped.
On Alixpress you can easily browse high-ticket items. Here’s what to do:
And voila, you should now have a solid collection of high-ticket products that you can shortlist for further research using tools like Google trends, eBay WatchCount and most importantly SaleSource.
Once you’ve found a product you’d like to test, head over to SalesSource to import the images & reviews with a single-click into your Shopify store.
This can easily be done with SaleSource's Shopify Chrome Extension.
Before you jump into selling a product, it’s vital to check out your competition.
Use a tool like Salesource to instantly see what other stores are currently selling your product. Check out what they’re doing and come up with a plan for how you're going to beat them.
You’ll get valuable sales data and gain a better understanding of whether or not moving forward with the product is viable or not.
Doing proper shopify product research on a high ticket product is extremely important to success in this niche.
Here are some profitable niches to explore if you don’t already have one in mind:
Setting up a high ticket dropshipping store takes more work than a run-of-the-mill dropshipping store. Here are the must-haves for every high ticket store:
A high-ticket store needs to have a strong brand identity that resonates with its potential customers. Creating an appropriate brand identity is beyond the scope of this post, but at the very minimum you’ll need
Take a look at how the folks at Warmly Decor have branded their dropshipping store to give buyers a sense of luxury, style, and elegance.
Warmly Decor have been highly successful in the high-ticket dropshipping niche, generating a whopping $548,545-$1,097,090 per month (estimated).
As you can see, by using a dropshipping product research tool like SaleSource, you can find best selling high ticket dropshipping products uploaded by any competitor.
Product images play a serious role in whether or not a buyer will make a purchase on your store and quality images become even more important as the selling price rises.
Often times a supplier may provide decent images. But if you really want to stand out from your competitors and win more customers then professional images are a must.
In general, the more money something costs, the longer people will need to consider making a purchase. In high ticket dropshipping, you’ll need to provide site visitors with all of the information they need to make a purchase.
Use language that appeals to your prospect’s emotions to influence a purchase and emphasize the benefits over features. Check out how Pheonix use good copywriting to massively increase conversions on their high ticket dropshipping store.
When someone goes to a high-end restaurant or hotel, you’ll always see the staff going above and beyond to make sure their big-spending guest enjoys themselves.
In the same way, when someone drops a lot of money on your product, they’re going to expect a level of customer service that’s a cut above the rest.
While you’ll have fewer inquiries, you’ll need to make sure that you’re always providing the highest level of service with fast responses, an in-depth FAQ section and value-adding content such as product tutorials.
Now we’re all set up, we’re ready to start driving traffic and sales to our store.
Usually, traditional dropshippers will tell you that targeting potential customers through social media is the best way to get sales.
But for high-ticket dropshipping Google Ads are your biggest friend.
That’s because when selling higher-priced goods Google Ads allows you to capture high-intent searchers, i.e. people who are already looking for a product just like yours.
A Google search or shopping ad allows you to appear in the search results after a potential customer has searched for key terms that are related to your product.
Google ads have the advantage of looking native to the google search platform and so effectively soak up a lot of high-quality search traffic for your high ticket dropshipping store.
Google Ads work on a bidding system where you say how much you’re prepared to pay for clicks to your site for a certain search term. Google will display ads to potential customers based on your bid and relevancy of your business.
Here’s a quick overview of what’s involved in creating your first Google Ad:
Typically Google Ads have a less steep learning curve than Facebook ads, however, that doesn’t make them a walk in the park.
Just as with Facebook ads it’s important to continuously test, experiment and optimize your ads to get the best results.
If you’d like to learn more about running Google ads, they offer free courses for advertisers who’re looking to get the most out of their platform. You can also find out how to drive traffic to your shopify store here.
So there you have it!
By now, you should have a much deeper understanding of what high ticket dropshipping is and what’s involved in making it successful.
Let’s quickly recap over what we’ve learned:
And now over to you! Let us know in the comments below your ideas about starting a high ticket dropshipping store - what products do you think will work well and how will you scale it to the moon?