Dropshipping is the new hip venture that almost everyone wants to sample. It requires little investment and promises high profits without the commitment of a 9-5 workday.
Like all good ideas, dropshipping may soon become a highly competitive sector. Unless of course, you decided to branch out into the more exclusive option known as high ticket dropshipping.
Curious? Settle in then and let us demystify high ticket dropshipping and how you can get started on it.
Read on.
What Is High Ticket Dropshipping?
High ticket dropshipping is a type of dropshipping where you focus on high-value products.
There is no consensus on what price point qualifies a product as ‘high-value’. However, compared to the average prices of other common dropshipping products, items worth above $200 or thereabouts would meet the mark.
It is important to distinguish that high ticket dropshipping is not about selling products at high prices. Rather, that the product itself is of high value.
Some examples of profitable high ticket dropshipping products include:
- Electronics; mobile phones, gaming consoles, laptops
- Furniture
- Exclusive fashion items
- Gym equipment
What Are the Benefits of High Ticket Dropshipping?
At first impression, selling high-value items sounds nice and glamorous but is it profitable? Is it any better than ordinary dropshipping?
In a nutshell, the answer to these questions is yes. High ticket dropshipping presents benefits that typical dropshipping may not. They include:
Higher Profit Margins
Given their higher value, high ticket dropshipping products offer a higher profit margin.
For example, if you sell a set of furniture for $1500 at a 20% commission, you earn $300. Alternatively, if you will be selling at a mark-up, you get to set a profitable price for your store (we discuss more on pricing below).
Less Competition
Over the years, dropshipping has become quite popular and drawn the interest of many entrepreneurs. As a result, competition is quite stiff in most markets and niches. It is, therefore, important to find a way to differentiate your dropshipping business.
High ticket dropshipping involves a higher risk, more start-up costs, and targets a more limited customer base. Consequently, it attracts fewer entrepreneurs and there is less competition. It is also easier to find strategies to set your business apart in such conditions.
Fewer Customer Support Requests
High ticket dropshipping products attract a smaller number of potential buyers. That sounds bad for business, doesn’t it? Not necessarily.
While the customers may be fewer, each sale brings in high profits and so it evens out.
You can make $1000 from 5 sales in high ticket dropshipping whereas in standard dropshipping you would need a much higher number of sales because the profit margins are small.
A lower volume of customers is an advantage because it means you will have fewer orders, inquiries, or requests to attend to. Better still, it means you can give each customer your undivided attention and deliver a much higher level of service.
What Are the Downsides of High Ticket Dropshipping?
Rosy as it may seem, high ticket dropshipping does come with its fair share of downsides. Here are some challenges that you should anticipate as you venture into this niche.
Higher Start-Up Costs
Dropshipping is lauded for its low start-up costs. However, if you would like to catch the attention of high-budget buyers, you have to go all out. You may have to invest in:
- Paid-access platforms to find premium suppliers
- A tastefully designed online store
- Research tools and other helpful dropshipping apps
- Targeted marketing
At the end of the day, getting all these bells and whistles in place will cost you more than setting up a run-of-the-mill dropship store. This type of dropshipping may, therefore, not be easily accessible if you are working on a slim budget.
You Need to Have a Firm Understanding of Dropshipping
Setting up a high ticket dropshipping store, finding the right suppliers, and target marketing would be tough if you are new in the business. Plus, given the costs involved, learning on the job may turn out to be a very costly affair.
All factors considered, if you are new in the business, it would be best to try high ticket dropshipping after you have learned the ropes.
Better Long-term Stability
The products sold in low-level dropshipping have a high turnover rate. Trends keep changing and you have to keep changing your store listings accordingly to stay competitive. This dynamic can be challenging and offers little stability.
High-end products, on the other hand, stay in trend for much longer. For instance, it takes about a year or so for mobile phone models to be upgraded. Classic furniture or vintage handbags would also remain en vogue for quite a while.
Consequently, high ticket dropshipping is the more sustainable option in the long run. This does not mean that you will not have to keep up with trends but that the rate of their turnover would be lower.
How to Find the Right Niche of High Ticket Dropshipping Products
Finding the right high ticket dropshipping niche plays a major role in how successful your business will be. Consider factors such as:
- The product needs of your target market
- Their product style and design preferences (Sleek and modern? Vintage?)
- The brand preferences of your buyers
You can get reliable feedback and data on these and other factors through:
Research
Research takes the guesswork out of your entire process and gives you more reliable information.
There are many ways to go about it but using a dropshipping product research tool like Ecomhunt or Sale Source is a safe bet. Such apps are optimized to give you well-structured data that is easy to interpret and apply in your decision-making.
Additionally, some research tools could give you data on competitors in the dropshipping niche that you are considering. If competition is too stiff, you could explore other frontiers. If not, you will have an idea of what to do to distinguish your dropship store.
Follow Your Passion
If your research data supports it, it may work in your favor to consider a product niche that you understand or are passionate about.
When you have a firm grasp of a product, your passion becomes evident in the marketing content you put out. This would naturally appeal to discerning customers.
Further, you would be able to competently guide customers that reach out to you with inquiries. Such small benefits greatly improve customers’ buying experience, build customer loyalty, and could earn you profitable referrals.
How to Find High Ticket Dropshipping Suppliers
So, now that you have found the right niche and high ticket dropshipping products, how do you find the right dropshipping suppliers?
Here are some tips to help you choose the right supplier for your needs.
Prioritize Reliability
When it comes to high ticket dropshipping, it is extremely important that you engage suppliers that you can trust.
It would be tragic to pay a high price for an item and the supplier fails to fulfill the order.
On one hand, you would potentially have lost a significant amount of money. On the other, you would have a disappointed customer who would undoubtedly expect a refund.
The misery does not end there, in this age of viral social media, one bad review is too many. All it takes is one influential tweet and your business may never find its legs again.
All these risks considered, take time to vet every potential supplier and their reputation. Where possible, have contracts in place for your own insurance. Working with original product manufacturers could equally be a safer choice.
Have High-Quality Standards
When customers pay premium prices for an item, they expect high-quality products. By any standard, this is a fair expectation that you should aspire and strive to meet.
As you compare suppliers, pay attention to the quality of their products. Aim for neat finishes, quality materials, and great designs. Consider durability and performance too; the products should not just be great at purchase, they should serve users well.
‘How do I ascertain quality?’, you may ask.
There are a couple of ways. Depending on the proximity of your suppliers, you could:
- Order samples of their products
- Visit a local showroom to see and test the products
- Go through other users’ reviews of the suppliers’ products
One tell-tale indicator of a supplier that stands behind their product is the provision of a warranty. This would also give buyers some confidence as they consider buying the product.
Fair Pricing
If you will be selling high ticket products based on a mark-up instead of a commission, aim for suppliers that offer fair pricing. Friendly prices allow you to set a reasonable mark-up and still attract customers.
On the flip side, if the pricing is too high, it would be hard to set a mark-up price that most buyers find reasonable. In such a case, it would be best to find out if your supplier would be willing to work with you on a commission basis.
Shipping Capabilities
Shipping high-value products present two main risks; the risk of damage and theft.
If customers receive damaged goods, they would not only be disappointed but would likely seek a return or a replacement. In the worst-case scenario where the item is lost or stolen you may have to offer them a refund.
To avoid such incidents, it is imperative to partner with a supplier that uses safe and reliable shipping methods. Renowned registered couriers, for example, would be a reassuring option.
Additionally, an ideal supplier should offer worldwide fulfillment. The upside to this is that you can dropship within a larger radius and enjoy a wider customer base.
Is It Possible to Find High Ticket Dropshipping Suppliers on AliExpress?
Yes, you can. The trick is to use filters to refine your search such that it only brings up results of high ticket products.
Take for example, that you are looking for exercise bicycles.
- Search ‘Exercise bicycles’
- Select the price filter and set it to your preferred price range e.g $200
- Filter the results you receive further based on supplier ratings; 4-5 stars is a good place to start
These steps will have whittled down your results to a more manageable number that you can examine more keenly. Given the rampant reports of AliExpress scams, try and choose suppliers that have good reviews and have completed high numbers of orders.
How to Set Up a High Ticket Dropshipping Store
So far, we have covered everything you need to know to get started on the high ticket dropshipping journey. With that in mind, let us delve into what it takes to set up a successful high ticket dropshipping store.
Choose the Right Theme and Layout
The landing page of your online store introduces your brand to customers. What kind of first impression would you like to make?
High ticket shoppers are discerning and have refined tastes. Subsequently, it is advisable to select a theme that is classy and appealing. Avoid clutter and aim for a font that is easy to read.
Regarding your layout, try and categorize every item in a way that is easy to find. When customers are done shopping, they should just as easily be able to check out. Avoid unnecessary pop-ups and other distracting prompts before check-out to prevent cart abandonment.
Proper Branding
Branding is your store’s identity. It is represented by your brand name and your logo. A good brand name should be:
- Unique- to stands out and set your brand apart from competitors
- Memorable- when customers can identify and remember your brand, they are likely to get curious and check it out or refer others
- Relevant- if at all possible, your brand name should give a hint of what you have to offer or what you would like customers to associate your brand with
A good logo is just as important because it is the symbol that formally represents your brand. If your budget allows, consider having it professionally done. If not, take advantage of platforms like Shopify that offer easy-to-use design tools.
Tasteful Professional Photography
The photographs in your online store are a market tool unto themselves. Instead of using generic supplier pictures, use tasteful high-resolution photographs that make buyers covet the product you are selling.
Offer customers different product angles as well. This gives them a better appraisal of the products and shows you have nothing to hide as most scammers do. Big Bud Press, one of the most successful Shopify clothing stores, incorporates this quite well.
Outstanding Product Descriptions
With tasteful photographs, customers can quickly discern that you are offering high-quality merchandise. However, what can your products do for them? What about their features justifies paying a premium price?
Herein lies the importance of a charming and informative product description. You can jot down features in a list form but try to tie it all together in a brief description that makes them relatable to the customer.
Convenient Customer Support Channels
Choose customer support channels that are easy for customers to access such as email or chat. Also, consider support channels that would be easy for you to respond to promptly.
Good customer support builds customer loyalty to your brand and is great for your reputation.
Suitable Payment Options
Make an effort to provide multiple payment options to cater to the different needs of your customers. Nevertheless, you should ensure that every option you provide is secure and allows for high-value transactions.
For the most part, payment security is guaranteed by your e-commerce platform. So, remember to factor that in as you compare dropshipping platform options.
On payment limits, bank payments may not be an issue. E-wallets and other digital payment services, however, may flag your account when you receive certain sums of payments. It may be best to make a formal inquiry with them on this to avoid inconveniences.
How to Market a High Ticket Dropshipping Store
If you had to sell a bar of gold, where would you market it? At your local jewelry store or at the more established one in the city?
The latter, right? This isn’t to say that you wouldn’t find buyers at the local jewelry store. Rather, that the more established jeweler in the city may give you better access to buyers that would buy your gold for the right price.
The above approach is commonly known as targeted marketing and would be ideal for high ticket dropshipping. It would mean that you would choose marketing avenues that would give you access to high-end shoppers.
Such avenues include:
Google Ads
The upside to Google Ads is that it showcases your ads to users whose searches match your niche. Take for example, that a user enters a search request for high-quality exercise bikes. If you sell such bikes, your ad will likely be among those displayed.
The challenge, however, is that for your ad to be displayed it needs to:
- Have a keyword that is relevant to that ad group
- Be relevant to the user’s search
- Be relevant to the landing page it redirects to
- Preferably, have a history of a high click-through rate
If you can meet these requirements, Google Ads would serve your business well. The best part? It is a comparatively affordable but effective form of marketing.
Instagram is an application that mainly thrives on glamour and showcasing different lifestyles. Therefore, marketing high-end products fits right into the overall concept of the platform.
Other advantages of Instagram advertising include:
- Quality photographs can be used to pique the curiosity of potential buyers
- Instagram ads are targeted towards a suitable niche audience
- Instagram ads have a relatively high rate of conversion
Final Word
If you are an experienced dropshipper, high ticket dropshipping would be a great new frontier to explore. It offers numerous opportunities for growth and handsome profits go along with them.
That said, remember to:
- Invest in research to find a suitable high ticket product niche
- Choose reliable dropshipping suppliers that offer high-quality products
- Negotiate fair prices or a reasonable commission
- Create an appealing online dropshipping store
- Use targeted marketing solutions
When it comes to reliability, we spare no expense in fulfilling the needs of our NicheDropshipping customers. We also source products from reputable manufacturers and negotiate fair affordable prices on your behalf.
Contact us today and let us help you materialize your high ticket dropshipping store.
