High ticket dropshipping seems like a dream, right?
Thinking that you’ll only have to sell a few products a month to make a ton of money is a great situation to find yourself in, but it’s not as easy as it sounds.
If you want to sell high-ticket items, you need to change your business model entirely and position yourself much differently than you do with low-ticket dropshipping.
By the end of this article, you’ll understand the basics of high-ticket dropshipping, and you’ll know how to source amazing products so you can start making some money.
Everyone has a different mindset on what labels a product as “high-ticket.”
Many people say that anything over $200 per unit is high ticket. There is no limit to what you can sell, and you can choose products that range from $200 up to $5,000.
Here’s an example. Phone cases are a popular dropshipping product, but they are incredibly low-ticket because the purchase price is low. On the flip side, a large camping tent is a high-ticket item because the purchase price is high.
You can probably already start to see the benefits of high-ticket dropshipping.
Look at it this way.
High-ticket vs. low-ticket is the difference between Walmart and HomeGoods. Walmart sells everything, and their products are generally cheaper quality and less desirable. The main bonus of Walmart is they sell products at a much higher volume than HomeGoods, so they make up the difference.
While Walmart might make more money than HomeGoods because of its volume, it’s also much more work to manage high volume sales.
Let’s compare two completely equal stores that make the same amount of money.
One store sells 200, five-dollar items per day. The other store sells ten, $100 items per day. Both stores make $1000 a day, but which store is harder to handle?
The 200 units per day, right?
The store would need more employees to manage the customers, more customer service reps, they’d have much higher returns, they’d have to order more frequently, and they’d likely have a much dirtier store because of the volume of people moving in and out.
Long story short, high-ticket dropshipping is a more sustainable business model.
We’ve talked about it a little but let’s dive into more detail about the comparison between the two.
If we look at the previous example of two stores, let’s pull it into a dropshipping model now.
You have to fulfill orders online. Most dropshippers start out doing Aliexpress dropshipping. Think of how hard it would be to make $5000 a month from five-dollar products.
You would have to fulfill a lot of orders to get to that point, which would require a lot of work, and you might even need to hire someone to help you.
Not to mention returns and customer inquiries. It’s a lot of work to manage that many units in and out.
Now, imagine if you sold a $500 product, you would only need to sell ten units to make the same amount in a month. Do you think you could fulfill ten units a month by yourself?
I think we all know the answer to that question.
[bctt tweet=”Choosing high-ticket dropshipping allows you to live that “free” life you’ve always dreamed of. Instead of being glued to your computer continually fulfilling orders all day, you’ll have the time to travel, relax, spend time with family, and do whatever you want.” via=”no”]
Do yourself a favor and look towards high-ticket products.
You might be thinking, why doesn’t everyone deploy this model?
If it were so easy and profitable, everyone would do it, right?
The truth is, it might seem easier, but it’s much harder to sell high-ticket dropshipping products. The most successful dropshipping brands have incredible stores and top tier reputations, and you need to do the same.
When you’re selling an item that’s $500, there is a lot more thought that goes into each purchase. Your customers are simply going to swing by and pick up an $800 boat without first consulting their family, looking at their finances, and ensuring that you’re a legit store.
These factors mean you need to stay on top of your game at all times. You need to:
These are only some of the things you need to think about when starting a high-ticket dropshipping store.
First, if your store doesn’t scream, “high ticket” than your customers will never trust you. If they’re spending $500, they’ll expect live customer service, professional-looking logos and graphics, and plenty of testimonials or reviews.
Another point worth diving into in more detail is the financial backup. You never know what might happen and if you’re selling high-ticket items, you need to have some money for emergencies.
What happens if someone receives an item that is broken or defective, and they demand a refund? You might not have had to pay for the product upfront, but now you’ll have to front them the money until you can get your money back on the item you purchased.
If you’re dealing with Aliexpress, it can take quite a while to get your money back, and the customer won’t want to hear any excuses, they’ll want their money.
All dropshipping starts with sourcing your items. The best dropshipping brand names have excellent sourcing procedures, and they know exactly what they’re looking for when they scour for new products.
As a beginner, you might be tempted to go on Aliexpress and choose the first product that captures your attention. This strategy will leave you feeling disappointed and defeated. Here are a few ways to find amazingly popular high-ticket dropshipping products on Aliexpress.
The first thing you want to do is get selective about what products you search. There are ways to filter your searches on Aliexpress by the supplier rating; you want to do that. You should only choose the best suppliers to dropship products.
Truthfully, shipping times are a little less relevant when dealing with high-ticket items because people expect them to take longer. I would understand why a supplier would not be able to ship a boat as fast as a cat watch; it makes sense.
That said, it doesn’t mean you can take two months to get the product to the customer. They’ll request a refund, and you’ll find yourself with a disgruntled customer right off the bat.
Epacket is the way to go when dropshipping on Aliexpress, this shipping method generally takes around two weeks, and most customers are willing to wait as long as you are transparent and honest about your shipping times upfront.
Here’s a great trick; head over to Facebook and in the search bar, type one of the following phrases:
…or something similar to that. Once you do it a few times, you’ll find better examples to match what you’re looking for.
When you type those phrases into Facebook search, you’ll find a variety of ads that are running for a specific product. You can then gauge how popular the product is based on the amount of engagement.
If you see people commenting about how they love it, and it has a ton of shares; the chances are that might be a good product to choose.
Another significant step to running a high-ticket business model is your store.
You can’t simply throw up the generic store templates and logos and expect people to spend $1,000 on your site. You need to have a real brand to build trust in the customers.
As I said, they will spend a lot more time thinking about this purchase because of how expensive it is; you don’t want to give them any reason to bounce from your store.
Here are some of the steps you want to take:
If you’ve ever researched dropshipping best practices, you’ll understand most of these criteria, but I want to focus heavily on the last one.
Customer service is the difference between sale and fail in high-ticket dropshipping. Make sure you respond immediately to inquiries and show your customers that you’re a professional.
By this point, you should see the benefits of high-ticket dropshipping. The business model requires the same amount of work but with more profit or way less work with the same profit.
It’s a win-win.
The primary challenge is that you can’t skimp on your preparations. You can’t expect to throw up a store and start making sales the same day. You need to make sure you’re store is perfect and that customers see you as a professional brand in the niche they are shopping.
If you can follow all the tips and tricks in this article, you’ll be on your way to more profits and more relaxing by the pool!