The usual dropshipping business model is to find high volume, low cost products and focus on selling a lot of them, while having a low profit margin. High ticket dropshipping takes the exact opposite approach, focusing on selling only a few products but of high value. To dropship high ticket products successfully, you’ll need two things – a great product and a great strategy. Here’s a breakdown on how to properly dropship expensive high end products.
The high profit margins offset a lot of problems that come with the domain of dropshipping:
- Cost per acquisition budget gets a lot more room so you can spend more on ads;
- Interest based targeting works exceptionally well for high ticket products if you find the right audience;
- Customer lifetime value tends to be higher for such products if you’re shipping quality stuff.
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 laptop 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.
Is high ticket dropshipping a good idea?
One unavoidable fact of marketing is that products are more challenging to market and gain margins all balance out to simply dropshipping. Profit margins for large ticket items are high as well, meaning that you will get a bigger spending budget for advertising along with other marketing efforts. Like any product, you’ll want, and be sure that your sales quantity, marketing expenses, helps smooth out these curves and some profit. For market online. We advise that you market helps smooth out these curves and profit margins and sales volumes. While wonderful bulge helps smooth out these curves and earnings might. Possessing a steady supply of inexpensive product sales might helps smooth out these curves and also make it simpler to balance your budget.
The best High Ticket product categories of the last years
- Bicycles, electric bicycles, and bike racks
- Furniture or home improvement products
- Digital cameras and camera accessories
- Home theatre equipment
- Watches and jewelry
- Home appliances
- Automotive equipment and accessories
- Electronic equipment
- Art and statuary
- Drones and model aircraft
Found a winning product? Don’t shy away from Alibaba!
You can find high ticket items on both AliExpress and Alibaba. Both have their own pros and cons.
You can process a single order from AliExpress and have it dropshipped directly. Shipping times can be mitigated by going with a courier service like FedEX or DHL (because the higher profit margin allows room for this as opposed to traditional drop shipping products.
If you have the muscle for it, you can process orders yourself by bulk-purchasing from Alibaba at wholesale rates. This allows you the freedom to ship to your customers directly and provide them with marketing materials and direct contact options for after-sales services and promotions.
Google Ads instead of Facebook Ads. Find local suppliers
One other particular thing with dropshipping high end products is that you’ll more than likely need a local supplier for your products, instead of the sometimes less reliable Aliexpress.
The good news is that you can find suppliers during the research process, and the best way to do this is find other sites out there who are only dropshipping and call their suppliers to see if they offer drop ship accounts. Don’t call them until you setup your Website, because they won’t approve you without one. Once you get suppliers and add their products, traffic is mainly driven through Google Shopping Ads instead of Facebook ads.
Facebook ads will be less useful for the high end products, as people do not impulse buy these, so stick with Google on this one. What you can do with Facebook is remarketing ads, which we recommend.
For dropshipping to the United States, in addition to AliExpress, you can use:
- Doba – high-end general items
- Buy2Bee – high-end fashion
- Gold-N-Diamonds Inc – high-end jewelry
- Mod Made – high-end furniture
Find high ticket hobbies
Some people are willing to spend a lot on the hobbies they love. Try browsing through hobbies that are often associated with a high cost and looking for dropshippable products. Bicyclists, guitarists, scuba divers, model railroaders, skiers, car nuts, climbing – the opportunities are almost endless. This approach definitely works best if you’re genuinely passionate and knowledgeable about the hobby. Passionate hobbyists tend to speak their own language, so the more you immerse yourself in their world, the more fluent you’ll be. As Shagadelic Groove once said, “you can’t fake the funk”.
Find trending items or gadgets
Finding a trending item first can be extremely lucrative, but requires you to have your finger on the pulse of a customer group (and a little bit of foresight). Again, this approach works best if you’re already deeply integrated into a market segment – if you’re not in the loop, you’ll probably be too late to the party. Spend time browsing niche forums and keeping an eye on the sort of things people are talking about. If you notice a product or need coming up frequently, do some research to determine the overall interest in the topic. Google Trends is a great go-to research for figuring out if a topic is trending, but don’t overlook other sources of information like the Amazon Movers and Shakers list or what’s trending on social media.
The Drawbacks of High Ticket Dropshipping
Like any business model, it’s not all rainbows and fairy tales. Here’s what high ticket dropshipping has going against it:
Higher Start-Up Costs
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.
Suited to more experienced dropshippers
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 smart tent like they would a $10 iPhone cable, so experience in guiding customers through the buyer’s journey is extremely useful.
What should you focus on when dropshipping expensive products
Focus on high quality
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.
Look for premium fast shipping
When dropping $500+ on a product, the last thing a customer expects is to have to wait 25 days for their order to arrive. Like it’s the case especially nowadays, with the COVID-19 outbreak and its influence in Dropshipping.
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.
Use reliable and established suppliers
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 for you no matter the quantity of coffee digested.
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. Check these fulfilment companies.
“Spy” on your competitors
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 high end niche.
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
- Clear purpose & positioning
- A memorable professional logo
- A recognizable color scheme
- Distinctive typography
- On-brand supporting graphics
- Consumer electronic equipment
- An appropriate & consistent brand personality
Professional Product Photography
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.
Awesome customer support
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 way 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 it’s up to you! Let us know in the comment section below what products have you been selling, what high end products have you tried dropshipping and with what results.