So, how’s your dropshipping business going? Are you still playing Ping-Pong between dropshipping low-ticket products and high-ticket items?
If you plan to dropship products, Shopify is the best platform.
In this blog, we’ll be giving the best tips that will help you decide why high-ticket dropshipping is the better choice in dropshipping. Plus, we’ll give you our secret in getting a dropship supplier that offers a high margin, so read on.
The standard dropshipping business typically revolves around selling high volume and low-cost products with the goal of selling a lot of them. The problem with this kind of strategy is that you get a low-profit margin, which means a more extended period for returns. This is not to mention that low-ticket products usually come with greater risk since a decline in sales can instantly obliterate your thin profits, which may eventually lead to net loss.
So, our recommendation is, shift to the better version of dropshipping – high-ticket dropshipping.
What is High Ticket Dropshipping?
High ticket dropshipping is all about selling expensive items or what we call high-ticket items. On average, these are ticket products that cost $1000 and up. With high-ticket items, you get more significant profit margins and better flexibility in pricing as opposed to low-ticket items where you are constricted within a very tight profit margin to maintain the marketability of the products. Choosing between the two will significantly define the scalability of your business in the long-run. And, you can do this for your Shopify store or whatever platform you’re using.
High Ticket vs. Low Ticket Dropshipping
In terms of product comparison, low-ticket dropshipping prides itself on products that sell like hotcakes. This is true because low-ticket items are cheaply priced goods, making them affordable for almost everyone. On the contrary, with high ticket drop shipping, you get to enjoy a steady stream of sales rather than bulk sales.
The key to winning in high-ticket dropshipping is to sell a profitable niche and partner it with a great marketing strategy. Your product marketability in high-ticket drop shipping will significantly depend on your sales and marketing strategy. Once you got it – you can expect to get a steady inflow of new and repeating customers. Meanwhile, with low-ticket dropshipping, all your marketing efforts will be pointless if there’s some other brand that sells at a lower price with the same product. Of course, the battle with low-ticket items is between pricing. Hence, the lower the price is, the better. The problem here is, you will have to sacrifice further your thin profit margin to thrive.
Another good thing about selling high-ticket items is that people are willing and capable to buy your items, so they won’t just look at the price point but the overall value. Thus, it doesn’t take much effort in selling since once you get their attention through effective campaigns, it will not take long before they will shop and check out. Plus, competition in high-ticket dropshipping is not as tight as that of low-ticket dropshipping. Meaning, you can still solidify your presence in your chosen niche and enjoy maximum visibility towards your target market.
Essentially, by selling high-ticket products, you can enjoy greater profitability and faster returns as opposed to dropshipping low-ticket products, which come with minimal profit margin and greater risk.
To give you a quick overview, here are examples of high-ticket and low-ticket products:
- Phone cases
- Bike accessories
- Cheap Clothing
- Bluetooth speakers
- Kitchen tools
- Air Humidifiers
- Electric Fireplaces
- Kitchen Islands
- Espresso Machine
- Standing Desks
- Gun Safes
- Automotive equipment
- Massage Chairs
You’ll get to know more niches as we go on.
The Secret to Winning With High-Ticket Dropshipping
Low-ticket dropship businesses thrive in selling impulse goods. These are products that consumers won’t even think twice before buying. The key here is to make sure that you offer exactly the items that your target customers want. These are usually the kind of products that they won’t hesitate to buy in an instant. It’s important to note however that impulse goods only work effectively in low-ticket dropshipping since almost anyone can afford it.
Maximize Facebook ads
To win in high-ticket dropshipping, your marketing strategy must be on point. This of course includes launching ads like Facebook ads. When you craft your Facebook ads carefully, you’ll discover that your sales will incredibly improve. Many high-ticket drop shippers do this practice so you can be sure that it really works. Plus, what better way to promote your brand than with the biggest social media platform.
Benefits of High-Ticket Dropshipping
Since high-ticket items are expensive, you also get to enjoy higher margins. Just based on my previous example on a surfboard and cellphone case, you can already see the wide gap between high-ticket and low-ticket dropshipping. With low-ticket dropshipping, you don’t have much room to adjust your pricing since you only get a small margin with every sale unlike with high-ticket dropshipping that you even have an allowance in case you want to launch discount campaigns – while still maintaining profitability.
Low Overhead Cost and Flexibility
With high-ticket dropshipping, you don’t need to manage a warehouse or onboard as many staff as that of a brick and mortar store. What this means is that you can sell items instantly without hiring anyone to start with and without setting up a space to be your stockroom / warehouse. It practically works as if you’re selling an invisible item.
Yes, we all know that managing your business already comes with a certain liberty to control your time. However, does your business confine you to a certain geographic location that you cannot leave your post? If yes, then it’s probably time to shift to dropshipping. High-ticket dropshipping allows you to manage your store from anywhere in the world while still generating massive sales.
Lower Volume of Customer Support
Since you’re selling expensive products, of course, you only deal with a certain number of customers as opposed to that of standard dropshipping, wherein you deal with numerous customers every day. The benefit here is that you get to attend to your customer concerns 100% unlike in standard dropshipping business wherein they tend to overlook the messages of some customers, which results in the latter getting frustrated.
How Does High-Ticket Dropshipping work?
High-Ticket Dropshipping works just like any dropshipping business. The main difference lies in the kinds of products that you’ll sell. However, there are several things that you need to take note of to ensure the success of your dropshipping business.
For one, selecting the perfect niche is a must since it will significantly define your business’s success. Another is choosing the right supplier to work with. The right supplier will be your enabler. Enabler since in dropshipping, your lifeline depends on your supplier. Your supplier must deliver and meet your customers’ expectations; otherwise, you will experience a backlash from frustrated customers.
Qualities of a Reliable Dropship Supplier
Successful brands have the best customer service. By now, you should already know that having an excellent product doesn’t automatically make your brand successful. This applies in dropshipping as well, especially to your supplier. Since dropshipping is a fulfillment kind of business, you and your customers will rely heavily on your supplier. Thus, your supplier needs to be reliable at all times. To gauge this, your supplier must have the following:
Expert, Friendly and Responsive Support Staff
When a customer asks about product specifics, and you happen not to know the answer, you’d want to have an instant back-up. Here’s where the expert support of your supplier comes in. Plus, you only want to work with those who know what they are doing and those who can be easy to work with. You don’t want to stress yourself by getting a supplier that takes years to respond.
Fast Order Process
In the dropshipping business, you’ll be working with suppliers most of the time to manage and process orders. A supplier with a bureaucratic and manual ordering process will prolong your delivery period, so you want to avoid these kinds of suppliers. So, to make your life easier, look for a supplier that accepts purchase orders via email, or even through Shopify fulfillment, or even one with an easy-order process. This way, you can get things done faster.
Dealing with a traditional supplier can be challenging in this digital age. All entrepreneurs are already burdened in managing their schedule, so you’d want to work with a supplier with outstanding efficiency who can correctly organize your orders. An efficient supplier will help your business become more productive so you can focus on other matters.
Reliable Delivery Service
Having a reliable supplier with excellent delivery service will ultimately elevate your brand. Customers love fast and on-time deliveries while they hate delays and damaged deliveries. The right supplier will give you an excellent delivery service, and a lousy supplier will only give you logistic issues.
The customers will not care even if you have an outstanding product if you can’t deliver it on-time and in good condition. So, from the very start, ask your potential supplier about their delivery service; it will undoubtedly save you from headaches in the future.
Above all these qualities, the quintessential thing you should look for in a supplier is its capability to offer you ticket items with high-margins. Here’s why…
Why You Should Only Work With High-Margin Drop Shipping Suppliers
Aside from reliability, profitability is another excellent consideration in looking for a supplier. You don’t want to just work with any supplier just because they have the perfect product. You must see to it that your business benefits along the process. Besides, your business’ profitability will determine the lifespan of your brand.
To do this, research the market on the average selling price of your high-ticket item and make sure that the offer given to you is profitable enough and allows for great flexibility. The key here is sourcing out directly from a manufacturer since they offer authentic items at low prices.
Plus, high-ticket dropshipping is the better choice because it gives you full control over your pricing. This is in contrast to standard dropshipping, where you only have limited capability to position your price point.
High-Margin Dropshipping Supplier vs. Low-Margin Supplier (Without Seeing Their Price List!)
In looking for a dropship supplier, the main ones that you must avoid are those who pretend to be a manufacturer when, in fact, they are also middlemen. These are what I call “fulfillers.” They are typically the pseudo-suppliers that will only take margins from you. Fulfillers, distributors, or middle-men, whatever you may call it – will negatively affect your profitability since they take a massive chunk from the margin that could have been yours had you sourced directly from a manufacturer.
Take note that in drop shipping, the best setup is Customer – You – Manufacturer. When you only work with a distributor or fulfiller, expect that you’ve already lost a certain percentage of your maximum margin. On the other hand, high-margin dropship suppliers like manufacturers will undoubtedly give you the best prices, which allows for significant profitability for your business.
Don’t Make These Mistakes!
Looking for a dropship supplier can be challenging, but it’s not impossible. You only need to do your research diligently. Also, your life gets easier once you decide on a particular niche since it only takes research to know the actual manufacturers of your chosen niche. So, it would be wise not to jump straight into supplier directory subscriptions.
Paying upfront for access to a suppliers inventory and pricing
Many entrepreneurs go the easy way and just sign up and pay for anything they see they think would help. However, this is not the right practice. When you’re still in the beginning phase, of course, you don’t want to add another payable for unnecessary expenses. Legit manufacturers will not require you to pay any amount only to access their inventory and pricing details. Besides, sourcing legitimate suppliers comes for free when you conduct in-depth research.
Trying to sell low-margin products from distributors.
As mentioned earlier, you should only work with dropship suppliers that offer high margins. Doing so will help build and scale your business effectively to the extent that you didn’t think was even possible. You mustn’t rush the process by settling with items sourced from distributors. Remember, high-ticket drop shipping should give you high-margins. Thus, selling items sourced out from dropship suppliers that offer low-margins will defeat the purpose of engaging in a high-ticket dropshipping business.
Searching google for “[niche] drop shipper”
Yes, we understand that this is the simplest way to research. Aspiring dropshippers typically start their journey by looking through Amazon and Google and searching for the drop shipper keyword with their chosen niche. Say your chosen niche is a massage chair, then you can quickly type in a drop shipper massage chair. This is the traditional way of doing it.
However, this kind of research tends to be shallow and will only give you a more significant potential of falling into the trap of distributors/fulfillers. In the following section, we’ll give you our secret in finding manufacturer suppliers through Google.
How To Find High-Margin Suppliers
So, here’s our secret process of finding manufacturer suppliers through Google. The way to do it is to come up with your chosen high-ticket niche and search them on Google Shopping. From there, you will see where you can find niche sites that sell them. Then, simply check if any of those niche sites don’t have a physical store or warehouse. If so, then you can be sure that their suppliers are drop shipping for them and, of course, will most likely drop ship for you too.
Screenshot of Google Shopping with search results for “Massage Chair”
Then, you can search Google to find the contact information of that supplier and call or email them to see if they’re setting up new online dealers. If so, ask to see their price list or get their wholesale discounts first before you sign a contract with them. If the prices are good, then you can fill out a contract to become an authorized dealer and you’ll be able to use all their brand assets as well as fallback on their return and warranty and shipping policy.
It’s also essential that you deal with many suppliers as much as possible so that you have a back-up plan in case one underdelivers.
How To Select High-Ticket Products
Choosing the right niche will pave the way for your dropshipping business. This step is critical, so you need to take the time to research which niche works perfectly for you. The good thing with a niche dropshipping store is that you can enjoy lower competition since you only cater to a specific audience. Besides that, marketing will be easier and practical since your campaigns will only target selected individuals.
Also, with a niche product, you also have bigger chances of ranking high on the search results, which is ideal for your business’ stability and growth over time. This is in comparison with a dropshipping business that sells almost everything with no focus area.
Prioritize High-Margin Products
You’re not running a charity business. At the end of the day, your bottom line is the most crucial thing that will decide if your business will still survive. So, in selecting a product, you must look for one that offers a high-margin, enough for your dropshipping business to be sustainable in the long run. Remember, the bigger your margin is, the bigger your profits will be.
Get Away from Highly-Competitive Markets
When looking for a niche, make sure that you don’t target a saturated market or one with incredibly high competition. By avoiding products with high competition, you can quickly dive your way into your chosen target market. Plus, this setup will allow you to quickly gain brand attention from your potential customers since it’s not overcrowded with the competition. Moreover, since high-ticket drop shipping products are expensive, there are not many vendors or sellers that are clamoring for sales. So, you’ll be sure to get yourself a good spot in the market.
Dropshipping businesses rely heavily on Marketing. That is why it’s crucial to choose a product that is easy to sell. Having a rock-solid marketing strategy and lucrative social media campaigns will dramatically increase your chances of selling. However, this will all work only if your chosen product can be easily offered in the market.
Now that you have a good understanding of the requisites for selecting the products for your dropshipping business, here’s a list of the best dropshipping products that will surely be worth selling.
Best Niches For High-Ticket Drop Shipping
So, do you already have a product in mind? Are you sure that it has a high search volume? Do people need it? Or is it just trendy? When selecting a niche, it’s not enough that you think of it as an excellent product; it also has to be able to sell itself, and one of the ways to ascertain if it’s worth selling is by checking it on Google Trends or by simply searching for its keyword on KWFinder. These tools will show you the figures on how many people are searching for and are most likely potential buyers for your chosen product.
But to make your life easier, we’ve listed here some of the best high-ticket niches that you can already check out:
Gadgets and Tech Supplies
Another great niche is electronics. As technology improves every day, huge brands are releasing new gadgets constantly. The effect? Record-breaking demand with each technology released. If you’re looking for a sustainable niche, this is undoubtedly a good option since technology is not stopping anytime soon. For instance, drones have a vast market today, and it’s still being sought after by many consumers. The figures even double during seasonal promotions, making it one of the best trending products today.
Home, Garden, and Pets
Since many people have appreciated their home more because of the pandemic, home essentials, furniture, and appliances prove to be an excellent way to jumpstart your high-ticket dropshipping business.
You can select high-ticket items under this niche, including steam showers, kitchen islands, greenhouses, massage chairs, and more.
Sports, Recreation, and Hobbies
Under Sports and recreation, the customers are highly passionate, willing to pay more, and are most likely to buy if you sell high-quality products. There are tons of profitable categories under this niche. Some high-ticket items include a wine cooler, foosball tables, humidors, pool tables, kegerators, and more.
Business, Office, and Industrial
Nowadays, procurement officers in different companies rely on the internet to source their requirements. That is precisely why selling office and business essentials pose an excellent niche. This market is never saturated and will surely give you space to sell your products. Some of the items under this category include fireproof file cabinets, standing desks, card cutters, pressure sealers, whiteboards, and more.
Many high-ticket drop shippers are generating seven-figure revenue with lifestyle niche products. Simply source out enticing products that people will like and pair them with irresistible ads, and you should be well on your way to generating high revenue. Products under this category are never-ending; some examples include jewelry, high-end bikes, and more. It can also include services like coaching sessions and webinars, and training.
These are some examples of the best dropship products that you can try, which are currently doing great in the market. If you’re looking for more options, check out this top 99 niche list for high-ticket drop shipping.
High-Ticket and Low-Ticket Niches
To give you a clearer picture on the difference between High-ticket and Low-Ticket products, here are some of the actual products under each category:
Top High-Ticket Niche
High-Ticket products are high-end and expensive products. Thus, consumers spend more time deciding whether or not to buy it. Essentially, these are products that have fewer orders but make more money.
Here are some of the best and trending products for high-ticket dropshipping:
Since the pandemic caused many people around the world to be stuck at home, more and more consumers are investing in home fixtures that bring about extreme comfort. From kitchen islands, steam showers, illuminated mirrors, electric fireplaces, and massage chairs, the options are endless. Note however that since these are bulky items, you will have to strategize a good way to manage your shipping and returns without losing profits.
This particular niche is a good option when you’re planning to dive into the automotive industry with limited budget. Products that fall under this category includes wheel aligner, car lifter, tire changer, balancer, etc. Basically, these products are typically used in vehicle servicing, which can be difficult to source out locally. Plus, this is a great niche since it’s relatively still an untapped market.
High-Ticket Hobby Items
Surfboard, electric skateboards, jet skis, and gaming tables are just some of the products that fall under this category. Putting up a hobbyist store is a good niche since you can take advantage of peak seasons especially during summer for surfboards and paddle boards. There are also those that sell all-year round like pool tables and electric skateboards, whatever product you choose within this niche, it will definitely be easy to sell with the right marketing strategy.
Kitchen Fixtures and Appliances
Another thing that peaked during the quarantine period is cooking and baking products, which of course, go hand in hand with kitchen appliances. Many people are upgrading their kitchen to maximize its functionality. Some products in this category include espresso machines, dishwashers, kitchen islands, and more. Espresso machines are a great product because you can also target co-working spaces and offices.
Cameras and other electronics
In recent years, people have been sharing photos and videos of their adventures on social media. Since more and more people are getting more interested about photography and video editing, cameras have been selling non-stop. From DSLRs, polaroid cameras, adventure cameras, to drones, the products under this category are simply never-ending.
Top Low-Ticket Niche
Low-Ticket products are cheap that almost everyone can buy. These are essentially impulse buys wherein consumers don’t check other products for further research. The best thing about low-ticket niche is that it promotes impulse buys wherein customers suddenly buy without even thinking carefully, this is basically the edge with low-ticket dropshipping – consumers don’t think twice. With a low-ticket niche, you get more orders but less money.
Here are some of the best and trending products for high-ticket dropshipping:
This niche is probably one of the most universal products offered in the market, the competition is really tight but the product is also extremely cheap, so you can still get enough margin.
Beauty products are dominating the online market today simply because more and more people are getting more conscious about their looks and their aging features. Thus, many entrepreneurs are diving into this niche – don’t worry, this is not just about make-up, this includes all beauty kits and equipment like hair iron, home spa essentials and many more so you won’t be limited.
Remember the fidget spinner? Yes, that’s an example of a trending product that dominated the eCommerce scene. Obviously now, the trending products are mostly around healthcare and sanitation products including UV sanitation devices, air ionizers, masks, and all other antiviral products. These are good to add to your standard dropshipping, however, always take note that the demand for these products eventually dies down.
Simple Home Decor
Another winning niche in dropshipping is home decor. These are products that include carpets, wall paintings, bathroom and kitchen essentials, and of course, home aesthetics. This is a good niche since you only have to keep up with the latest trends and designs and you’ll certainly have a steady inflow of new and repeat customers.
Art Craft Items
This is a targeted niche for the artsy and crafty people out there. This market is good because you will never run out of customers. Most of your customers are collectors and even hoarders of stationery pads, pens, and all other art supplies – making it the perfect niche for low cost and high volume of orders.
How to Get Started in High-Ticket Dropshipping
So, now that you have a good understanding of selecting the right niche and selecting the right supplier, you can now start your dropshipping journey with less worry. Just always remember that in sourcing out suppliers, don’t expect that it will be easy. It’s not. Not all suppliers are just after selling and making money. Many of these suppliers are very limited in dealing with sellers since they only work with businesses that they think are credible and will add value to their business. Thus, it’s essential that you only approach a supplier once you’re ready.
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