Hey, pause and think for a while, how good it would be if you could achieve a living by just making 6 sales each month?
Yes, we are speaking about gaining such serious profits.
An insane thought, isn’t it? If that is what you think, then we will just assume that you have not yet heard anything regarding high-ticket dropshipping.
After years of discussion on eCommerce, the most asked question that we come across is, “What is High Ticket Dropshipping”?
But, before we jump into High Ticket Dropshipping, we first need to know what exactly dropshipping is about.
Dropshipping is a type of retail method which doesn’t involve keeping the products in any kind of stock. Instead, what we do is, we ally with a distributor or supplier that stocks the inventory of his own. We transfer or convey all the customer orders and the other necessary details, such as shipment addresses to them, and these suppliers dispatch the respective orders straight to the consumers.
In case you’ve been into this thinking that, the long-established dropshipping is very saturated and you’re looking forward to pushing your eCommerce business to another level, well then, this article is definitely for you
Sounds lovely right? Let’s learn precisely how this High Ticket dropshipping works.
What is High Ticket Dropshipping? High Ticket Dropshipping: The Best Niches, Products and Strategies 2020
High ticket drop shipping is basically explained as an amazing business representation or model which implies selling high-priced goods or items for a hike in profit margin.
With this, the next question that strikes our mind is, Will high ticket dropshipping be a good idea? One such inevitable truth that marketing has, is that the owner faces difficulty in selling high-priced items or products. Not only drop shipping, but this is also the truth of every sales representation model. Although, the profit margins of the high-ticket goods are higher too, and it means that you will be having a huge budget for the exposure or advertising including the rest of the marketing attempts.
Any product before being released in the market needs a good amount of research first. One should know the basics about product selection and product research thereby keeping in mind about his sales volume, marketing costs, profit margins, and other important stuff should balance out to turn into profit.
It is typically recommended that you should sell both, high- ticket items and low-ticket items in order to maintain the equilibrium in between sales volumes and the gross profit margins. In one way, high-ticket items are a good idea to create a fine bump in your overall profits; the sales might come out at odds with you to easily figure out the budgets and the outgoings or maybe expenditures. Owning a steady origin of low-priced product sales may help to level out those loops thereby making it much easier to evaluate or stable your budget.
Speaking the truth, it doesn’t really matter, for how much you are vending items for. There is no such cut-off point where we see that the low-ticket dropshipping turns into high-ticket dropshipping. But it’s surely about the goal of managing to sell more and more of the costly and high priced products as opposed to the cheaper ones.
Generally, high ticket products have powerful profit margins. On the other side of the coin though, high ticket items carry much greater risk. It usually requires a bit more developed marketing approach. High ticket drop shipping generally implies selling less trendy goods or items (thinking of any commercial restaurant appliances or electric bikes).
What is the difference between low-ticket and high-ticket dropshipping?
In this article, we will be learning about all the factors that help to establish a good low-ticket dropshipping vs high-ticket drop shipping debate. The main dissimilarity between the two is its price and the amount of commission that you make. Apparently, if you are selling an expensive product, like a Scooter when contrasted with a tomato slicer, you are obviously going to earn more money by selling or vending the Scooter.
The thing that you need to realize is, if you want someone to purchase a product which is higher in price, you have to convince or make them believe that the Scooter is the only best scooter, which is available and also that you’re giving it at its best price.
If we look closely, there is absolutely no limit in what you sell. Also, you can freely choose products that cost from $100 to $6,000.
Let’s look at an example. Mobile cases are a very popular dropshipping item, but it is incredibly low-ticket just because the selling price is low. If we look on the other side of the coin, we see that a huge camping tent tends to be a high-ticket item just because the selling price is high.
By now, you have probably known how dropshipping works and you might have started to look into the benefits of high-ticket drop shipping.
It is always better, to begin with, the right foot, so let’s jump into the question of why we should take high ticket drop shipping into consideration and expand this category of dropshipping.
Features of High ticket dropshipping:
Merits of High-Ticket Dropshipping.
1) Better Expendable Business Representation:
Traditional dropshipping frequently involves rushing onto the brand new trending product, making elevation, and then switching onto the next item as the previous one becomes saturated.
As out-turn, when dropshipping high ticket items your trade will face a bit slighter competition and will remain less influenced and affected by the trends which further increases your possibility of staying in the business for long-term.
It can turn out to be more enduring or a long-lasting business. You only need to focus on how to sell a few products instead of constantly being on the hunt for new items to phase-in. Another advantage is, you don’t need to spend much time or capital, which in the future may not take the expected effect.
2) Lower Capacity of Customer Support:
In clear words, if you have fewer customers, you’ll eventually have fewer support requests. This will help to free up your precious time that can be helpful in channelizing it on other details present in the business.
On the other hand, you not only just save money, but it clearly means that you can assign more resources, protection, care, heed, and attention to your most valuable high paying consumers or customers.
There are obviously less consumer support requests, which is surely another great benefit that only occurs by having quite a narrow audience.
3) High-level Profit Margins:
More profit is, of course, the most important gain of high ticket dropshipping. Higher profit margins supply a rigid platform from where to launch your developing business. By the high-profit margin, we mean more money is left for you so that you can invest it back into your business at last.
The high-profit margins deliver a rigid and well-founded reasonable foundation that is needed for a flourishing business. Although you may not be generating too many sales, your revenue definitely takes a hike because of the higher cost of each item.
4) Knowing the correct audience:
Interest-based choosing works particularly well because of the narrow audience dimension. You need to target such people who click with the only intent to buy the product.
The dropshipping business representation or model is all about finding high capacity, low-cost items, and focusing on selling out a lot of those products with a much lower profit margin.
High ticket drop shipping obviously takes the opposite route, which focuses on selling a few of the high priced products. It requires two important things to dropship high ticket items successfully: one is a great product and another is a great strategy.
Dropshipping High-Ticket is a brilliant market to invest into. Generally, it takes a certain type of understanding on every aspect of e-commerce namely, branding, store design, user experience, selecting items which can create a greater profit and off course running ads.
Like any business representation or model, it’s not about just fairy tales and rainbows. The major drawbacks or demerits of high ticket drop shipping are riskier than the advantages of it.
Demerits of Dropshipping High-Ticket Items :
1) Investing both time and money :
High-ticket dropshipping is quite similar to that of running a brick and a mortar. The hours invested are obviously long, and you eventually have to outsource the tasks because of the increase and hike in the responsibilities namely, custom product images and coding.
2) Checking products:
When you are into selling costly items, you need to inspect them physically first by yourself, just to make sure that the price actually matches with the product.
You are supposed to own a reseller certificate too, with a specific employer identification number to send or sell all the High-Ticket Items. The demand and requirements for every license differ state by state.
Providing warranties on highly charged products and items are not just presumptions, but they also help to make your prospect more willing to buy. The finest way to offer a warranty is to search for such a supplier, who provides a specific maker’s warranty. In case, the supplier doesn’t provide you with one, you should provide it. You need to make sure to precisely state what is involved in the warranty. In that case, the customer cannot declare or claim anything that isn’t included in the print.
A chargeback is when a consumer disputes a sum that a seller has charged them. Chargebacks often happen with high priced and expensive purchases. When chargeback happens, you will eventually bear the loss, and all the funds are detached which were linked to your account before you receive any kind of notice.
6) Transit problems:
It is sure that there will be difficult to transit with the number of items that spread through USPS, UPS, and FedEx. Packages are undoubtedly lost or get delivered to inappropriate addresses. Undoubtedly, this is surely a matter of risk that must be paid heed to because not just the price of losing the product is expensive, but they also need to replace it.
7) Higher Start-Up Price:
The start-up costs will still be low priced in comparison to the other businesses. You will need a huge amount of cash reserves compared to low ticket drop shipping.
Just because the items are going to be more expensive, you’ll need to risk more money in order to advertise and set yourself a store (which involves copywriting, product photography, etc.) and attract a nice amount of higher cost point buyers.
Before exercising to the chargeback insurance, you need to implement these strategies to avoid unwanted chargeback from taking place first of all.
- Address consumer service requests right away.
- Publish a comprehensive return policy all over the store and also on the receipts.
- Record all the important information on each sale you make, namely, the proof of the product delivery and the buyer.
- Use such a payment processor which clearly has fraud detection features and supplier protection features.
- Make use of an accurate payment label.
The problem with chargeback insurance is that it does not save you from friendly trickery or fraud, which proves to be the most ordinary and common chargeback. Friendly fraud can be explained as a fraud when a consumer states that the item was defective, damaged, or doesn’t match with the description which is reported on the store or your site. Your best move at that point would be to disagree with the claim, in case such a type of friendly fraud occurs.
Concluding from the above pros and cons, we see that High ticket Dropshipping has its pros and cons. Also adding to this, low ticket dropshipping too has its own specific merits and demerits. One method, naming high ticket drop shipping doesn’t have to be necessarily better than the low ticket drop shipping.
But if looked upon keenly, one of the most important and biggest advantages that High Ticket Dropshipping has over Low Ticket Drop shipping is the one and only profits: the profit margin.
👉🏻Is it safe to dropship high ticket products?
Ans. You should definitely start with high ticket products if you’re going to try your luck at dropshipping. Consumer or customer lifetime value tends to be higher for those kinds of products or items if you’re once believed that you ship good quality stuff.
👉🏻Where can I find suppliers?
Ans. You can find high ticket products and items both on sites such as Alibaba and Aliexpress though both do have their own merits and demerits.
👉🏻Is it risky?
Ans. High priced products are more prone to risk. But on looking at the bright side, it does come with precious rewards too. In case something occurs with the product, like lost or damaged, it will hardly cost you a little more money. This is just a part of the business and the game which includes delivering millions of parcels all over the world every day.
👉🏻What are the best high ticket product categories of 2020?
Ans. Few products like bicycles, electric bicycles, bike rack, digital camera, camera accessories, home theatre equipment, home appliances, furniture, art and statuary, drones, model aircraft, watches, pieces of jewelry, automobile equipment, and accessories, etc are best high ticket product categories of 2020.
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Final Thoughts: The Ultimate Guide to High Ticket Dropshipping 2020 The Best Niches, Products and Strategies 2020
By now, you must have understood the advantages of high-ticket drop shipping. This business representation model basically requires the same amount of work and time as low-ticket dropshipping, but it requires more effort and patience and you need to channelize your mindset to earn more profit by risking a bit and gaining the bigger profit piece.
Looking into the bigger picture, it’s surely a win-win situation. If you follow the tips mentioned in this article, you will easily make your way towards success.