How to Enter the High Ticket Dropshipping Market
So you’ve come here hoping that this is the way you’re going to escape the dreary existence of an office-bound day job and live your dreams on a beach in Bali while your high ticket dropshipping store runs itself. Ok. Good plan. But how are you going to make this happen?
The truth is, successfully becoming a high ticket dropshipper requires you to leave social media-driven, pie-in-sky ideas behind and get to grips with what a real dropshipping business model looks like. You need sound advice to attract high-ticket customers because they’re a little different from your average consumer.
That’s what we’re going to provide. 9 steps to help you enter the high ticket dropshipping market and we’re going to explain to you what makes a premium dropshipping business model different from low ticket dropshipping because it requires you to have a different mindset to succeed.
Btw, if you want to skip right to getting your online store set up, get competitor research done, connect with reliable suppliers and make sales within days, then you should check out Dropbuild.com. They’re a Shopify development agency that will build you a premium online store in 7-10 days.
What’s different about high-ticket dropshipping?
For starters, the whole nature of high ticket dropshipping products leans towards sophistication, exclusivity, and premium quality. High-ticket products are expensive and highly desired by the customer. This is what makes high-ticket dropshipping so profitable and separates it from the average dropshipping business model.
Here’s a quick comparison of the differences:
Lower start-up and running costs from the start.
Cut the costs for your high ticket dropshipping business down immediately with Dropbuild.com. They will develop a niche store with 10 winning products, video and social media ads, payment processing, SEO optimization, connect you with top suppliers, and answer your high ticket dropshipping FAQs - for life! Get your store now.
9 Steps to becoming a successful high ticket dropshipper
With a basic understanding of what it takes to run your own ecommerce business, you can now get into the finer details of what it will take to make high-ticket dropshipping profitable in the long run.
1. Know your target audience
This is one of the biggest differences between low-ticket ecommerce and high-ticket dropshipping niches - the customers. Social media platforms have transformed how products are found and sold across the internet, with consumers doing very little work to find and buy anything they want. As long as you can get an ad in front of your audience at the right time, then you’re likely to make a sale.
This is slightly different from customers who buy premium products. A high-ticket customer requires you to have more knowledge, professionalism, excellent customer service, and efficient processes.
Your target audience is sophisticated not just in their tastes but also in their approach to buying. The chances that the high-ticket customer has already thoroughly researched the product they want to invest in is high. This also means they won’t be pushed into an impulsive purchase. But, the good thing is they have higher purchase intent.
2. Set the correct price point
You’ll be selling fewer items and making greater margins, and this will require you to set a higher price point. A sweet spot for high ticket dropshipping items is between $200 and $2,000. Most high quality products that consumers are looking for fall inside this range.
The supplier’s price will influence what you can charge for the product and you’ll have to factor in shipping costs, but you should also do a deep dive into what your direct competitors are charging for the same product.
3. Get your product selection right
You can identify products with strong market demand by analyzing search trends and consumer interests. This will ensure a steady flow of interested buyers for high-priced items.
The first step is to think like your target audience and list keywords they might enter into search engines. Test these keywords using Google Trends, identifying search terms with rapidly rising search volumes. Shopify suggests that you validate your product idea by comparing several data sources before making your final decision.
Designing a one-product store may seem like it would create focus, but this can also have a negative impact unless you are certain that the product you choose will do well. If you want to get your store running as quickly as possible, opt for one where you can add more products when you’ve completed your product research.
4. Popular high ticket dropshippinng products
When you start high-ticket dropshipping research, the line between low-ticket and high-ticket items might not be apparent because there are some very popular products that fit into the $200-$300 category but are not considered high-value items. The following are broad categories of consumer goods that are classified as high ticket:
- High-quality, designer jewelry
- Outdoor gear
- Furniture and interior design
- High-value consumer electronics
- Lawn and garden equipment
- Premium cooking and kitchen appliances
- Gym and sports equipment
- High-value hobby items
Anton Kraly from Drop Ship Lifestyle suggests that your passion should NOT be the driver for which product you sell because that may throw you into competition with major brands. He explains that having a passion for iPads would pit you against the Apple Store, where consumers can already find any product they’re looking for. Instead, he suggests you focus on high quality products that consumers want and need and then make a successful business your passion - not the product.
5. Successfully navigate the principle of supply and demand
The biggest drawing card for dropshipping is that you don’t have to keep any inventory or worry about whether you’re overstocked or understocked. This is handled by the supplier. However, you do need to consider the availability of the product you want to sell because this becomes a major reason for declining sales if you’re always struggling to fulfill orders.
6. Collaborate with a reliable supplier
Without a doubt, this is what makes or breaks most dropshipping businesses. The essence of dropshipping is that you don’t need to worry about order fulfillment, warehousing, and logistics. This has been the exact reason so many people have entered the ecommerce space. However, this part of your process can also go horribly wrong if your supplier turns out to be unreliable.
Choose suppliers who already have a reputation for high quality products, fast shipping, and excellent customer service. This will not only make your life easier but ensure your business thrives. Working with a Shopify development agency can be a great way of ensuring that you work with top-notch suppliers from the beginning. They already have a vast database to work from that would take you a while to develop, speeding up the time it takes to make your first sales.
7. Set up an interactive and high-quality dropshipping store
Your online store may be the only thing you have to set you apart from your competitors in a high ticket niche, so if you’re going to invest heavily in anything, it should be this. High-profit business owners earn more money because they have well-designed, high-conversion stores. These stores are usually developed by someone with experience in the ecommerce space and understands how things should work.
Include these critical elements in your store:
8. Track your profit margins product by product
Once your products start selling, it's not over - it's just the beginning. Now, you need to work smarter, not harder, by tracking your top performing products according to the profit margins you’re making on each product. Don’t bother to just look at sales volume or total sales for a month because this doesn’t provide you with an accurate picture. Profit is king!
Ideally, you should track this movement every week (or more often) when you start because you want to cut products loose that don't perform relatively quickly. Your attention and focus will be required to make these key business decisions in the first six months until your store is running smoothly.
9. Establish a customer-orientated support service
This one is extremely important for high-ticket stores and something you cannot compromise on. Customers at this level will expect you to be responsive to their questions. Initially, you may be doing all the customer service work yourself, and when you have a good amount of money, you can outsource it to trusted call centers or hire a junior customer service person.
The first three to six months are all about reputation, so invest whatever time and resources you have over that period to set yourself apart with the service you deliver. Get excellent reviews and testimonials from happy customers to give you a better chance of selling more products.
People like to hear from other people when they make buying decisions - an element that isn’t discussed as much as it should be when it comes to dropshipping.
Make it happen
Each of the nine steps listed here is as important as the next for turning your ideas into a reality. If you’re truly serious about leaving your job and creating lasting wealth, it will take minimal financial investment but a huge dose of courage. Moving forward into the unknown when it could be easier to stay where you are will help you sleep at night (maybe), but it won’t be as fulfilling.
You came here for a reason, looking for freedom most likely, and there’s nothing wrong with that. Now, take the next step. With Dropbuild’s commitment to building high-conversion stores you could be up and running in a matter of days. The effect? A renewed hope that you can achieve financial freedom this year!
Or you can go it alone and steadily work on your high ticket store with the aim of leaving your 9-5 job. But let’s just reason with you for a second. How many people actually end up achieving their goals this way? And why do it when you can get all the help you need?
Isn’t this starting to taste like victory already?
