Dropshipping has been a popular business model for a few years now, and it doesn’t look like it will be going away any time soon.
However, one variation of dropshipping is growing in popularity: high-ticket dropshipping.
So, what is high-ticket dropshipping? And why should you consider starting a high-ticket dropshipping store?
In this guide, we will answer all of those questions and more!
What is high-ticket dropshipping?
High-ticket dropshipping is an online business model that sells high-ticket products that you don’t hold in stock yourself. Once you get an order, please forward it to your high-ticket drop shipping supplier, who will ship the product directly to your customer.
The main difference between high-ticket drop shipping and regular dropshipping is that high-ticket drop shippers sell more expensive products (e.g., $100+), while regular drop shippers sell cheaper products (e.g., $20).
In other words, when you are doing high-ticket drop shipping, you will be selling so-called high-ticket products.
High-ticket drop shipping products can be treadmills, desks, simulator equipment, or 3D printers. But when is a dropshipping product a high-ticket dropshipping product?
Well, unfortunately, there is no clear answer for this.
Some people claim that a product is high-ticket when sold for more than $50, while others say high-ticket products must have a retail price of at least $2,000.
Our dropshipping pricing strategy guide defines high-ticket products as products that cost at least $30 to buy from your supplier.
In the end, the exact price limits for a high-ticket product don’t matter that much. High-ticket dropshipping is a concept regarding selling products that are more expensive than regular dropshipping products, such as plush toys.
The pros of high-ticket dropshipping
Higher profits for each sale. As you will be selling products for $100 or more, the payoff you get per sale is likely much higher than when selling cheaper products. The higher your product’s retail price, the higher your earnings per sale!
Less competition. When working on your high-ticket dropshipping store, you will have less competition because fewer people are doing high-ticket drop shipping than regular dropshipping. But remember that getting a sale with a high-ticket dropshipping store is still relatively hard, which is one of the cons of this dropshipping model.
Orders are more overseeable. High-ticket dropshipping stores don’t get as many orders as regular dropshipping stores. Because of this, tracking orders is more overseeable, and you will potentially encounter fewer customer support queries.
Good option if you like Google Ads and SEO. High-ticket dropshipping stores don’t rely on impulse purchases. Instead, their goal is to target people actively looking for their product. One of the best marketing methods for this is Google Ads and SEO!
The cons of high-ticket dropshipping
Higher prices equal higher expectations. Selling a $200 product isn’t as easy as a $20 product. Customers will have high expectations for your store and product, making the business model less beginner-friendly. You will need a good sales funnel and a professionally-designed website to convince visitors to buy.
Higher barriers to entry. Don’t expect to set up a few simple Facebook Ads and get people to buy your high-ticket product. If you want to run a high-ticket dropshipping store, you need to form partnerships with manufacturers, a thorough marketing plan, and a registered company.
A refund or returns cause bigger setbacks. A refund is a pity when doing regular dropshipping, but it isn’t a big showstopper for your business. For a high-ticket dropshipping business, this can be a different story. For example, if a customer wants to return their treadmill, you might miss out on a profit of over $200.
More challenging when it comes to shipping. High-ticket items are usually harder to ship because they are large and expensive. Therefore, you might have to start dealing with shipping insurance, customs, and taxes.
How do you start a high-ticket dropshipping store?
Are you dedicated to starting a high-ticket dropshipping store now?
If so, that’s amazing!
But before you begin, you should know that there are some key differences when creating a high-ticket store vs. a low- or medium-ticket store. And that’s what the rest of the article will be about!
Here’s how you can start a high-ticket dropshipping store in seven steps:
1. Decide between a general, niche, or one-product store
2. Find the right high-ticket drop shipping supplier and product(s)
3. Define your ideal target audience
4. Pick your preferred ecommerce platform
5. Design and brand your high-ticket dropshipping store
6. Set up your payment gateways
7. Attract customers through various marketing funnels.
Either way, we understand if you still have some questions! High-ticket dropshipping suppliers and high-ticket dropshipping products are the primary two changes compared to low- and medium-ticket dropshipping.
Tips for starting a high-ticket dropshipping store
The following four tips will be for those thinking about starting a high-ticket dropshipping store. They will cover some of the most important aspects of a successful high-ticket dropshipping store.
We hope they will help your store to become more successful too!
Set up an excellent customer service
You probably know that customer service is a crucial factor that partly determines the success of a dropshipping store. Well, this is especially true for a high-ticket dropshipping store!
Visitors will rethink their potential purchase much more when buying a $300 product than purchasing a $20 product. Therefore, it’s also more likely that they will have some questions about your store or product.
Always try to be as polite and understanding as possible when you reply to a customer with questions or demands. You can also reduce your time on customer service by putting the most asked questions on a FAQs page.
Dealing with your customers promptly and professionally from the start will only bring you a lot of benefits down the line. For instance, you are more likely to get positive reviews, you will gain more loyal customers, and you will have to deal with fewer refund requests (which hurt a lot more on a high-ticket dropshipping store).
Collect high-quality product images
The next tip also has to do with your visitor’s expectations being higher as your product’s retail price rises.
Nobody will buy a $300 product on a product page that shows low quality. Therefore, it’s vital to collect high-quality images of your product, as it will improve your conversion rate.
It’s good to keep this tip in mind while searching for products and suppliers. If your supplier already offers high-quality product images, it will save you a lot of work.
However, if your supplier doesn’t offer high-quality images, you could still try some alternative solutions. For instance, Glorify is an app that could help you improve your image’s conversion rate.
Focus on a branded feel
One of the advantages of branding your product is that it can increase the perceived value of your product. In other words, your customers may think that the product is worth more than when they would see it without your name or logo!
This is an excellent thing for high-ticket dropshipping stores, as they often need every available tool for convincing visitors to buy their product.
You can brand your high-ticket dropshipping store by getting a memorable name or logo, sharing your story, or using branded packaging.
Research the best marketing methods for high-ticket drop shipping.
When it comes to promoting a dropshipping store, there are multiple methods you could use.
You can now advertise your products on social media platforms like Facebook, Instagram, and Pinterest or use email marketing through newsletters and push notifications. And there are so many more marketing methods out there! However, each marketing method has its pros and cons and is suited for a different goal.
We usually share the following infographic from our’ Marketing for Dropshipping’ article, which could help you decide between the best marketing method for your store:
So, which marketing method fits a high-ticket dropshipping store?
Well, let’s think about who your customer is.
Is it someone who would buy your (expensive) product after seeing it in an ad on Facebook, or would it be someone explicitly looking for your product?
For most high-ticket dropshipping stores, it’s the second option. Remember, the more expensive a product, the smaller the chances that someone will buy it impulsively.
Therefore, Google Ads is often seen as an excellent marketing method for high-ticket drop shipping stores!
What pricing strategy should you use for high-ticket drop shipping?
One of the last steps of launching your new high-ticket dropshipping store is determining the right selling price for your product. One of the best pricing strategies for a high-ticket dropshipping store is the perceived value strategy.
Let’s take a look at what it entails! The perceived value pricing strategy
When using perceived value pricing, the main things that determine how much you charge for the product are your brand and your product’s perceived value. When using this strategy, the main goal will be to present yourself as a genuine brand to your customer.
You should have an excellent website, self-made videos and images, a social media following, outstanding after-sales services, and maybe even your logo or brand name on the product.
Doing this will increase your product’s ‘perceived value’ and allow you to sell it for a higher price!
High-ticket dropshipping is an excellent business model if you feel like it has more potential for you than a low- or medium-ticket dropshipping store.
This guide highlighted the pros and cons of high-ticket drop shipping, guided you in the right direction on how to start a high-ticket dropshipping store, and gave you some of our top tips for high-ticket drop shipping.
Hopefully, you find that reading this article was worth your time!
If you did, or have any questions about high-ticket drop shipping or drop shipping in general, let us know in the comment section below!
Good luck with everything!