Today I will show you my ultimate guide to high ticket dropshipping and how you can easily earn $300 with one sale.
High ticket dropshipping becomes more important every year because advertising costs go up and we need to keep up with it.
So if you’re thinking about starting a high ticket dropshipping business this guide is for you.
It is also for you when you’re advertising but you don't get any sales but don’t know what you’re doing wrong.
Here is what you're about to discover
- What is High-Ticket Dropshipping? [00:23]
- Why Choose High Ticket Dropshipping Products? [01:21]
- What are the Downsides to Dropshipping High-Ticket Products? [03:24]
- High Ticket vs. Low Ticket Dropshipping [07:54]
- Best High Ticket Dropshipping Products & Niches [10:52]
- How to Transition From Low-Ticket to High-Ticket Dropshipping [17:23]
Welcome to the show. Today, I want to talk about the high-ticket drop shipping and my ultimate guide. If this is the first episode on the podcast, please do me a favor and if you like it, go to iTunes and subscribe to it and leave a five-star rating. It really helps me out to get this podcast high in the rankings and get more people listening to this episode right here.
Sam Peiffer: ([00:23])
First of all, I need to tell you what actually is high-ticket drop shipping and how it can benefit you. High-ticket drop shipping is selling products that are over $200 or $300 and that have a high profit margin. To do that, you don't use suppliers like AliExpress or something, but you use local suppliers, for example, that are based in the country where you're selling. So when you want to sell in the US, you can use US-based suppliers to fulfill the orders. And you have a lot of benefits doing it this way because you can have really fast shipping, your own packaging and everything. Basically the idea is to up the value to high-level and also the cost. But why should you choose to drop ship high-ticketing products?
Sam Peiffer: ([01:21])
Let me tell you a quick story about a friend I met in Panama and he's doing high-ticket drop shipping in a way that it's very interesting to me because he has a construction company… No, he doesn't have a construction company, but he helps construction companies. He's selling them shoes, vests and stuff. And what he's telling me, he's just picking two or three companies a month, and sells them B2B style, a whole bunch of the same shoes, and vests and everything. And then he's giving them an invoice for £10,000 to $20,000 and he's doing it three times a month or something. And he has a really good income then.
Sam Peiffer: ([02:13])
That's the basic idea behind it. Either you go with the product being more than $200 or $300 or you go with customers who spent more than $200 or $300. And that's the basic idea. The benefit of it is that you have really high profit margins. You can go and find products that you can buy somewhere for $500 and sell them for $700. And then you make a $200 profit instead of just going the normal AliExpress route where you go and find, for example, the legendary “wolf mug” or something for $10 to $15 or so, and you sell it for $30 and you have like $15 made. What will make you more money with less effort then?
Sam Peiffer: ([03:04])
So you need to consider it. So it takes roughly the same amount of work to make a high-ticket sale than it takes to make a low-ticket sale. So basic ideas, you make less sales, but you earn a lot more, okay? So all of these benefits are obviously very cool and everything, but there's a little bit of a downside but every downside can be turned into something positive.
Sam Peiffer: ([03:36])
Because in high-ticket drop shipping the barrier to entry is a lot harder because you need to establish a brand and everything and when you drop ship from AliExpress with a high-ticket product for example, you drop ship a $900 item, and sell it for $2000 or something. The people they don't want to wait six weeks or something. They will refund you and then you paid the product and you have to refund them, for example. So you need very good suppliers for that. The barrier of entry is a bit harder. But I have a solution for this one and it's called uDroppy. Go to the show notes or here in the post for example, I link you to the supplier page, it's insane. It's a very high quality service where you can ship worldwide with DHL for a little price and their warehouse everything for you make the whole packaging for you. You can make it custom design everything and you get a [inaudible [00:04:44] manager with it. And there are a lot of benefits to doing it this way.
Sam Peiffer: ([04:48])
And another downside for high-ticket drop shipping is that you need to have an amazing customer support. It's necessary because when somebody buys a very expensive item and, for example, they have a question or something and you can't answer it, you will lose the sale and that's not so good. So you need to have a phone support. That's the best thing or at least a live chat 24/7 live chat. That's the minimum you need to have. But you can find some good people on Upwork for five bucks an hour or something.
Sam Peiffer: ([05:25])
So, you also need them to build up an enormous trust with the customer. So you need to establish the brand. You need to be creating content and your customer needs to really believe that the product is going to help them, that this is the best out there because people, let's face it, they do a lot of research. Imagine you go buying a MacBook or something, you will look for different solutions, for example, for Microsoft so. And see which one is the best fit. And when you don't do good proper branding, it becomes very hard.
Sam Peiffer: ([06:05])
But it also forces you to create a brand and forces you to create longevity in your drop shipping business and not just create the next store that's running for three weeks and then it doesn't convert anymore. It forces you to make really good decisions for business long-term, not only short-term but I told you, every downside can be turned into an upside again.
Sam Peiffer: ([06:26])
So, and another downside for a beginner at least, is that you will need to send the customer through a high converting sales funnel, okay? It's not enough to just create the Shopify store and hope somebody will go there and buy. You need to have a really good funnel that converts them with high conversion rates. Otherwise you won't compete with other people's because you compete with brands now and the brands have a ton of advertising budget. And with a funnel you have basically unlimited revenue that you can spend on your advertising because you can offer up serves and everything. So the first sale, for example, is only for break even and the second is made for profit and everything. And with a normal shop it would be pretty hard to run paid advertising to it. So that's the thing, if you're going to compete with brands, yep.
Sam Peiffer: ([07:31])
But, for example, the high-ticket drop shipping when you are in a niche where not so many brands are and you're more or less the only one, but you're doing high-ticket drop shipping, you are the go-to solution. It will be so easy to run paid ads because you have huge profit margins to spend on the Facebook ads or Instagram ads or influencers or whatever.
Sam Peiffer: ([07:54])
So now that you know that ups and downs of the high-ticket drop shipping, let me quickly tell you the difference between the model most people are doing. And what are the three tiers of drop shipping that you can use to make some money. So the first one is a low-ticket drop shipping. That is like I'm selling products that are less than $50 and this is what most people do and you will have the most competition there, okay? And this will be the hardest thing to do because there are A, a lot of people and B, the products are so cheap and C, you don't have a lot of profit margin to spend on ads. So for example, if you make, you want to sell a $50 product and your product costs you $25 or something, and the maximum amount of money you can make is $25 and you just have $25 for ads spent, then okay?
Sam Peiffer: ([08:52])
So you need to know your numbers really good to make this work. And when you go for a mid ticket drop shipping, it's like $69 to $200 or $199 whatever. This is the range I generally recommend to starting out because it's not competing with the brands and it's a really good starting point for you to just get your feet wet. And also there are a lot of products that you can sell in bulk. I mean like items that people need two or three times or four times and you can get a discount and you can come with a mature product in a high-ticket range.
Sam Peiffer: ([09:39])
For example, if somebody buys five products of it or something. And that's amazing, it's really amazing. And there's this high-ticket range I was talking about here in this whole podcast episode with just $200 to $300 or more, which is also the best for branding, okay? So I would recommend starting out with a mid-tier $69 to $199 and then if you are making really good sales and everything, tried getting into high-ticket more. Or just starting out with high ticket and focus on the quality and on the customer, and on the whole experience itself.
Sam Peiffer: ([10:16])
So it's up to you. Those are the two best and they're very similar. But I think the $69 to $199 is the best way to go right to them. So if you want to learn this actually step-by-step having a high-ticket drop shipping master client class, it's currently closed right now. But if you go to the show notes, you can subscribe to the notification list and when we open again, we open two times a year and then I will notify you when a spot's available. So go on the show notes and sign up if you want.
Sam Peiffer: ([10:52])
So I want to give you some more, I want to over deliver on this post here. So the next thing I want to talk about is what are the best high-ticket drop shipping products or niches? So for me personally, there are a lot, but you need to keep in mind that when you do high-ticket stuff or high-ticket drop shipping, then you need to focus on quality first.
Sam Peiffer: ([11:21])
And the second is item weight at the shipping costs and everything because it can be very hard to deliver the items when you're drop shipping from Canada to US or something. But if you're using the same country fulfillment, this will not be such an issue, okay? So keep in mind the fulfillment part, that's very important, okay? So for me the first thing that comes to mind for high-ticket drop shipping is very high quality coffee and barista equipment. People love it. And the whole YouTube influencers that are currently creating with the cameras, these bureaus style videos where they shoot just how they create coffee. It's very easy to market coffee and barista equipment now because all these people have huge followings, just interested in shooting coffee or something with the cameras. And these people, they have a lot of followers and you pay them $2,000 or something and they do a whole video for you and then you will make a bunch of money with it.
Sam Peiffer: ([12:26])
So the next thing it's like bicycles, electric bicycles and stuff. Everything that's cool in the bicycle market you can really do it and one of my former business partners in Switzerland, he is one of the biggest bicycle companies and it's crazy. They made a seven or eight, no, I think eight figure exit with the bicycle company. The company was like 50 years old or something or even more. I don't know why. I don't know how long it is. But it's a very profitable niche because you can go for some bicycles they sold them for $7,000, that's insane. And these people make just 10 sales a month or something and they have 70 grand and that's it. The next thing you can do is home theater equipment, like soundbars, lights, smart home and everything. That's like a trend right now, but it's also for the products with high demand, very good margins. I would really recommend going into this niche.
Sam Peiffer: ([13:36])
For example, furniture is very good or something like gadgets, helps you to improve your home also falls into this category. What I really like is digital cameras or camera accessories, camera bags, cleaning kits for your cameras, guitar stuff, things like that really help you with your hobbies for example. Or what's also is very good are drones and model aircraft like these, not like the DGI, like Maverick or something, but more for kids, that you can give your kids to just play around with and everything. Or like fancy electronics for example, giant power banks or something with key charging for charging your iPhone, your watch and your Apple at the same time or so.
Sam Peiffer: ([14:42])
Or you can go with watches and jewelry. That's the most common thing I hear from my students that start out with drop shipping. Oh, I just sell some watches and some jewelry. It's very profitable. Yes, and you can really buy cheap jewelry. Yes, but you need to be aware of the quality because it's a lot of fake stuff with fake gold, with fake silver and everything. As long as it's really fancy and the material is good, you can have unlimited margin. You can buy rings or something for 50 bucks when the quality is okay and it looks amazing. It's really fancy and you can find it anywhere else. You can easily charge $300 for it.
Sam Peiffer: ([15:29])
Next thing is home appliances. I don't have to tell you anything about automotive equipment and accessories. For example, we had this charger for the car that you put in your cigarettes' ignition and so you have the cable, they ran through the cigarette ignition and you have a normal smartphone standby. It opens automatically and close automatically if you want to put in your smart phone or get it out and it charges your smart phone while you're driving with wireless charging. This is insanely good and it worked so, so good. That's a lower-ticket one. But there's a verification for the snitch.
Sam Peiffer: ([16:19])
You can sell tires or something. That's what my uncle was doing. And tires are very expensive. So just pick one and start with it. Or you can go with art and statues for example, like a lot of people on [inaudible [00:16:38] actually selling very cool art and my wife bought some masks for a photo shooting. She's a photographer and they look so awesome. And you can really help people with, for example, you do like the masks thing for photographers if they have a really nice shooting or something they need high quality shooting art for the models and everything. And if you're in that niche and these people have money. So you need to also think of which niches do have the money. The Grand [inaudible [00:17:19] guy says, “Who's got my money?” And you have to think about that too.
Sam Peiffer: ([17:23])
So the last question I got is how to transition from low-ticket drop shipping, like non-branded stuff to high-ticket drop shipping with a brand. So the easiest thing to do to switch, if you are for example, making little to none sales and you think okay, in mileage it's not possible, then just create a new store. And one of the mentioned niches I told you right now. Or, for example, you can go on my book, I have over 50 more niches explained in detail there, as linked in the show notes as well.
Sam Peiffer: ([18:00])
And the actual step that is needed to switch once you're started the business and you see, okay there are high-ticket products but you don't want to sell, let the people wait six weeks because you're sourcing from AliExpress or something. Then use premium suppliers like uDroppy. I highly recommend them. I was featured on their blog because I liked them so much. I immediately said yes as they asked me to do an interview with them. They are so great and I linked the interview on my blog if you want so you can read it. And I gave some amazing tips on how to establish an international brand there. So yeah, just go to uDroppy here, see the interview. And if you like it then you can sign up for their premium supplier package or something and start doing high ticket drop shipping worldwide. And this shipping is in less than seven days and it's insane with DHL, that's a German quality delivery. That's what I was using all the time back then when I lived in Germany and I really liked it. So we had like same day delivery and everything back then.
Sam Peiffer: ([19:12])
So like I told you, should you do high-ticket drop shipping? Yes, you should definitely do it. If you're serious about your drop shipping business and you want to create a brand that's lasting very long, but if you're just in it for making a quick buck or something, just go with a mid-tier drop shipping thing for 70 bucks or something and start with that one.
Sam Peiffer: ([19:36])
But I wouldn't recommend choosing low-ticket products for drop shipping because you will lose a lot of money because you don't have a lot of margins. That's the whole idea behind this year. And remember if you want to go very deep in the subject, go on my notification list to my high-ticket drop shipping masterclass. And right now it's currently closed, but when we open again and just subscribe to this notification list, I'll email you then and then you can enjoy this whole thing. Okay, so that's it for this episode. See you in the next one.