This ultimate guide is all about high ticket dropshipping, why it's so profitable, and why you should start selling high-priced products online.
When starting your own online business, the biggest problem is that you don't often have much of the cake left. That means that you might have a turnover of €500, but once you deduct all the costs, you end up making a profit of just €30 or €40.
This article will teach you how to solve this problem. I'm going to show you why you should start with high ticket dropshipping, what the pros and cons of it are, and I will give you 7 of my top tips on how you can start your own high ticket drop shipping business.
What Is High Ticket Dropshipping?
High ticket dropshipping is the online sale of high-priced, physical products. These have a minimum value of €50 and ideally €200 or more. This allows high sales to be achieved with just a few visitors to your online shop.
If you start between €50 and €70, this is a very good starting point and highly recommended.
I will show you the pros and cons of high ticket dropshipping and explain why you should definitely start with it.
Why Sell High-Priced Products Online?
So...why is it better to sell products at high prices?
This can be explained with a very simple calculation.
If you want to make a monthly turnover of €10,000 and have a high profit, you can't do "low price" dropshipping.
That's because if you sell a product for €15, you'll need 666 sales in order to earn €10,000.
For example, if you spend €7 on advertising costs per product and have €5 in product costs, you will only make a total of €3 in profit.
If you calculate: 666 sales x €3 profit, you will end up with just €1,998. So there is actually very little left of your €10,000 turnover.
I think it's great that you're now making sales and even a profit. That's probably better than what most people can do. And 20% isn't that bad either.
But now let's see what happens if you do high ticket dropshipping and sell a €200 product instead of a €15 product.
If you sell only 50 units of a €200 product, that's still a turnover of €10,000.
Then let's say we spend €60 on advertising to sell a single product.
We have maybe €40 in product costs, which is also very realistic for a product that you sell for €200.
That means we're spending €100 to make €200 per sale. In order to make a €10,000 turnover, we only have to sell the whole thing 50 times.
That means we make a profit of €5,000.
So, we've made 2.5 times more profit with the same turnover!
And yet you need almost 13 times less traffic when doing high ticket dropshipping. Isn't that genius?!
Imagine we've built an online shop, loaded this high-priced product onto it and then start buying ads. If we make exactly one sale per day, we can spend €60 a day on advertising!
Here is what one of my coaching participants said to me:
If you do the whole thing with a low-priced product, you can spend a maximum of €10 a day to make a sale and still make a profit.
You can compare what's easier:
If you have to make a sale on Facebook Ads for €10 to make a profit, or if you can spend €60 and generate a sale with it.
So, that's really the only way you can make such a big profit with dropshipping.
I hope you now have a clear picture of what it is to sell high-priced products and why it is so profitable, from a mathematical point of view alone.
But I'd like to show you a few more advantages and disadvantages of high-price dropshipping, since not everything is black and white.
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Advantages Of High Ticket Dropshipping
First of all, let's take a look at the many advantages that high ticket dropshipping has to offer.
The most important advantage of high-priced dropshipping is sustainability.
We no longer just sell smaller trend products, we have the advantage that we can focus on a long-term niche that is really evergreen.
This means that once you've found a product that truly works, it'll run and be a success for years.
Since we can also make fewer sales in order to achieve such high turnover and profits, we don't have to land as many customers. In other words, the market is much bigger for us.
Less Customer Support
Another advantage is the low customer support that you logically need.
If you only do one sale a day and still earn hundreds of euros, then you have the advantage that you only have to look after one customer.
With the other method, you would have to look after several customers and would possibly even have to outsource the support to several employees.
The third advantage of high-price dropshipping is the high margin.
That means you can spend much more money on advertising and scale far more.
In the long term, you can build and position your brand better in this way, and all through only the high margins.
It's no wonder why huge, global companies like Apple only sell high-priced products. How much do you think it costs to make an iPhone? The margin is enormous!
The next point is that you need much, much less traffic in order to make money.
By having a higher margin, you need fewer sales to make the same or even more profit.
This means you can focus on doing really well with what little traffic you get. I think that's such a great advantage.
Another benefit is that you have less competition and you don't have to focus so much on price wars because someone is trying to undercut your price.
It's about the added value of the product you are selling. High-priced products are problem-solving products.
Every time a product is sold, you offer an added value. It's really important that you understand this.
You can also put together bundle offers and, for example, sell the high-priced product and give a free PDF or video explaining how to best use the product.
This way, you'll get the best results.
Disadvantages Of High Ticket Dropshipping
There are also some downsides to high ticket dropshipping. After all, everything has some drawbacks.
For me, the disadvantages aren't too serious and the advantages definitely outweigh them. That's why I even recommend hight ticket dropshipping for beginners.
Just paint your own picture of the disadvantages.
The first disadvantage to high ticket dropshipping is that you have a higher cost per purchase. Because of the higher price of the products, you also have higher expenses.
This means that you no longer only have €5-15 per sale, as with the low-priced products. With high ticket dropshipping, you may simply have to spend more money. This is often around €30 - €60.
However, because the margin is so big, you are more than just profitable with the first sale. But it's important to note that you have to pay a little in advance.
So, it may be the case that you have to let your store run for a week and only then do you make your first sale.
You have to invest a little more in the beginning, but as soon as you make the first sales, your business will gain incredibly high profits.
It's really important that you think long term.
No Impulse Buying
The next disadvantage of high ticket dropshipping is that the sales here are no longer from impulse buyers.
With low price dropshipping, many purchases are made quite spontaneously because customers simply see a cheap product that they want.
But with the high-priced products, they simply won't buy spontaneously.
People will often want to do a little research first. They want to see social proofs and reviews. They want to see that the product is of high quality and worth it.
That's why you need to focus more on branding with high-priced products and build a brand that customers trust.
And that's just a small disadvantage, because that way you simply won't sell as many products as if you focus on impulse buying.
The last downside to high ticket dropshipping is that you shouldn't use AliExpress.
AliExpress is known for having poor quality products and shipping times are often long. That way you won't be able to sell products at high prices.
That's why I recommend everyone use high-quality suppliers. Suppliers who deliver really good quality, are fast and maybe even work with DHL and FedEx.
It should also be possible to brand the delivery with your own logo and packaging if the product sells really well. This way, the whole thing looks really classy, high quality and you can differentiate yourself from other dropshippers.
7 Tips For High Ticket Dropshipping
I now want to give you 7 tips so that you will be able to implement the whole thing yourself.
The Best Niches For Dropshipping
The first tip is simply to focus on specific niches. Focus on a specific area.
Good niches for high ticket dropshipping are, for example, office furniture (such as standing desks), smart homes, electric bikes, equipment for the home theatres, watches and high-quality jewellery, drones or other electronic items.
You can of course also consider what hobbies people with a lot of money have and what they spend their money on. Products for fishing or playing golf would be particularly suitable. The aim is to always address people from wealthy backgrounds. Never sell anything to people who can't afford the high-priced products.
There are also higher prices and they have to be paid somehow. That means you can't just sell something like this to every guy; you have to think very clearly who the person you want to offer something here is.
Focus On Product Quality
The next big tip for selling high ticket dropshipping products is that you really focus on the quality of your product.
You have to keep your customers happy because these products are ultimately about more money and buyers expect good service.
As already mentioned above, high-quality suppliers and manufacturers who do the whole thing for you also help here. Never use AliExpress - it's not a good supplier.
Make sure you ship it quickly with FedEx, DHL and of course with tracking.
There is nothing worse than having customers having to wait too long for their order.
That's why I recommend that you go with the best shipping and add tracking numbers right from the start. That way, you're well prepared and can sell super quickly.
Analyse Target Groups And Competition
Next, you should do a really detailed target group analysis and a competition analysis.
You have to know exactly who your competition is and what you can adapt from them. What works well? Is there room for improvement?
You also need to know your target group well. You need to know exactly what brands people like, which magazines or books they read, and which events they go to.
You really have to know all that in order to address customers correctly. When you know your customer well, the marketing side of things becomes very easy.
Be Consistent In The Branding – Stay Minimalist Like Apple
Be consistent in your branding. This is very important in three areas:
Product Photography & Videos
Don't just take any photos or videos that are poorly produced and of poor quality. Instead, you can send the products to a photographer who will take great photos for you, which will draw the customers in.
If you do this, you'll have high-quality results for your marketing. Someone should see the product in use and recognise exactly where the benefits of the product lie.
You should definitely invest here if you want to brand your products well.
Convincing Sales Copy
It doesn't help to just list some of the product features, what properties it has, and then hope that it will sell.
Every single property has a use and a meaning. Here's an example: With a frying pan you can say it's Teflon coated, which means your food will never stick to the pan again, and your wife will never complain that your food tastes like smoke.
Good sales copy is always about the benefits of the product.
Good Customer Service
You need good customer service that can help potential buyers and get them to buy.
It's very important that this customer service person also knows exactly what to say, for example, if a customer has a specific question about the product.
Any question is an objection that prevents the person from buying. This is why you can't just get any Tom, Dick and Harry, who has no idea what they're doing. You have to create a clear training course for this person.
For example, you can create a document stating exactly what to do if a particular question arises.
This SOP (Standard Operating Procedure) is a process that the customer service person simply has to do. Only then will the whole thing work.
This means you can hire anyone you want for your support, go through this process and then they'd be able to make independent decisions.
Another important tip for successful high ticket dropshipping is re-marketing. You need to focus on doing mostly re-marketing.
The fact that this is not about impulse buying makes it much more difficult to acquire new customers.
You have to use customers who have already bought from you for your marketing. Show your target audience with test reports that your customers are satisfied.
This is how you can convince people, who are about to buy, to actually buy the product.
The final tip is to collect as many testimonials as you can. This is essential for re-marketing.
Email your customers, ask friends and relatives to test the products, and let your customers do the talking.
This shows undecided buyers that there are a lot of positive reviews about your product.
The whole thing will then start rolling by itself. Your cost per purchase will decrease, you will make money and have fun doing it.
People will be happy to buy from you. They'll even buy from you again because they trust you and your products really add value. What's better is you'll get more testimonials.
My Conclusion To High Ticket Dropshipping
As a beginner, should you start doing high ticket dropshipping and selling high priced products online?
With this dropshipping model, it is much easier to make a profit. You need less traffic because you need less sales and you will make a lot more profit in the long run due to the high margins.