Most ecommerce entrepreneurs are familiar with the classic dropshipping business model. Its main focus is to find popular low-cost products and sell a whole bunch of them.
High ticket dropshipping takes the opposite route, focusing only on selling a few high-value products.
To successfully create a dropshipping business revolving around high ticket products, a business owner must have two things – a great product and a great strategy to promote that product.
Can anyone start a dropshipping business revolving around high ticket products? And what does high ticket dropshipping mean exactly? Let’s find it out right now!
What is high ticket dropshipping?
High ticket dropshipping generally means selling products at a high value. There is no exact specification of high value. Some people declare the product price ranges should be from $200 and up, others think that such items cost $500 and up, and some even suggest such prices as $1000 and higher. As you can see, there is no exact threshold.
In any case, it isn’t your regular dropshipping store, where the markup of the price is just a couple of dollars.
A high ticket dropshipping store is common in such niches as fine jewelry, art, furniture, and hi-tech consumer electronics.
What are the common features of high ticket dropshipping?
When you start a dropshipping store that offers high-value products, there are some factors you need to be aware of.
- No impulse purchases
One of the main reasons the dropshipping business model is so popular is impulse buyers.
Usually, a dropshipping online store has lots of unusual and unique items. And once a store visitor sees them, he gets excited to make a purchase with almost no second thoughts. Even if he doesn’t exactly need the product.
This is a great strategy simply because the items that a general dropshipping store lists are easy to afford with any kind of budget.
However, when you sell expensive items that are worth more than $50 or even $20, people start researching. They want to find the best value for what they are looking for. And that’s the right approach – since they’re going to spend a reasonable amount of their hard-earned cash.
- Large competition
Selling high-value products means that the level of competition is going to be high. Just think about some kind of computer or piece of furniture. You already thought of a few large brands that supply those kinds of products.
Those brands have already established themselves as trustworthy and popular sellers, and most likely, people will prefer to shop with them than any other unknown business.
- High expectations
When consumers buy a high ticket product, they expect much more than just a quality item.
Stores that sell high-value goods have really honed features like customer support and any other extra service.
And when a potential customer wants to make a purchase from a large brand, customer support can easily answer any questions about the products, provide guidance, or even come up with special offers.
This is exemplary behavior from a large brand, as they want to make sure that customers are 100% satisfied with their purchase.
And if the customers find any inconvenience during the purchasing process, they will easily abandon the purchase.
What makes High Ticket Dropshipping so attractive?
Having read everything stated above, you might be thinking that starting high ticket dropshipping is a waste of time. However, this kind of business has its own benefits that are just too appealing to miss out on. One of those is that you can earn more with fewer sales, while doing the same amount of work.
Let’s take for example a regular dropshipping store that sells mobile phone cases and a high ticket dropshipping store that sells laptops. And let’s say that you estimate to make $3000 a month.
If you earn $3 on each sale of a cell phone case and $300 on each sale of a laptop, how many units would you need to sell in order to reach your target?
You’re going to have to sell 1000 cell phone cases a month! Whereas, you can focus your efforts on selling 10 units of laptops.
Handling 1000 customers a month can take a toll on anybody, whereas 10 customers can be handled with ease.
Not to mention that you’re going to be making the same amount of money as the person who will be dropshipping low-cost products.
Essentially, that is the biggest reason to start high ticket dropshipping. Even if you already have an established dropshipping business dealing with low-value products, you can always try to upgrade it to high-value products. By doing so, you will have the opportunity to work less and earn more. We hope that you found this article informative and helpful!