High ticket dropshipping, what does it really mean? This blog post will explain some of the most important steps you need to take care of if you want to start selling high ticket dropshipping products. Stay with us because today, you will learn something that can potentially change your life for the better.
High Ticket Dropshipping – What Does it Really Mean?
Products in dropshipping are divided into Low Ticket and High Ticket dropshipping products. Let us now clarify a little about what exactly this is about. Simply put, Low Ticket products are a type of product with a low price, while High Ticket products are a type of expensive products and are potentially extremely cost-effective. What exactly is the limit when a dropshipping product crosses from Low Ticket to High Ticket is very relative. Most experts agree that the limit is $ 200, but that is again a very individual matter. The bottom line is that with High Ticket products, you earn more with less effort.
With this type of product, you need to have a prepared webshop of modern design that exudes style and instills confidence in potential consumers. The images must be stunning, the copy must be done at the highest possible level, and the customer support must be flawless. To increase the chances that this type of product will bring you a lot of money, you need to know how to promote your High Ticket dropshipping products and through which marketing channels. Our recommendation is to use the Google Ads platform because you can run ad sets of properly set up and targeted advertising campaigns aimed at the type of people interested in your product. The Google Ads platform is unprecedentedly the most powerful advertising platform today, and we will talk about it in more detail in a future article.
Let’s get back to High Ticket products now. This is a special look at trade. Most dropshipping businesses are based on selling cheaper products whose prices vary from $ 20 to $ 100 because the logic guides them that it is better to have more people in your online store a week and buy 50-100 products, then to have less traffic where you will have a constant and relatively safe sell of one product. Most dropshipping entrepreneurs are not aware that this one High Ticket dropshipping product can bring you 10 times more profit than a Low Ticket dropshipping product.
To summarize, High Ticket dropshipping products are a type of expensive product where the profit margin can be much more lucrative than on the Low Ticket type dropshipping products.
While this sounds very tempting, you need to know that this business model carries its own risks. Expensive products require consumers with a deeper pocket, i.e., people with higher monthly incomes. This can be a problem for all dropshipping entrepreneurs who do not master digital marketing. Finding this type of people and directing ads to them is not an easy task. This is exactly the reason why most people opt for Low Ticket products.
Remember, Dropshipping’s advantage is that you don’t invest money before you actually make a sale, so why not choose one that has more profit potential?
Why Choose High-Ticket Dropshipping, and What are the Benefits?
We will now talk in a little more detail about why High Ticket dropshipping products are a smart step in your dropshipping business, as well as what benefits they bring with them.
Traditional dropshipping is based on constant testing of cheaper products. First, a product is found that is not saturated, and then it is promoted until the moment when the market for that product becomes oversaturated. High Ticket dropshipping includes dropshipping products that are not so trendy, such as restaurant equipment or electric bicycles, or even stand up paddling board or SUP. The fact that they are not so popular does not mean that there is no market for such products; on the contrary, the market is large for this type of product, but due to its high price, we do not often see this type of product in advertisements.
As a result of this, when you do dropshipping for High Ticket products, your brand and business will face much less competition and remain less affected by trends. This increases your chances of staying in business for a long time.
Customer Support and Lower Volume of Requests
With traditional dropshipping with Low Ticket products, there is a great demand for Customer Support. This process of constant communication with your consumers can be extremely time-consuming. One of the positive aspects of High Ticket dropshipping products is that there are no such high customer support requirements. This helps you focus time on some other important things for your business and improve your dropshipping business’s essential aspects.
High Ticket dropshipping products have higher profit margins. We will agree that this is one of the most important items in every dropshipping business, or better to say, in every eCommerce business.
Are There any Downsides to High Ticket Dropshipping?
One of the most important downsides of High Ticket dropshipping is the high initial investment and the need to know digital marketing. To start this type of High Ticket dropshipping business, you need to have larger reserves of money to invest that money in advertisements, your online store, and the purchase of products.
This type of business model is often associated with more experienced dropshipping entrepreneurs. Although beginners can engage in High Ticket dropshipping, the chances are not in their favor. Once again, it is important to note the need for a high initial budget to be invested in an online store, in a High Ticket dropshipping product, but most importantly, in digital ads. In this kind of business, there is no impulse to buy; people simply will not impulsively invest $ 1,000 in a product as they invest $ 20 in a Low Ticket dropshipping product. When potential customers want to buy an expensive product, they look at everything and absolutely take into account everything from the design and appearance of the website, through other products on the site, domain names, site speed, the way the product is described, the image quality and many other factors. All this affects the potential consumer’s final decision whether to give money to you or someone else.
This is not the only downside when it comes to High Ticket dropshipping products; another one is dissatisfied customers in case of product failure. When someone invests $ 1,000 dollars in a product (or more), he/she wants that product to have no flaws, although this is not possible because even the most expensive cars are not perfect and have customer complaints. When it comes to complaints with a High Ticket dropshipping product, you need to know how to treat your customers, know how to calm them down, and manage the situation. And of course at the very end to resolve the complaint by returning the money to them, or sending a new product. You need to know what is also a guarantee on such expensive products; these are all things you need to take into account if you want to do High Ticket dropshipping.
Sourcing High Ticket Dropshipping Products
You opted for High Ticket dropshipping though, it’s great. Let us now help you find the best way to source a High Ticket dropshipping product to sell.
Focus solely on quality
First of all, you need to focus on quality because when someone gives you a large chunk of their hard-earned money, you have to make sure that the whole process of selling and buying goes perfectly. The best option for dealing with this type of dropshipping is to order the product you are selling and review it in detail to identify all the advantages and disadvantages of your high ticket dropshipping product, so you know what you will encounter in your business. Not only that, in this way, you will be able to do a product review yourself, record quality videos, and take professional product photos. All of this is of great importance when you are in this kind of business.
When a customer gives you $ 500 for a product the last thing they expect is to wait for the product for a month. To solve and overcome this problem, you need to understand that higher margins allow for a premium shipping carrier such as DHL or even FedEx. This way, you ensure that this expensive product arrives in a relatively short period of time, and thus you have one satisfied customer.
It would help if you used only reliable suppliers to ensure a secure purchasing process and deliver products to the end customer. When we talk about products that cost several hundred dollars, or several thousand dollars, then we must be aware that customers will demand that the product be delivered to them in a short time, that they do not have any physical, software or any other damage, and that they last. If we do not provide them with any of these items, we can expect complaints, which we would certainly do if we were in their place. These are resons why we need a reliable supplier with whom we will have great communication and who will also have a reasonable refund policy.
Low Ticket Products vs High Ticket Dropshipping Products
There are many debates about which is the right way when it comes to the dropshipping business. Are they Low Ticket dropshipping products or High Ticket Dropshipping products?
We will now briefly introduce you to the parallel between these two types of products.
If you choose Low Ticket products, you need to know that they have many benefits such as easy transport, i.e., shipping, there is a great demand for them, a large number of this type of product, and many variations. On the other hand, the profit margin is lower, and you need to be aware that this type of business support always has work to do because it is a large number of people who visit your site.
When we mention High Ticket dropshipping products, the good side is the profit margin, which can be over 50% -60%. This leaves you room for further investment, and support is not cluttered with requests, which helps you focus on other important aspects. On the other hand, when we talk about all those negative things that are related to High Ticket dropshipping products, it is necessary to mention that they are related to very narrow target groups and are very expensive. As we have already mentioned, starting such a dropshipping business requires large initial capital.
The smaller market associated with High Ticket dropshipping products is one of the main reasons why most people opt for cheaper products with a larger market. This type of entrepreneur thinks about selling in quantity, and that doesn’t have to mean success. They focus on the wrong goal. If you look a little deeper, isn’t it better to make more money with less effort?
Setting up a High Ticket Dropshipping Store
Setting up a high ticket dropshipping product store requires much more effort than you can imagine. When selling expensive products, you need to build a brand story around them, and the reason for that is trust. Many people think that trust makes them opt for a certain product, and now we will briefly talk about how to achieve that trust.
It would help if you created an appropriate brand identity that will resonate with potential consumers. The product’s purpose must be clear, and the product itself must be presented with style in your online shop. Create a modern and professional logo. A well-made logo can help you develop an awareness of your brand, and people remember a good logo. They connect the brand with it, which is why you need to dedicate as much effort as possible to create a good logo. Another important thing is the website’s design, and especially the color scheme must be taken into account here. Colors say a lot and are one of the main factors that will keep your visitors on the site or cause them to leave your website. The font is also important, and make sure that when you create your High Ticket dropshipping product store, you choose an elegant font that will make visitors to your site feel comfortable and gain trust in your brand because all these items are of great importance. UI & UX is an essential part of the whole story related to the eCommerce business, and whether it is dropshipping or not, it doesn’t matter.
Your webshop is your business identity in the online world. If you think about it, there is no difference between a physical store and an online webshop (except, of course, that one is in the virtual world and is not tangible, and one is in the real world). Yes, it may sound a little weird, but it really is.