dropship
Let’s talk about high ticket dropshipping versus low-ticket dropshipping products. Ill also go over my predictions, these are the top 10 best products for high ticket dropshipping in 2020
I am a big fan of high ticket dropship because the reward is so much sweeter for putting in the same if not less amount of work. Just saying 😉
Definition of high-ticket dropshipping
the definition of low-ticket dropshipping, the pros and cons of both high-ticket dropshipping and low-ticket dropshipping, some of the additional benefits that come along with high-ticket dropshipping.
So the definition of high-ticket dropshipping is selling products for over $250. Now, there’s really not a price ceiling here. I’ve have sold products for over $5,000, but in general we’re looking at anything above $250. So that means low-ticket dropshipping, you are selling products at a retail price, meaning what you charge your customers, for less than $249. Thats a nice starting point at $250 to keep your minimums at.
How does Dropshipping work?
How to transition from low-ticket e-commerce
I’ll show you how to transition from low-ticket e-commerce to high-ticket e-commerce dropshipped products, and the best products for high-ticket dropshipping.
You will need a Shopify store or at least should be using the easiest CMS to build a store on. Shopify is a smooth way to host and grow your dropship store.
So let’s talk about why we do high-ticket dropshipping and the pros and cons of high-ticket dropshipping compared to low-ticket. And the best way I can just show this to you is, let’s say I was gifting you an actual store, like a retail storefront, and let’s just say I gave you an option.
The example
You can have a Dollar Tree, which is a store that sells everything for a dollar, “or you can have a Design Within Reach store,” which is a high-end furniture store where I would have to assume their average order value is over $3,000. So if you could choose one, which one do you want? Well, if you think through this at all, you would choose the one that has an average order value of thousands and thousands of dollars. Now, why is that? Because it makes more money.
When people come in and buy something, you get paid. It’s a much more profitable business than having a bunch of people come through your store every day, buy 20 items and give you $20, and the next one, and the next one, and the next one. No, you’d rather have a few customers come in, spend big money, where you actually can earn a real profit. So this is the idea.
Whats The Risk With High Ticket Dropshipping?
This is why we want to focus on high-ticket things. And you may be thinking, okay, but isn’t a negative thing with high-ticket dropshipping the fact that it is just a more expensive business to get into? I could see myself possibly selling low-ticket products because where’s the risk?
Whereas high-ticket products, it’s a different game. And that’s true, but this is the beauty of it. What I’m giving you right now in education is basically the option of telling you you could have either of these.
Both will cost money to start, heck look at my basic expense log for building this brand the ClickBucks brand.
If you’re going to do this, if you’re going to build a dropshipping store, and you’re going to put your time into actually making one of these, why not put your time into the one that has a bigger potential, that has a bigger upside, the one using high-ticket dropshipping? ‘Cause remember, the beauty of dropshipping is you’re not laying out any money before you actually get sales.
You’re not buying this inventory until the customer pays you. So again, you have this choice and I am giving you this decision, for which one you wanna build, and why wouldn’t you choose the one that has a higher profit potential? Now, when you think of it a different way, with the pros and cons of high-ticket dropshipping versus low-ticket dropshipping, we can just compare and contrast two different products.
On the left we have cellphone cases and on the right we have a stand up paddle board. Now let’s look at each of these in a little more detail and let’s just say you wanted to dropship low-ticket products, being the cellphone case. Well, with cellphone cases, they’re easy to ship, there’s a huge demand, and there’s lots of styles and variations. So that could be thought of as pros to dropshipping low-ticket products.
Whereas with high-ticket dropshipping and a product like a stand up paddle board, they’re large and heavy to ship, they’re expensive, and there’s a smaller market, meaning that there’s a lot less people that wanna buy a paddleboard than the amount of people that wanna buy a cellphone case.
And because of that, most people gravitate towards the low-ticket products when they’re getting into e-commerce and dropshipping, and they choose something like cellphone cases to dropship. And here’s the thing. That is not what you want to do because high-ticket drop shipping actually gives you the ability and the ease to sell less and earn more. And it comes down to a very simple equation that I call units sold versus profit. This is very important.
“When I first realized this it totally changed my business. I was busting my hump to sell these $7 and $9 doller trinkets when I switched to selling $499 products boom! everything came together” - Clickbucks Founder Shenzu
Dropshipping Comparisons: The Nuts & Bolts of it
We have cellphone cases and stand up paddleboards. Then we have the sale price, and we’ll just use round numbers here to make math easy. And for cellphone cases, the average retail sale price is $10. stand up paddleboards, closer to $1,000.
Now, if you do this right, if you build a dropshipping store using my methods here you can get decent profit margins of 25-40% on most orders.
Again, we’re gonna use round numbers for simplicity. So we’re gonna say a net profit of 30%. That means profit per sale, every time you sell a cellphone case you would keep $3 as that profit, and every time you sell a stand-up paddleboard you would keep $300 as net profit for the same amount of work.
And understanding this concept and using it in your business, again, dollar store versus Design Within Reach, once you can leverage this and you can make your whole business about high-ticket drop shipping and high-ticket products, you will be well on your way to being successful with this whole business model.
Let’s just do an example here, and we’ll use these same two products. And let’s say you’re brand new to all this and you say, “You know what, mate? “My goal for my target monthly profit, “net profit, is just $3,000 a month. “I want an extra $3,000 a month in my bank account.” Okay, well, let’s look at our examples.
I haven't even touched on building email marketing lists for your store. This just explodes the earning potential.
More In-depth with Drop Ship Numbers
If you want that with cellphone cases, you make the $3 a sale, and if you make 300 with stand up paddleboards, how many units, how many sales, would you need each month to reach your target monthly profit? Well, with cellphone cases, you would need to sell 1,000 every single month, whereas with paddleboards, you would only need to sell 10 units.
That’s like one sale every three days. And if you’ve ever been in sales or customer service before, you know that 1,000 customers a month, it’s enough to make you pull your hair out. It’s enough to have a headache.
It’s enough to need a team to support. On the other hand, 10 sales a month, a sale every few days, you can easily handle that on your own, and again, you’ll be making the same amount of money as the person doing low-ticket dropshipping that’s pulling their hair out, thinking, why did I even get into this business? Go with high-ticket drop shipping.
You will make more money per sale.
Imagine all your competitors doing as much or MORE WORK than you and getting a quarter of the profit margins that you get. INSANE but reality. If you stick to the maths and stick to the method it works. Plain and simple.
It’s pretty obvious that high-ticket dropshipping is better than low-ticket. And here’s just a few of the main reasons. The first is that there’s less customer service, and that’s because you’re having fewer customers, and fewer customers is a good thing.
You’ll have fewer orders but make more money. You also have fewer orders to process, so again, it takes less time to run the business, and one of the huge benefits is that it’s easier to buy paid traffic.
I’m a huge fan of paid traffic, and when you’re not making much money per sale, it’s almost impossible to do this profitably. Let’s look at this example where we have our cellphone case and our paddleboard again, and we’re looking at how many units we would need to sell.
So 1,000 cellphone cases or 10 stand up paddleboards. Again, this is to reach our target monthly profit. Now, our conversion rate with a hard focus on ROAS and our conversion rate of approx 2.5% (minimums) means you would need 40,000 people to visit our website every month to get 1,000 sales. Whereas with stand up paddleboards, we would only need 400 targeted visitors.
And if you have to spend money on 40,000 visits, you know how expensive that is. You know it’s gonna be next to impossible to have a profit at the end of the day. But 400 targeted visits, anybody can get that to their website.
It is not that hard if you have a system to follow.
I hear from a lot of readers about the store they own doesnt convert, it doesnt work, the layout is wrong and it just might be. Who knows what the correct most 100% foolproof layout looks like? not me no one does. This is a unicorn.
BUT! We can work towards optimising for success.
Read: How To Start A Blog How To Start A Dropship Store
Some even more common problems:
- My store’s not profitable
- Facebook Ads profitable.
- Customers aren’t happy
- Shipping’s taking too long.
What can I do? Well, the good news is, if you already have a Shopify store set up, you can transition from low-ticket to high-ticket.
My advice is, if there is a higher-priced product range with what you sell, move up the ladder and aim for higher margins and higher sales numbers. Focus on the more expensive products and phase out the low-ticket ones.
Now, maybe you can’t do this. Maybe what you’re selling does not have a high-ticket price range product line. And if that’s the case, then my advice is just go ahead and build a brand new Shopify store using your knowledge for how you built the first one, but focused on a high-ticket niche, and focus on going with where the real money is and where the real opportunity is.
Now, if you wanna know more about the best products for high-ticket dropshipping, the products that fit my niche criteria for high-ticket dropshipping, follow this article further down and get more insights on profitable niches. The riches are in the niches.
Best Drop Shipping Products
I tried hundreds of products, bizarre products, very obsscure products and mainstream products to bring this niche guide to you. I failed on 7/10 of the trials but by no fault of my own than saturation and lowest prices being my biggest competitors. It turns out obscure niches and bizarre products have competition as well.
I didnt pick my battles. I was doing this in my limited spare time. I also couldnt give the ad campaigns enough love for them to out perform competitors. A damn shame because it was really fun working on some of the creative for these weird niches.
The products and niches Ill run through now are not the absolute must use niches or products but stable and opportunity is there in all outlined below. The key is finding the best trageting, the best messaging and then standing out against a lot of competition.
I also love the opportunity of the upsells and cross promotion. You can flog the base models and then make that paper by upselling accessories and add on attachments.
What I mean by base models is that a big complicated product is gonna have quite a lot of different complications so having that it’s a simple base model in other words the customer can order just one easy to understand product without having to know how to choose a bunch of different upgrade options in order to buy it in the first place that makes the buying process a lot easier.
Simplify everything in your sale sprocess.
okay so you want simple base models and you want upgrade options as well so you want to have like three to five upgrade options and you can find all this through competitor research okay just look at your competitors sites especially the older sites and making sure that they have simple base models with great potential in other words there’s not upgrades that are required to be chosen in order to purchase
okay next recognizable brand names a lot of people like to sell generic brand names but the problem is that there are a little bit generic sometimes the keywords can mix in with generic keywords and as long as the brand name is a unique word it’s not a generic word then that’s good that’s enough to use.
For the SEO nerds you may want to get that naming convention dialled right in for maximum SEO juice and visibility for your product.
We want those unique words so that we can target those with SEO target them with paid advertisement next we want to make sure that the niche has model names and SKU numbers for the products.
Doing this is key for targeting with SEO and for paid advertising because you will be targeting the bottom of the funnel traffic but those the SKU numbers in various methods in order to get those buyers to your website to make that work.
Ecommerce Brands & Dropshippers LOVE Shopify
Generics and Extended Product Opportunities
The best high ticket product sales will involve both simplicity and complexity in the product function and customisation, weirdly they are different but work together for this example so well.
You should be looking at this next step with two lenses.
1 how simple is this product
2 what extensions, add ons and accessories can I bundle
You want a simple product because getting started simplicity is everything. Keep it super simple the KISS method. Make some sales understand the sales cycle, your buyers, the support requests and returns etc so you are all over your simple products.
Then when you have some experience with the product, the supplier, the customer and all the parts involved in the sales cycle you can start pivoting.
The pivot is crucial in your store's revenue growth.
When you pivot you start looking at that simple product with fresh eyes. You will start thinking and looking out for the following questions.
- What can I customise [with| on| for] this product?
- What can I add to extend the use of this product?
- What can I bundle this product with for more sales?
- What accessories does this product best work with?
All really good questions and are contributors to making you more revenue per sale. These can help play a role in converting those more seasoned buyers and those who may be on the fence and want a little more value or usability.
Common problems with extended functions, addons and more are the supplier policies, supplier warranty, supplier chargeback and the sales cycle.
With extended products with attachments, extensions, add ons and what not they are more difficult to learn to sell and to serve to customers. Understand that complicated is not necessarily bad, complicated products can be good electronic products can be very good.
To master the sales cycle you have to learn about them you have to read buying guides, and have to read manuals. You have to you know & understand the supplier's websites and how the products work together and they’re gonna be more difficult to learn how they work and to be able to sell and obviously to be able to serve with customer service support and warranty support.
The challenge is real when running a business. Its not all revenue and laptop lifestyle. The most draining but also rewarding part is customer support and equally customer success. When you have a customer complain that things didn't get delivered or your product broke when it was being unboxed it is would crushing. But on the other hand when a customer emails in and tells you of their story searching for your product and how much it helped them you really feel like what you are doing is for the right reasons.
What You Can Do To Keep Customers Happy and Buying More?
Start by identifying who your real target market is and really focus on the target markets you want to serve. Some are going to be willing and able not just able to buy now. Most are willing and not just ready yet, they need more convincing. If you can convince them that your product and your store is right for them you will convert them again but it's the trust and loyalty factor that keeps them coming back unassisted.
You can target and convert both but they got to be able to pay with either a credit card or a debit card for your product so you get paid right away that way and there are no confusions the target market that is in the baby boomer generation is the best.
You don’t want to sell young people because they’re very fickle they don’t have a lot of money usually and they’re very impatient. This leads to negative reviews and chargebacks.
My Mantra is to sell products that have high margins.
One key element to keep watch on when finding suppliers is if they use MAP policies. You really only want to work with suppliers and niches that have Map pricing, okay ideally higher-priced products will have lots of suppliers at Map pricing.
MAP stands for minimum advertisement price and that’s what you’ll see in the ads and on the product pages okay Map pricing evens the playing field especially against bigger older retailers so you’re gonna have a hard time competing with.
Having a database of suppliers and potential suppliers is what will fuel your store's growth. If you can offer more brands, more products you have MORE CHANCE of getting sales.
If the niche you are targeting has limited suppliers then you should plan for that and the possibility that that's the limit of suppliers you can engage with. I would also consider if it is a small number what happens with COVID round 2 and so on will you still be able to operate? great question. Plan ahead.
The Best Industries To Dropship
Older industries and technologies are much better than younger ones. It's interesting when you deal with suppliers and manufacturers in younger industries you get a lot of attitude but there's always a process on their end that's still being figured out. It's just an interesting comparison to observe working with time tested professionals and the new up and comers.
The point here is it can be difficult to really sell and support products in younger industries because the backend may not be technically fleshed out with every detailed item that you might see with older industries. The products sell based on trend, clout and hotness in the market you won't need to break a sweat selling these new fad style products. You will break a sweat trying to handle customer support.
I have come across a lot of issues with the product quality for younger markets. Like the demand is so great you could say that some corners are being cut and I'm not outing anyone here we all make money from this exchange but I see a higher support request frequency from younger product markets. The suppliers aren’t as established so they aren’t ready to provide that battle-tested support service.
Best Places To Advertise Dropship Products
lastly, products that are able to be advertised on Google Shopping to Facebook goes without saying one of our biggest most profitable ad revenue platforms is Google Shopping, Pinterest and Facebook ads as well so you just want to read through the Google Shopping terms and make sure that an issue you’re considering is actually able to be sold through Google Shopping.
One challenge I face selling supplements and vitamins is Google shopping policies and changes to the ad platform compliance terms. The hoops you have to jump through to sell supplements with paid ads is crazy but if you get it right the competitive advantage is yours.
The Hottest Product Predictions For High Ticket Dropship
I’ll now go over the top ten niches just by searching them in Google so you kind of get an idea of what they look like and the different websites that are selling them so here we are the number one niche that is pretty popular right now meets all those criteria and what not.
Golf Simulators
Golf simulators have been huge for me with people in lockdown. Home golf vs on green golf is the new reality for some people and these simulators have been in high demand. For a high priced product, this qualifies, for a low return rate, this ticks the box for me.
Taking the actual simulator and bundling in some accessories you have a really sweet sale package right there. If you can create a store that's golf focused you will be a contender here. Id also point out that indoor golf is a new up and coming term to optimise campaigns for because the COVID has people locked up at home.
Trends for this product would be virtual golf, live stream golf, golf with buddies via video stream or video conference call type targeting. This is a solid product to dropship.
Kegerators
I don't sell many of these in my stores I'm not much of a drinker, but in my JV stores we have some luxury home decor and outdoor entertainment-focused products and this slots in nicely.
If you nail the targeting of people who are the best shopper for this product they pretty much sell themselves. They have a very specific function and are a great sale item.
You won't run into any alcohol restrictions with this product because it's not directly alcohol. Any alcohol products can be tricky to run paid ads for.
Trends for this product could be summer, luxury home, outdoor entertainment, parties, bucks do's and bachelors.
Sorry guys this one is not my strong point I've never used one. We sell a few of them and Id have to ask my business partners what you actually do with this lol.
Steam Showers
Now this one I can give you the ins and outs top to bottom product report. This is something I really enjoy selling and we get so many positive customer emails about the showers.
I really like selling these product types for three reasons:
- They are so good to use
- They make a crap tonne of profit per sale
- Customer feedback is legit
I like that they look unique like no one you know has this as a standard shower in their house. The products are big but not too big that people don't purchase them. I see sales of approx 1 per week, in winter I think we were doing 2 a week without advertising just from SEO and product placement on the store.
Leveraging customer reviews was the best thing we did with this product type. You could do a discount straight up to get 3 or 4 reviews and then raise the price and bank those reviews to sell the legitimacy of the product. A great tactic that has worked really well for me.
Trends with this product would be a healing shower for sports aftercare, weight trainers, the chill crowd, warm showers on cold nights and taking the luxury self-care approach.
Infrared Sauna
Sticking to heat healing and self-care I really like promoting this product because another one that just sells itself with a couple of customer reviews. We ran a loss leader deal where it was just a bit more than cost price for 6 buyers and once we had those purchases we hit the customer reviews hard and 6 for 6. This helps build trust in your store and in your product quality.
Running cost price (or thereon) is the best way to get those first reviews on the board so you then have social proof. This worked really well here as well.
Infrared saunas are quite popular, expensive and profitable. This is a great niche to get into where you can sell a couple and make great revenue. You also have a great inroad with the manufacturer to bargain better deals on volume sales. The volume here doesn't need to be crazy high because they are quite expensive.
You will have a lot of competition, but generally, its competition that's static and not dialled in. You will learn how to really dial in your ad targeting and messaging to beat these static vendors every time.
These are big products that serve people with specific pain points or desires. You would craft messaging around these pain points, desires and the solution. It will be a big purchase and will take some convincing so be prepared to have a really informative sales page to help get your message across.
Electric Fireplaces
One more warm cozy product in this group is the electric fireplace. These are great for a lazy butt like me I have no interest in chopping firewood so this for a lifestyle approach works. My girlfriend would argue that she prefers the smell of a woodfire and you don't get that with the electric fireplace.
These fireplaces look pretty cool with a low care requirement for the owner. That's the lifestyle appeal to go for in any advertising targeting.
High price tag check
Low buyer maintenance check
Easy to ship check
These have all the requirements for a big part of your store if you get the ads dialled in. People want these fireplaces and there's a backdoor opening with home stylists, architects, builders if you can get in with them you can get them buying from your store directly. I'm giving away the farm here with this tip but I give them a preferred trade agreement rate and they love it, so much they tell their industry buddies and help me build my customer base.
Electric Full Body Massage Chairs
Auto electric massage chairs are awesome, I have one of these and it really does get you relaxed or treated if you have some aching muscles. I love it and Im using mine about 5 nights a week.
These are big expensive and easy to buy at various price points. They also have various marketing angles you could sell them with messaging for a lot of different customer avatars.
These will have niche sites pop up and look like they are highly competitive but really the ones you will come across wont be amazing, optimised or doing solid audience targeting.
These will need to have some more touch points than just advert to landing page and a conversion. This needs warming up, social proof, info articles and maybe even guides before you get the sale.
Massage Tables & Accessories
This is a slow creeper trending niche. COVID gave it an extra push and now its really taking off.
Massage table is very similar to massage chairs but a little bit different target market here. These are popular for several markets and avatars if you can find messaging that connects with the audience these sell themselves. They also allow you to have a bunch of accessories and bundles.
These are easy to transport, can be stored easy and have multiple moving parts. Unless you buy the sturdy table types.
I really like this as a evergreen niche because everyone needs relaxation, pampering and no better place to be pampered than in your house.
Wine Coolers
wine coolers are definitely profitable they’re a bit more competitive but it doesn’t mean you can’t compete so it’s stupid some of the websites right here that seem like niche stores one quarter city differently a new store and Shopify with the bats and sounds like yeah but but why enthusiasts I believe is actually a manufacturer or distributor or something direct so thanks for that fact this is actually one of my clients stores they’re good for clinic back in the day they sold it and something else no you can adapt adjust it all right
Humidors
humidor is are pretty unique product and may or may not know that they make it good I take a drop shipping eesh what they do if you’re looking this one first passing the doors wanna see too many other humidor specific stores but it’s a grind florist.
There are heaps of accessories and bundles that can be added to this product and the real enthusiasts will be all in on having the best setup for their buddies.
Games Room Sports Tables
One niche thats never been a focus of mine is games room tables. I spent a lot of time in arcade gaming tables, arcade games but never the actual games room tables.
After some looking around it really does have its own opportunities. I think with COVID forcing millions of people to stay home and with TV entertianment drying up the games room is now a very popular place to keep entertained.
These are big heavy tables. They dont require a lot of touch points in teh sales cycle, this one is where someone knows what they want and you need to be there when they make the decision. Google Ads will be a great way to get in front and center for this product promotion.
Types of Tables:
- Poker tables
- Ice hockey rink tables
- Ping Pong tables
- Beer Pong tables
- Foosball tables also soccer
- Arcade gaming tables
- Life size chess floor covers
- Tiny model train or action figure tables
There are hundreds of gaming table top combinations. These sell really well and they are trending so I would keep this niche in your mind. It's not over competitive but there are some huge sporting stores that will be in the SERPs keep that in mind.
that’s the top 10 list of niches just gonna go over them again really quick first is kegerators and infrared saunas steam showers massage chairs electric fireplaces golf simulators massage tables wine coolers humidors cigar humidor game room tables alright guys I really hope you enjoyed the guide and now have some ideas for niche selection for your high ticket dropshipping store.
