7 Signs You’re Ready To Start High Ticket Dropshipping
Is it true that high ticket dropshipping is a business model for everyone? And what does it mean, exactly? Let’s find it out together!
High ticket dropshipping – what is it?
You have probably seen articles and video tutorials with titles like “This is how you can benefit from a high ticket dropshipping store”, or with quite the opposite ones – “Here’s why you should never try high ticket dropshipping!”
And I’m quite sure it made you a bit confused 🙂
What are these bloggers and dropshipping gurus talking about?
High ticket dropshipping means that you’re reselling costly items with the original seller’s price of $200+
So, there’s no real mystery behind this term. It simply means reselling expensive products, and there isn’t even a single opinion on these items’ initial price! Some people say they should cost more than $200, others talk about at least $500, and someone even suggests the $1,000 mark…
In any case, you got it. It’s not your regular dropshipping store where you sell a $2 soap holder for $3.99 and make your profit from tiny yet buyer-friendly price markup. It’s a larger venture with posh products and a much, much higher potential profit margin!
High-ticket dropshipping products can be found in such niches as fine jewelry, art, furniture, hi-tech consumer electronics, etc.
Earlier, we have already reviewed the case study of reselling expensive dropshipping items. Judging by the experience of the store owners we were talking about, high ticket dropshipping opens up really awesome opportunities for entrepreneurs 😉 And if you’re curious to give it a try, let’s see what it takes to sell high ticket products in your online store!
How is high ticket dropshipping different from the regular one?
To begin with, we’ll take a look at the 3 major factors that come into play when you start offering high-priced products to your audience.
No impulse buying
Impulse buying, basically, is the core reason why dropshipping business model exists and thrives.
Ideally, it works like this: you look for adorable, unusual, or really helpful low-cost items, and add them on your website. Your store visitor gets excited and emotional about your products, and places the order with no second thought.
This strategy is perfect for regular ‘undemanding’ items that are easy to afford with any kind of budget. But what about the expensive ones? Let’s refer to YOUR first-hand experience.
What do you do when you need to buy a diamond pendant, or a treadmill, or a cupboard for your own personal use?
That’s right – you start researching. You want to find an item with the best value for money, and your approach is absolutely rational. It’s a large-scale investment of your hard-earned cash, and there’s no room for emotions!
This is why you don’t simply buy the first product you see just because of its beauty or uniqueness. You have a whole set of criteria in your head, and you look for an item that matches them all. And here’s what happens next…
Getting back to your personal experience, consider the following. What’s the first store that comes to mind when you think about buying furniture? Expensive jewelry? High performance laptops?…
I bet you’ve easily remembered well-established brands or stores that offer these items in your area or even worldwide. And here’s the deal: everybody else knows and trusts them, too!
So, your dropshipping business will have to compete with long performing enterprises that have a recognizable brand, a great reputation, and a steady position on the first page of Google search results. Besides, there is something else…
What do people expect when they make purchases from ecommerce stores selling high ticket items? They count on getting much more than just a top quality item meeting their requirements.
Posh stores are traditionally associated with first-class customer support and availability of extra services. Therefore, buying from them, clients want to freely ask any questions about the products’ details or purchasing terms, easily get prompt and polite guidance from the support team, or even request a customized product with a more favorable shipping time.
And why wouldn’t they?
When it comes to rationally justified purchases, customers are only ready to spend a lot of money when they are 100% sure it’s totally worth it. So, naturally, they strongly believe that if there’s anything wrong with the shopping experience they get before or during the order placement, there’s no reason to complete this purchase at all.
So, basically, these are the 3 most important things you need to keep in mind if you want to try yourself in high ticket dropshipping:
- It won’t be easy to trigger impulse purchases
- You will compete with well-established, known, and reputable brands
- Clients’ expectations from your products and customer service will be really high
Actually, you can succeed in this tricky business area with a bit of practice, knowledge, and luck 🙂 Here’s a handy checklist for you: go through it and see if you’re ready to dropship expensive items!
Am I ready to start high ticket dropshipping? [Checklist]
#1 I have a 3+ years of experience in dropshipping
Well, this one is pretty obvious, right?
With an actual first-hand experience in dropshipping, you perfectly understand how this business works, and know all the managerial processes step by step.
This way, it’s quite easy for you to accept and transfer an incoming order, import new products, and launch an advertising campaign. Maybe, you’re even bored with the regular dropshipping routine 🙂 It’s a clear sign that it’s time to take on a new challenge!
#2 In the last year, no more than 10% of orders from my store ended in refunds
In dropshipping, returns and refunds aren’t a big deal (especially if you’re working with low-cost items). But still, the best scenario is to have no refunds at all.
It’s not only about money, of course. If you have a low refund rate, it means you’re good at choosing products and selecting dropshipping suppliers. Plus, it proves your expertise in rendering a first-class customer service, and shows that you’re ready to up your game.
#3 I have at least $500 in savings
Why would that be necessary?
Well, it will be important for you to cut down the order processing time and speed up all the following actions to improve the clients’ shopping experience.
It means that you’ll probably need to pay the supplier for the ordered products before you have the buyer’s money processed by the payment system. It’s not a common situation, but it may happen – and it’s vital to be ready for it.
Plus, you still might need to arrange refunds (ugh!) or to buy sample items for yourself to check their quality and the suppliers’ business practices. In any of these cases, a spare fund is a must-have.
#4 I know how to create a business brand
You’ll have to compete with top-class industry players, remember?
What’s your experience of building a vibrant community of your store followers on social media? Do you understand how to make all the numerous elements – from your store name to its design – work together to create a winning image?
It takes time and patience to build a brand that speaks for itself, but as long as you have one, you’re unstoppable!
#5 I know what an optimized store means and how to make one
What kind of a website do you need to dropship high ticket products?
Surely, it must have a professional and trustworthy appearance, a convenient navigation, a user-friendly layout, the right set of payment gateways integrated, a proper loading speed… All these aspects are crucial if you want to motivate your store visitors to stay longer on the website, and to convert them into buyers. And actually, we can help you with this 🙂
#6 I know how to advertise a store on a pro level
Even if you have an absolutely stunning website with a unique and memorable brand, it might take you quite a lot of time to bring it to the first page of Google. It’s already taken by the industry giants, right?
So, most likely, you’ll need to look for other ways to make your store known and interesting to your target audience. Any ideas?
#7 I know what I’ll be selling online
If you want to launch a high ticket dropshipping store, you need to fill it with expensive high-quality products that have a limited availability in other online and offline stores. Otherwise, what will be the client’s reason to order these items from you, and not from your long-standing and well-reputed competitor?