For years, dropshipping has been quite a prevalent business model. However, a particular niche known as high-ticket dropshipping has amassed massive participation over the last few years.
If you are reading this, then you are interested in knowing what high-ticket dropshipping is.
In this article, we will discuss what high-ticket dropshipping is, what high-ticket products are, and how to get started in high-ticket dropshipping in 2024.
What Is High-Ticket Dropshipping?
High-ticket dropshipping can be defined as an e-commerce model in which you sell expensive products without keeping an inventory. Simply put, once you get an order, you then forward it to your high-ticket supplier, who then directly ships it to your customer.
What sets high-ticket dropshipping apart from traditional dropshipping is the products marketed and sold. Where regular dropshipping has products with prices set at a maximum of $50, high-ticket dropshipping products can cost more than $100.
Although some say merchants argue that products worth $100 – $500 are not particularly considered high-ticket products, we’ll in this context assume products with prices above $70 to be high-ticket products.
3D printers, simulator equipment, desks, and treadmills are some types of high-ticket products.
Why Consider High-Ticket Dropshipping in 2024?
Larger profit margins. Since high-ticket products cost more than the average, your profit on each sale is likely to be higher than what it would be selling regular products.
When you start high-ticket dropshipping, your competition is less. This is because this form of dropshipping being a unique niche. High-ticket products have a lower volume, so e-commerce stores potentially have fewer customer support inquiries.
It is also a great option for e-commerce stores that utilize SEO and Google Ads. Since high-ticket products aren’t usually impulse buys, e-commerce stores can actively target customers who are searching for those products.
Just as dropshipping has its risks and benefits, there are positives and negatives to high-ticket dropshipping.
For one, high-ticket products mean higher customer expectations. The same expectation a customer has with purchasing a $20 isn’t the same with a $200 product. Customers spending a large sum of money will have a higher expectation of the product and e-commerce store.
Moreover, with higher prices come higher entry barriers. Running a high-ticket dropshipping store is more complex than running a couple of ads to gain visibility.
Selling high-ticket products requires you to develop partnerships with suppliers and manufacturers, create an effective marketing plan, and register a company. Returns and refunds from high-ticket products can cause significant setbacks.
For regular dropshipping companies, a refund is merely a drop in a bucket; however, that isn’t the same with high-ticket dropshipping. For instance, if your customer returns a hammock, you miss out on the profit.
High-ticket dropshipping can also be quite challenging when trying to ship your products. High-ticket products are typically difficult to ship since they are larger and expensive. With such a high price, you will have to consider shipping insurance, taxes, and customs.
These increased costs also come with increased risks. Increased customer expectations, large initial investments, and risk of returns are all part and parcel of high-ticket dropshipping.
How To Start High-Ticket Dropshipping in 2024?
Starting high-ticket dropshipping is similar to regular dropshipping. It is all about finding a product you want to sell, finding manufacturers/suppliers for your products, and marketing them. Let’s begin!
Pick a Niche
The first step to high-ticket dropshipping is selecting a niche or the type of high-ticket product you want to sell. Your niche is defined by the products you select.
When you start high-ticket dropshipping, the last thing you want to do is be an e-commerce store that sells everything. Picking a niche helps you stand out from the hundreds of stores online.
You also want to steer clear of any complicated items like electronics. Complicated items come with a higher rate of customer service calls which can bog down your business process. This is especially true if your e-commerce store isn’t set up to handle such a call volume.
Examples of high-ticket dropshipping items are:
- Men’s clothing: high-end shoes, suits and more
- Furniture: sofas, couches, rugs, carpets, computer desks, deluxe mattresses
- Automotive accessories: car detailing products, car parts
- Health and Beauty: skincare, hair products etc
- Jewelry & watches
Conduct Market Research
This steps is perhaps the most important one when starting high-ticket dropshipping. Picking the wrong products could cause you to waste time and resources.
Without proper market research, you could create your website, set up ads, and contact prospective suppliers, only to discover that you were set up to fail. When conducting your market research, there are a couple of requirements your high-ticket products have to meet.
- The product must be dropship-friendly
- Your target audience should be able to relate to the product
- It must be capable of surmounting brand loyalty and be evergreen
- The product should have more than 10,000 searches per month
- Its price needs to be between $200 and $2000.
If after conducting your market research you discover multiple niches that meet the aforementioned requirements, select one with the highest price point. Choosing the best high-ticket products with a higher price point can increase your profits per sale without also increasing your sales per month volume.
Contact Prospective Suppliers
Once your website has been created, you can begin contacting prospective suppliers to add the best high-ticket products to your ecommerce store. There are a couple of things you need to do to ensure suppliers are more open to accepting you.
You need to have a phone number for your business, a business address, an LLC, and a sales tax certificate. Once you have these, you can start creating a list of potential suppliers. To make the process smoother, you should stick to suppliers that accept e-commerce stores.
You can utilize competitive research techniques by searching for online-only competitors actively advertising on Google Shopping. Your prospective competitors are likely to have developed relationships with reliable suppliers.
You can then extract the brand names your competitors partner with and conduct online searches for the websites. Search for their “Partnership” or “Contact” page. Here, you can locate information on how to become a retailer or dealer. Create a list of 20 to 35 prospective suppliers. The aim is to have at least 3 suppliers partner with you before launching your high-ticket dropshipping store.
High-Ticket Products to Sell
When it comes to the list of high-ticket products you can sell, there are multiple types and niches. The following list combines various niches.
Camping Gear
While camping gear is a seasonal item, having an e-commerce site means you can advertise camping gear—this is especially true if camping/outdoors is your targeted high-ticket dropshipping niche.
Some of the best high-ticket products in this niche are tent equipment, sleeping bags, lanterns, camping chairs, sleeping mats, and air mattresses. You simply need to find a great camping gear supplier that works with dropshipping companies.
Watches and Jewelry
The demand for watches and jewellery has hit an all-time high. Thanks to this demand, and the fact that they are high-ticket products, you can generate decent revenue by selling just a couple of products online.
You simply need to narrow down your target audience and get their attention through ads and other marketing means. What’s also great about this product niche, is that they remain an evergreen product—they can be sold all through the year. You are better off paying attention to fashion trends to ensure your products remain in demand.
Golf Simulator
Before the invention of the golf simulator, the only way anyone could play golf was to be part of a golf or country club. While this sounds simple, membership dues and fees keep this proposition out of reach for most people. Fortunately, the golf simulator brings the fairway to you right in your home.
Golf simulators enable golf lovers to practice their swing right in the comfort of their homes. They are one of the best high-ticket products due to their demand, profit margin, and niche.
Electric Fireplace
An electric fireplace is another great high-ticket product. Thanks to this innovation, customers no longer need to put wooden logs on the fireplace for heat. The electric fireplace, as its name states is electric and has a seamless installation process. It also has a steady rate of demand, particularly in cold climates and countries.
Infrared Sauna Bath Fitting
One of the best high-ticket products to start with is an infrared Sauna Bath fitting. This product utilizes infrared heating technology to cool people down. Due to its considerable price, it is a great item to begin high-ticket dropshipping in 2024.
Customers who purchase this product get a great spa environment right in the comfort of their homes. There are a plethora of B2B companies selling infrared saunas and that makes finding suppliers easier. You simply have to head to Google and search for infrared sauna suppliers.
Where To Find High-Ticket Product Suppliers
The following suppliers can help you start high-ticket dropshipping in 2024:
- AliExpress- largest Chinese B2C e-commerce site that offers a wide range of products
- Gearbest- offers high-tech devices, premium consumer electronics, luxury watches, and fine jewelry
- Syncee– specializes in high-end furniture products with no minimum order quantity
- Spocket– has a catalog of reliable dropshippers in various niches (women’s clothing, watches, bath & beauty, tech accessories, home & garden). Also offers large discounts.
- Local Manufacturers – source high-ticket products from local manufacturers around you. It will be easier to return a product to your local supplier than to try to return it to other dropshipping suppliers.
Tips For Succeeding At High-Ticket Dropshipping in 2024
You should pay attention to the following tips if you want to start high-ticket dropshipping.
1. Select The Right Pricing Strategy
Choosing the right pricing strategy is just as important as selecting the right high-ticket dropshipping niche. Selling the best high-ticket products doesn’t mean you can arbitrarily pick a price point; you have to balance between getting as much profit as possible and being within your prospective customers’ acceptable price range.
How much you can charge is determined by the product’s perceived value and your brand. You can improve your brand by creating a great website with high-quality images and videos, a social media following, and great customer service.
2. Pay Attention To Your Brand
As a high-ticket dropshipping store, you need to pay close attention to your branding. The right branding can increase the perceived value of your product. Customers are more likely to purchase an item if they see it with a relatable logo or brand.
3. Use High-Quality Images For Products
Since you’re selling high-ticket products, your customer base will have higher expectations of you and your brand. No one has ever been led to purchase high-ticket products with low-quality images; they are more likely to believe the e-commerce store is a sham.
There, you need to have high-quality pictures of the best high-ticket products. You can achieve this by requesting your suppliers forward you high-quality product images.
4. Customer Service Is Key
A crucial factor in having a profitable storefront is excellent customer service—this is especially true for high-ticket dropshipping stores. Customers are more likely to reconsider their prospective purchase when buying high-ticket products, compared to products that cost less.
In the process, they will likely have a couple of questions concerning your store or high-ticket products. When communicating with customers, prospective or returning, you should remain polite.
You should be able to answer their questions as clearly and as concisely as possible. To aid in your customer service efforts, you can create an FAQ page full of frequently asked questions that customers have.
Before You Go…
High-ticket dropshipping provides greater revenue potential compared to traditional dropshipping forms.
Reading this guide will show you the advantages and disadvantages of high-ticket dropshipping, provide you with the most effective way to start high-ticket dropshipping, and of course, the right products to sell.
Regardless of the niche you select, following this guide can set you on the right path to a profitable dropshipping experience.
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