While dropshipping is not a new concept in the eCommerce industry, its trends certainly keep changing. The latest in the news is the principle of high ticket dropshipping that focuses on selling upscale or expensive products.
Since it can lead to a better profit margin on each transaction, it’s gaining a lot of traction. Find out more about the high ticketing concept in dropshipping and how you can benefit from it here.
To start with, let’s try to understand what high ticket dropshipping is all about. Ideally, in this, we host an online dropshipping store where a third-party vendor performs the order fulfillment operations. Now, instead of selling low ticket or inexpensive products, the store has a niche-specific catalog of selling expensive products.
While the traditional dropshipping model is based on the trigger or instant buying decisions of customers, high ticketing is not the same. In this, you need to focus on your content and marketing strategy to educate your audience in helping them make the expensive purchase.
Let’s understand its benefits by considering an example. If you are selling phone covers for $10 at a 30% margin, you will make $3 for each order. On the other hand, let’s assume you are selling a high-end product like a paddle board. Even if you sell a single paddle board for $1000 for a 30% margin, you will end up earning $300.
Needless to say, the net profit that we make even on a single purchase of an expensive product is exponentially higher. That’s why people are tapping into high-end marketing with their dropshipping stores these days.
Just like any other business model, high ticket dropshipping also has its benefits and limitations. Therefore, before you get into this business model, consider its following pros and cons in advance.
- For each sale, your net profit margin will be extremely higher than the traditional model
- Since it is a more niche-specific industry, you can design a better marketing strategy.
- Even with limited customer support, you can provide a better experience to your audience.
- Overall, it is a low-risk business model that you can easily sustain in the long run.
- As you are dealing with expensive products, there is a higher risk with their delivery, maintenance, and overall cost.
- If you are new to dropshipping or online marketing, then it can be tough to crack this niche.
- Initially, you will need more funds to set up a sustaining model with premium websites and services.
If you are just starting, then finding the right products to sell on your dropshipping store can be tough. Therefore, you can consider following these tips to handpick high ticket dropshipping products:
At first, you need to start by identifying some niche markets and industry trends. As you dig deeper, you need to have threshold for the value of product you want to sell. For instance, you can try to host products in a range of $200 to $2000 in your store.
Focus on high commissions
Just before you are selling expensive products, it doesn’t mean you will make more money. At the end of the day, it all comes down to your commission. That is, the higher commission you have, the more money you make. In some cases, high ticket sellers even end up making 20-30% commission on a single sale.
Do your bit of research
If you don’t know much about an industry, then you should certainly do some research before hosting a dedicated store. There are tons of free and paid online tools that can help you with marketing research.
One of them is Google Trends, which will help you identify some of the most in-demand and trending products. Apart from that, you can also take the assistance of Google Analytics’ Keyword Planner to look for keywords searched by your target audience.
Watch your competitors
Needless to say, once you have selected a niche, I would recommend doing in-depth market research. In this way, you can easily identify some of your top competitors in the market.
You can further make a list of the products they are hosting and what kind of campaigns they are hosting. If you want, you can even do some social listening to identify the pain points of their customers and try to cater to them with your superior services.
Find the right dropshipping platform
Last, but most importantly, you need to use the right dropshipping platform from where you can source high ticket products. While there are plenty of options out there, I would recommend using DSers. It is the official AliExpress dropshipping solution that supports leading eCommerce platforms and is equipped with tons of features.
Great! By now, you can easily understand the benefits of high ticket dropshipping and how to find the right products to sell. Once you have set up your dropshipping store, you need to be quite bullish with your marketing practices. Here are some of these expert tips that can help you get more out of your marketing efforts.
Tip #1: Set up a marketing budget in advance
Before you start putting any effort into your high-end dropshipping store, you should come up with a marketing budget. Even though this can be subjective, but marketing high value products will need more money too. Therefore, you should consider having a rough budget in advance so that you won’t end up overspending.
Tip #2: Identify your target audience
Most newbies make the rookie mistake of starting their marketing campaigns without knowing their target audience. It is recommended to come up with customer personas in advance. You can also target your audience based on their location, age, gender, and other details.
Almost every online tool (like Facebook Ad Manager or Google Ad Manager) has dedicated options to target our audience. Using these inbuilt options, you can instantly filter out your audience and improve the ROI of your content.
Tip #3: Focus on content marketing
When it comes to selling high-end products, your content can play a vital role. For instance, you first need to educate your audience about the unique selling points of the product. In this way, you can create awareness among your audience that can eventually lead to better conversion.
Not just that – content marketing can also help you improve the overall reach of your brand. It can be an excellent tool for organic marketing and also boost your SEO efforts.
Tip #4: Run PPC Google Ads
You might already be familiar with Google Ads and how they can help you reach out to your audience. Therefore, you can consider running up numerous ads on the Google platform (search, display, or even YouTube). In this way, you can instantly reach out to your audience and get more results with minimum effort.
Tip #5: Leverage the power of social media
Most importantly, make sure you have a significant presence on social media. Remember, you don’t have to be active on every platform. Even if you are active on a single platform that is relevant to your audience, it would be enough.
For instance, if your target audience is working professionals, then you can be more active on LinkedIn. Similarly, if you are selling products related to beauty or lifestyle, then being more active on Instagram is a better option.
Finding the right products to sell is one of the major obstacles that people face in high ticket dropshipping. To overcome this challenge, you can simply take the assistance of DSers, which is the official AliExpress dropshipping solution.
Get Started Now to Grow Your Online Business with the Best AliExpress Dropshipping Tool - DSers!
- On DSers, you can explore premium products listed by thousands of trusted sellers in different categories.
- You can also instantly find the best-rated supplier for any product via its unique Supplier Optimizer feature.
- With its advanced options like automatic tracking of order statuses, you can also keep your customers informed about their purchases.
- DSers offers tons of other features like bundled products, bulk purchasing, affiliate marketing, stock management, and so on.
- DSers is the official AliExpress solution and is fully compatible with platforms like Shopify, WooCommerce, and Wix.
I’m sure this guide would have helped you understand the concept of high ticket dropshipping and its benefits. To make things easier for you, I have even listed its pros, cons, and some expert tips that you can implement.
Though, if you are searching for some smart products for your dropshipping store, then simply explore DSers. It is one of the best places to find high-end products to sell and even manage your dropshipping store.