High Ticket Drop Shipping


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High Ticket Drop Shipping

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Most people starting out a dropshipping business want to avoid high start-up costs and take minimal risks with their products. This has led to the popular strategy of buying low-cost products, with the lower costs reducing the risks – if they don’t sell, then your loss is much smaller than if you had purchase higher costing products.

These costlier products, known as high-ticket products, require a much higher investment, immediately increasing the outlays from the offset of the business.

You can quickly spend a fortune on these products, and if they don’t sell, then you are left with massive losses, which is why so many experienced dropshippers recommend that you avoid buying them when starting out.

However, with higher risk comes higher reward, meaning you could end up with much higher profits when successfully selling high-ticket dropshipping products.

Combined with the fact that low-cost products are in such high demand that it is an incredibly competitive market, it becomes clear that buying and selling high ticket drop shipping is often worth pursuing.

Of course, you need to implement the right strategy for this to be successful! Check below for all the tips you need to know how to best use high ticket drop shipping strategies for your business:

What is a High Ticket Product?

In dropshipping, a high ticket product refers to any product that comes with a high price point. There are many products that fall into this category, most typically tech products, furniture, and high-end jewelry and fashion products.

While the cost of buying the product is higher compared to many cheap products, the return on investment is also much higher. Sell multiple high-end products from your dropshipping business, and you could make a lot of profit in a short time.

What are the Pros and Cons of Selling High Ticket Products?

Selling high ticket drop shipping products isn’t free from risk, so let’s take a look at some of the main pros and cones of pursuing this strategy in dropshipping:


Fewer Products to Sell

One huge advantage of high ticket products is being able to sell fewer products while sustaining your profit margins. You can sell far fewer high ticket products than low-cost products and still get a good return on investment, making it much easier to maintain and lot less stressful.

You only need to focus on marketing and selling a few good products rather than trying to manage dozens of low-cost products.

Imagine you want to make £40,000 per year in sales. If selling £40 products, you need to sell 1,000 of them just to hit your goal! Compare that to selling a few £400 products – you’d only need to sell 100 over the year to hit your goal.

Less time, effort, and resources go into promoting fewer high ticket products, saving you a lot of work over the year than if you had to do the same for hundreds of low ticket products. 

Higher Profit Margins

By focusing on selling a few higher-priced items rather than multiple lower priced items, you can expect a higher return on investment (ROI).

For example, take a 30% profit margin gained on products from drop shipping. Using this, let’s compare selling a £10-£20 product like a phone case to a £500+ product like a designer handbag.

You get 30% of profits for each product, yet one nets you a significantly higher amount than the other. In this example, you would need to sell dozens of phone cases just to reach the same profit from selling a single handbag.

Simply put, you can expect much higher profit margins when selling high ticket items over low ticket items. If you want a scalable business model that allows future growth, then high-profit margins are essential, so high ticket items are necessary for any drop shipping business that wants to grow.


Risks of Transporting Goods

Unfortunately, high-value goods are more susceptible to issues during transit, posing a big risk for any drop shipping business focusing on these goods. Theft is a common problem with high ticket products, as is accidental damage, so it helps to mitigate these risks through things like insurance and choosing reputable shipping services.

Higher Outlays

As you can imagine, higher-priced goods also come with higher costs for the seller, including procuring the products. Initial investments are much higher for high ticket goods compared to low ticket goods, meaning you need some capital, to begin with.

Another problem is that the products come with a higher expectation of quality, so you usually need to offer some form of warranty, which can further increase expenses for the products. Warranties are essential for building trust with customers, so you can skimp on this with high ticket goods.

Tips for Selling High Ticket Products Online

If you are thinking of selling high ticket products through your dropshipping business, then here are some tips that might help:

Reputation is Essential

Nobody is going to buy high priced products from an unreputable seller, so you need to take time to develop your brand and build trust with consumers. Start with a professional website, make sure to focus on the right marketing strategies to build your reputation with new customers, and always have the necessary certifications to show you are trustworthy.

Social Media is Your Friend

Social media marketing is the most powerful tool for selling high ticket products. You can use it to build the right brand image, engage with consumers, spread brand awareness, host giveaways, and link to your products, so make sure to take advantage when developing your marketing campaigns.

A Good Blog Goes a Long Way

More content means more value for consumers, so by running a regular blog post, you can maintain a strong relationship with returning and future customers. It’s a great place to build your brand and company value, while also running competitions like giveaways to encourage brand awareness.

A Premium Store is a Must

A drop shipping business is only as good as their store, so make sure you are putting the time and resources into developing the best storefront possible. Your store reflects your brand and products, so if this is lacking, then nobody is going to want to buy high ticket goods you sell.

Find the Right Drop Shipping Supplier

Of course, a good drop shipping business lives or dies by its supplier, so make sure to choose the best dropshipping supplier possible! Many have high ticket products for reasonable prices, so don’t just settle for the big hitters like Alibaba and AliExpress, as there are plenty of other options out there too.

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