You might not have heard of high-ticket dropshipping or low-ticket dropshipping. Even though these plans are easy to understand. Before you start your retail dropshipping business or take the next step to add more products, you need to decide what price range you will work with.
In a nutshell, we can say the following to explain the difference between the two plans:
- Low-ticket dropshipping is when you sell cheap items with a high price margin.
- High-ticket dropshipping means selling expensive items with a small profit margin.
The income can stay the same or even go up if you use the high-ticket dropshipping strategy, even if you sell less. But there are more parts to the dropshipping recipe, and you need to think about more details to make it work well and make you money.
More about Dropshipping with High-Priced Items
Selling higher-priced items had to be the same as selling high-end, premium items. But even if you are putting a high markup on your products, don’t price them too high.
This way of doing business has the potential to make a lot of money. Keep in mind, though, that high-value items are harder to sell.
With marketing, you only need to reach a smaller number of people for high-ticket dropshipping; you just have to target them well. Also, you need to convince fewer people to buy with this model, since you can make more money from one buyer than from 30 buyers with the low-ticket model.
You don’t have to always get people to buy from you often, because with high-ticket dropshipping, you can make a lot of money from just one order. You also sell expensive items that can be used for a long time. It gives people what they want for a long time.
When people want to buy expensive things, they think about it for days or even weeks. To keep your visitors from leaving, you need to give them as much useful information about your products as you can. This will make them more likely to buy from you. Answer every question they might have before they even think of it.
Also, give the best customer service possible with the quickest possible response time. Since it’s high-ticket dropshipping, you probably won’t have as many customers, so it won’t take long to handle support tasks.
What are some more reasons why the high-ticket model is good?
- In general, the benefit of dropshipping is that you don’t have to spend money on inventory. This factor is more important for high-value items.
- You won’t have a lot of competitors, so you won’t be one of a billion.
- You don’t have to sell a lot of things every day. You can make more money by selling less.
- As your profit from high-ticket dropshipping is usually bigger, you will have more money to spend on marketing.
Even though most people say that high-ticket dropshipping items cost more than $200, that isn’t always true. Some say $500, $1,000, or $2,000 is the limit. Dropshipping is called “high-ticket” if your goal is to sell expensive, high-quality items.
Some examples of high-priced dropshipping items are bikes, furniture, large home decorations, cameras, watches, car parts, home electronics, and high-priced hobby items. art pieces.
This list is just meant to give you ideas. The market is already full. Find your own niche by doing something unique. Sell things that the people you want to reach need. Also, you have a better chance of staying on the market in the long run if you don’t focus on what’s hot right now.
What else do you need to pay attention to?
- High-quality, unique product photography
- Online store that looks nice and is easy to use
- First-class shipping
- Run an excellent marketing strategy
- Reliable suppliers
As for suppliers, you need to find the best one so that your expensive products don’t get lost during shipping. Giving back such a large amount of money is not good for your company’s bank account. Find a partner you can trust, who won’t just disappear, who has a good refund policy and good customer service.
It’s best to have a partner in the US, EU, or AU to make sure it’s a high-quality, one-of-a-kind product that can’t be found in every other store, and delivery will only take a few days. Pick based on where you are.
More about Dropshipping with Low Prices
Low-ticket dropshipping is what traditional dropshipping means. Most people think of getting cheap products from places like AliExpress when they think of this business model in general. Every day, these stores sell a lot of cheap things.
Dropshipping with low prices needs more buyers than dropshipping with high prices. Here, you need to focus on making your customers your fans for a long time, in addition to getting new customers all the time. This is how dropship businesses with low prices can make money and stay in business.
Even with this model, there are already too many on the market. How can you run a business with low prices well?
- Find a good spot.
- Run a great marketing campaign that is well-targeted.
- Spend more money on paid traffic to reach thousands of visitors, but only a few of them will actually buy.
- Work hard and spend a lot of time on your online business.
- If you want to sell products that are popular right now, you should jump on the trend as soon as possible because you will have many small and large competitors.
Some examples of low-priced dropshipping items are phone cases, jewelry (called “bijou”), popular items (like the fidget spinner), underwear, stationery, cheap clothing, candles, and simple home decor.
Retailers choose this model because more people go to a website that sells, say, phone cases than one that sells high-end road bikes. They focus on getting more orders, but they need more purchases here than with high-ticket dropshipping. Also, with the other model, they could make more money with fewer sales for almost the same amount of work.
What is this model’s other major flaw? Since items come from places like AliExpress, customers have to wait weeks for them to arrive. It makes things bad for the customer.
So, what business model should you pick?
We can say that if you use the high-ticket dropshipping model, your business has a good chance of making a lot of money.
No matter what, you have to make sure you choose your niche very well. Sell one-of-a-kind, high-quality items and charge extra for shipping. You should just forget about buying things from AliExpress and other sites like it. You need to find a real, local supplier with a short lead time so that you can give your retail customers the best service possible.
As for low-ticket dropshipping, you can use this model’s products to find buyers for your high-ticket dropshipping items. It would be like a hybrid model. But you can’t do that with all kinds of products. Not everything can come in both expensive and cheap versions, or it wouldn’t be worth it. Don’t try to sell both Dolce & Gabbana bags and fluffy, low-quality keychains from AliExpress in the same store.
With a well-designed mix of low-ticket and high-ticket dropshipping, you can even out the sales volume and have a steady source of income where the sales don’t come too often. Items that are less expensive can be used as entry points.
There is no good recipe, though. No one can say for sure that a certain model is the best for everyone.
You just need to show the market that you are a unique store with unique things to offer. Find your own style, and don’t forget to brand yourself as a professional. Having a strong brand identity is important. Check out your competitors to see how you can beat them and how you can be different and better than them.
High-ticket dropshipping is a more stable model that I would recommend you use if you want to build a brand and business that people will take seriously and trust.
Say you want to make a net income of $4,000 per month. Also, let’s say you make $4 from the sale of a low-ticket item (like a phone case) and $400 from the sale of a high-ticket item (like a road bike). You can see that you need to sell more products to reach the $4,000 a month goal. This will allow you to cover all of your marketing and business costs, as well as pay your employees. There are 1,000 phone cases, but only 10 road bikes.
If you’re thinking about a good income goal and how much of a markup to use, find a balance between your income, your marketing costs, your profit margin, and any other costs you have.
Where Can I Find Things to Sell in My Online Store?
We have a way to help you right here. dropship-empire is a B2B platform with a Marketplace where retailers can find millions of products from local and global suppliers with short lead times.
You can choose items one by one or a lot at once. You can find your winner goods whether you’re looking for high-ticket or low-ticket dropshipping products. Also, the app takes care of updating product data and syncing orders every day by itself.