The best way to do well with dropshipping is to sell high-priced items. With this, you can make more money. A big problem with many dropshippers is that they try to sell items that cost less than $10 and make a $3 profit.
If you do that, you’ll need to sell 1,000 items in a month to make $3,000. It might work for some people, but it’s not smart. Before you can reach that level of sales, you have to spend thousands on advertising and a lot of time marketing.
But how does it work? Today, we’ll show you how to make money by dropshipping high-ticket items.
Here’s what we’ll talk about:
- How does dropshipping work?
- How do you look for expensive things?
- What are the best items that cost a lot?
- Pros of Dropshipping for High-Priced Items
- High-Ticket Dropshipping Drawbacks
If you do this, you only have to sell a few items to make a lot of money. First, let’s talk about what dropshipping is, and then we’ll move on to how to find these products.
How does dropshipping work?
Dropshipping is a common way to do business that involves three different people. There’s the supplier, you, and the person you do business with. Dropshipping is when you sell someone else’s goods and keep the money you make.
How dropshipping works is as follows:
- You sell someone else’s goods and charge more than the supplier does.
- When a customer buys something from your store, you order it from the supplier.
- The product is sent to your customer by the supplier.
- It’s a simple and useful way to run a business because you don’t have to keep stock. You don’t have to buy things and put them away. All you have to do is set up an online store, put your products on it, and sell them.
You can add any amount of profit you want to the price the supplier gives you. But you need to make sure that your retail prices are still competitive. You can’t sell something for $100 when it’s only worth $34 on the market, or no one will buy from you.
And this is why dropshippers choose to sell items with low prices. They think that if the price is fair, they will get more customers and make more money by selling more.
The problem with this method is that there are also a lot of other sellers trying to get these customers’ business. There are other people trying to sell that summer dress, too.
Usually, these things happen:
- The law of supply and demand says that if there is too much supply on the market and not enough demand, the price will naturally go down.
- As dropshippers lower their prices, you will have to do the same.
- This means you make less and less money per product.
- Dropshippers also like low-priced items because they know they will have to pay for the item once a customer orders it. Even if the customer has already paid, the money won’t go straight to your account. Most payment processors will send the money to you in two or three days.
You should have already ordered the item from your supplier between these two and three days. This means that you have to spend money first, ship the item, and then get your money later.
Because of this process, many dropshippers choose to sell items at low prices. While they wait for the money, they can pay for it.
It works, but you won’t get rich from it. If you sell cheap items, your dropshipping business won’t make enough money for you to quit your regular job.
How do you look for expensive things?
Many people think that when something is high-ticket, it costs at least $1,000. This isn’t the case. Most things that cost thousands of dollars, like Louis Vuitton bags, have a brand name.
You can’t sell these items at this price because people would rather buy them directly from the brand maker than from you.
For the purposes of this tutorial, high-ticket items are those that sell for $200 or more. This means that you can make at least $30 more per item than you paid for it.
You only have to sell 100 units a month to make $3,000 a month. With low-ticket dropshipping, you need to sell 1,000 units to make the same amount of money, even though you’re putting in the same amount of work and spending the same amount of money on ads.
Here are the two best places to find expensive items that you can dropship:
Both are tools used by dropship suppliers. Before you can use them, you have to sign up for an account. As directories, they have a list of suppliers all over the world who will ship the items directly to your customer.
Spocket is software that you can add to your online store on Shopify or WooCommerce. With this tool, you can look for products based on where the supplier is. With this feature, it should be easy to find products from certain countries.
You can sort the products by price and type to make your search easier. If you look at the image below, you can see that there are filters for both category and price. Use these filters to find valuable things you can sell.
Set the minimum price to $200 in the Price Filter button. Then it’s up to you to find products that fit your niche.
After that, you can scroll down the page and look for a product that interests you. If you look at the screenshots below, you can see a jacket and some furniture.
You’ll have to pay $225 for the jacket, but you can sell it at the market for $300. This should make you $75 per sale, which is a lot of money. You can also sell furniture, like the Azure Tiger 3-seater sofa, if you want to. You will spend $678.71 on it, but you can sell it for $904.95, making a profit of $226.24.
Spocket is like SaleHoo. It has more than 8,000 suppliers, and SaleHoo’s management has approved each one. When choosing suppliers, the company has high standards because they want both the dropshipper and the customer to have the best experience possible.
Here are some things about SaleHoo:
- Verified Suppliers: This site has more than 8,000 high-quality suppliers who have been checked out. Overall, the directory has millions of low-priced and expensive products from more than 150 niches.
- Training: Here, you can take part in free training sessions. The company sometimes offers classes on e-commerce and dropshipping. The site also has a lot of written training materials that you can access at any time.
- Market Research Lab is a feature that lets you find out what products are popular, how much you can charge for them at retail, and how much money you will make. In this lab, the experts have already done the research for you. All you have to do is choose a high-priced product that will sell well.
- Even though SaleHoo is not free, the Market Research Labs make it worth the money. It’s a powerful tool that gives you real information about how people buy certain products. If you know what people want, you can figure out what will sell.
What are the best items that cost a lot?
Now that you have the tools to find suppliers, the question is: what should you sell? Because SaleHoo has Market Research Labs, it would be easy for you to answer this question if you use it.
But if not, take a look at what we think you should do.
The first choice you have is furniture. You can sell a sofa, cabinet, kitchen table, dining table, and so much more. This should be easy to sell because the product itself says a lot about it. All you need are photos that look good.
In this case, your target market is families and couples who just moved in together. People know that furniture is expensive, so you can raise or lower your prices a lot.
This is a very big market. You can sell smartphones, USB sticks, dashcams for cars, and computer accessories like mice and gaming keyboards. The list keeps growing.
Electronics are popular all year, but they are especially popular at the end of the year. People are willing to spend money to get good gifts during the holidays.
Toys Made by Pros
Remote-controlled cars and drones are toys that are used by professionals. These are expensive hobbies, and the people you want to sell them to are rich people who are willing to pay at least $500 for a single set.
Drones are also very popular with professionals who want to take photos and videos from the air. There are also people who want to start making videos, and they need drones with cameras to get their business going.
Pros of Dropshipping for High-Priced Items
Besides making money, there are other good things about selling expensive items.
Not much going on
Few dropshippers sell items with a high price tag. A lot of dropshippers don’t have enough money to pay the supplier for the product up front. This works well for you because a person looking for furniture doesn’t have many choices besides you and a few others.
If you sell cameras, there are probably not many dropshippers who can pay a supplier $1,000. But the market is in your favor if you have this money.
Since you sell expensive things, we can assume that they are also of good quality. For example, you can buy drones for 7-year-olds that cost less than $50. But kids shouldn’t use drones with high-definition cameras.
These products are made to work in harsh conditions, which are best for adults who like to take videos in the mountains. You can drop these things and not break a single piece.
High-quality materials and a strict manufacturing process are used to make things that are expensive. And because of this, they sell for more.
Customers who come back
People who can buy expensive things will come back for more, for sure. It’s not like they spent all their money on one thing and then didn’t buy anything else to go with it.
If someone bought a couch from you, he or she is likely to buy a table top or a center table from you as well. If you sold a drone, the person who bought it will need more batteries or other parts.
Where will they buy things? They will buy from you because you have a good product and are in that niche.
High-Ticket Dropshipping Drawbacks
There are always some risks you need to be aware of. There are some bad things about high-ticket dropshipping that we’d like to talk about. This will help you decide if it’s right for you.
These items cost at least $200 each. If you make $50 on each order, that means you have to pay the supplier $150 up front.
Not included in this price is the cost of shipping. If another order comes in the same day, you have to pay for it again and wait for the money to clear, which can take two to three days.
If you want to sell high-priced dropshipping items, you need money. You can also wait until the funds are clear and then buy the item.
If you do this, you have to tell a buyer that it will take three business days to process the order.
Most people don’t spend money on fancy things. They only buy things that they can afford at prices they think are fair.
Because of this, you can expect your market to shrink. This is fine, because no one will ignore your marketing efforts. People will only bother to look at your store and products if they know they can afford what you have to offer.
Is hard to sell
Because the products are expensive, you can’t expect people to make decisions based on their feelings or on the spur of the moment. They will take the time to look for alternatives, read reviews, and compare your product to others.
Someone probably won’t give you $1,000 just because they saw your camera or gadget. He will probably take another week to figure out what to do.
Now, this is okay because there is a way to deal with it. Make sure your website has a way to sign up for emails or a form.
Once you get an email address from a lead, it’s up to you to keep reminding that person about your product.
Costs of shipping went up
Since many of these items are valuable, they will cost a lot more to ship than a regular item. The supplier has to pay for insurance so that if something breaks, he can get his money back.
For example, furniture is always big. Because the product is bigger, you will take up more space, and couriers will charge you more to ship it. You can offer free shipping and add the cost of shipping to the sale price, or you can charge a separate fee for shipping.
If you dropship expensive items, you need to be ready for some risks. The best way to avoid these risks and protect your business from failing is to do research.
Overall, high-ticket dropshipping is a better way to make money. Even though you need money, this money will pay for itself in the long run. You can only make a lot of money without selling a lot of things if you sell high-priced items.