High-ticket dropshipping is a way you can earn money via e-commerce without having to own a physical store. In fact, one of the biggest benefits of high-ticket dropshipping is that you can sell products and earn profits without ever having to hold inventory.
But like most businesses, there isn’t any simple road map to success in the high-ticket dropshipping industry. You’ll have to understand the ins and out of how it works and what the pros and cons are before you begin if you want to maximize your chances of success.
Basics of Dropshipping
Dropshipping is simply a fancy word for a specific way to fulfill e-commerce orders. Traditional retailers keep a warehouse of inventory that they send to customers upon receiving an order. But if you run a dropshipping business, you won’t have to buy and sell your own inventory.
Rather, if you receive an order for a product, you’ll simply contact the manufacturer, inform them of the order and have them package and ship the product directly to the customer. As a dropshipper, by keeping inventory with manufacturers, you can avoid the very high costs of building warehouses, brick-and-mortar locations and keeping pallets of product on hand at all times.
What Is High-Ticket Dropshipping, and How Is It Different?
Dropshipping traditionally was used by sellers of lower-cost products like dog toys and personal trinkets. With a small per-unit price and slim margins, sellers had to create a way to ensure their costs were as low as possible so they could still turn a profit, and dropshipping helped provide the answer.
High-ticket dropshipping operates the same basic way — with dropshippers sending product directly from manufacturer’s inventories — but the product line is different. As the name implies, high-ticket dropshippers work only with more expensive products, such as diamond rings, televisions and furniture. The general process is the same, but the marketing strategies behind it can be very different, as you’re dealing with a different type of customer.
With low-ticket dropshipping, for example, retailers tend to get a large percentage of impulse buyers. Think of all the low-cost gadgets and distractions you see in your local brick-and-mortar retail shops. Mostly they consist of things that you didn’t specifically go to buy at the store but might purchase on impulse, thinking they are cute or unusual.
High-ticket dropshippers, on the other hand, don’t get much in the way of impulse buys. It’s not often that a customer will randomly wake up one day and think, “I really want to buy a diamond ring today,” for example. This means that high-ticket dropshippers must cater and market to buyers who already have the intent to buy a particular item, like a TV or a new couch.
What Are the Benefits of High-Ticket Dropshipping?
The ultimate benefit of high-ticket dropshipping is that you can earn a lot of money without taking on undue risk. Without having to invest in buildings or even product, high-ticket dropshippers can ring up high-dollar sales with relatively minimal costs.
As opposed to low-ticket dropshippers, high-ticket dropshippers generally enjoy higher margins and don’t have to rely on a vast amount of sales to generate the same amount of profit. Selling five $5,000 televisions, for example, may generate the same amount of revenue as selling 5,000 individual dog toys. Although it can be harder to get a bigger individual sale, it doesn’t require constant, high-volume selling.
How Can You Get Started?
There’s a multi-step process to getting started with high-ticket dropshipping
The first thing you’ll want to do is thoroughly research what exactly it is you want to sell, and if there is a market for it. Just like any retailers, you’ll only want to work with products that customers are likely to buy, so this can involve some pretty extensive research into product profit margins, demand trends and current macroeconomic factors.
Next, you’ll need to impress the manufacturers you want to work with so that they’ll consider doing business with you. This may involve developing an effective website that showcases their brand(s) in an attractive way, along with demonstrating how your customer service will be effective and will only enhance — and never minimize — the value of their products. You can think of the manufacturers as your first customer. Unless you can convince them to allow you to sell their products, your business won’t get off the ground — so first you’ll have to sell yourself to them.
After you’ve got your suppliers sorted out, you’ll have to turn your attention to getting paying customers. In addition to creating an attractive, easy-to-use website, you’ll have to target customers that are interested in buying the items you offer. Many high-ticket dropshippers prefer to use search engine optimization tools, helping them locate customers that are ready and willing to buy what’s listed on your website. But depending on your market, you may find that paid advertising works just as well.
The last basic step in creating a high-ticket dropshipping business is to ensure your logistics and customer service are top-notch. Efficiency in delivering product and the ability to keep customers happy are the cornerstones of any successful business.
More From GOBankingRates