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High ticket dropshipping is selling expensive items while low-cost dropshipping is selling low-cost items.
In this article, I will Low ticket products vs high ticket products, how to start high ticket dropshipping and its Benefits, the difference between high ticket and low ticket drop shipping so that you can see if this is right for you.
I will also share how to pick products to sell and the best high-ticket products.
What is High Ticket Dropshipping
The products that are generally expensive and mostly big and heavy in size are called high-ticket products. Large-sized products are generally more expensive than low-cost items. For example, a sofa is more expensive than a pen and you can call a sofa a high-ticket product.
Why Choose High-Ticket Items to Dropship
I can answer this question straight away. However, let me explain it in a better way with an example.
You are selling a mobile phone case that costs $10. Your profit margin is 30%. You earn $3 for each sale.
Now, you are selling a Murphy Bed that costs $1000 with the same profit margin and you earn $300 for each sale.
By now, you should have concluded that a high-ticket item with the same profit margin as a low-cost product can generate more profit for you. Your efforts and advertising costs remain almost the same.
Let’s assume, you sell 10 mobile phone cases daily and you earn a net profit of 10*$3= $30. On the other hand, even if you sell a single piece of a bed, you will earn 1*$300=$300.
This is a huge difference.
Additionally, with fewer customers, your volume of customer support is also less.
What are the Pros and Cons of High-ticket dropshipping
The pros include
- More Profit Per Sale
- Lower Volume of Customer Contacts
- Less Operational Cost
The cons include:
- They’re generally large like a piece of a furniture
- They are heavy to ship
- High-ticket products are expensive
- There’s a smaller market
How to Pick High-Ticket Products for Dropshipping
Before you start dropshipping expensive products, you should consider these points:
You are not selling branded products. If you sell customers who have brand loyalty, they might not buy your products unless it is a trusted brand. There are products like a Paddle Boat or Treadmill where buyers do not have any brand loyalty
You should avoid heavy machinery products. It is difficult to handle such transactions, should there be any problems or if a customer wants to return it.
How to find Genuine high-ticket dropshipping products
The best way to pick a quality product is to have it checked. If you understand the product, you can visit your supplier showroom and check it yourself. You can also check their product reviews if they are already selling in the market.
Final Words
When you start dropshipping expensive products, your profit increases. This is why drop shippers are turning to this new matured concept of selling costly items. You can try which niche or product works best for you.
If you have any questions, please do leave them in the comment box below
