Why You Should Dropship High Cost Items
People are often confused whether they should sell low ticket items or should go for high ticket items. Low ticket items consist of any product that comes below the cost of $20 and have less profits margins and high items cost above $20 and have high profit margins. High ticket products obviously get more profit in any kind of e comer business including Dropshipping.
Sometimes people don’t get enough profit on their Dropshipping store because they focus on everything like setting up their store and its advertising but forget the most crucial part and that is the kind of products that they are selling. Its very important to know that what kind of a product you are selling and how much you are charging for it. For example, there is a Bracelet on AliExpress which costs $2 and you think that it can make good sales. You add the Bracelet to your store without knowing how much you should charge.
Now let’s say you want to make a profit of $10. So, you will sell this product for $10 on your store and it roughly costs you around $2. The profit margin is basically $10. You make a profit of $100 if you sell 10 of these bracelets. But its not that you will get $10 profit in hand because there are so many overhead charges that you need to bear. If your store is getting a lot of profit, you also need to pay expenses like the Shopify store 30 bucks a month or any other plan that you have, your domain, marketing cost etc. So, when you have only had $10 profit margin you are basically trapping yourself to a negative end result which will cause you losing your money. Of course, you will make profit if you sell a lot of these products but if you are testing them you are probably lose your money.
People often start selling low ticket products and they don’t know what to charge for the product. They end up keeping such less margin and start losing money and they wonder why they are losing money. Here, we highly recommend you to test a lot of products whether you have a general store or a niche store or you can have a very narrowed down store that has selective products or even one store. There are cases when people made money out of one product store as much as $100. They are selling high ticket items.
Low ticket items are generally will make you lose your money and people don’t understand that you can sell a $100 product or a $200 on Dropshipping store. You can charge any amount of what in Dropshipping. You don’t have to set certain prices but you have to do some homework regarding your budget and expenses because there is a lot of risk of losing money that is involved. If you have a high-ticket item for example a Drone that cost $20 on AliExpress and you are selling it for $100 which means you are getting $80 as your profit. This will basically give you more amount to experiment with you marketing, domain, etc because you making more money than you make with a low-ticket item. You will be able to spend more money on different things.
You are only making $10 per bracelet which means you will make $100 if you sell 10 of these bracelets and if you sell 10 of those drones, you will make a profit of $800 which is pretty much a big deal. All you have to do is to make your customer buy these products. You basically have to focus on your ads. You must take care of the text and images that you are using. We recommend you the video ads for high-ticket items. Don’t spend much on ads for cheap items. You should showcase your products in the best possible way and tell your audience that why should they need these products. They can find the product on AliExpress and buy it but you have to attract them to buy it from your store. This is how Dropshipping works. People really just want the product in front of them and buy it.
Many Dropshippers select products without caring if it is high ticket or low ticket. You should not select products that are not trending. The products that are out of the box and a lot of people are selling them are the best kind of products. For example, people sell pillows and there are so many competitors in the market who sell pillows including Walmart. So, if you decide to sell pillows people will not care about your store as there are already many stores which are selling them. You won’t be able to market these pillows because of the competition. You won’t be able to get your money out without losing your money.
Beginners often don’t understand the concept of competition in Dropshipping business. There are so many big brands which are already selling the products which you might chose to sell. So, make sure that you sell a very unique product.
When it comes to making a lot of money via Dropshipping, find a product through which you can create a good perceived value. You have to display your products as something which are worthy of their cost. For like you sell the $20 drone for a $100 and get $80 profit margin. On the other hand, you find one thing that these Chinese manufacturers are creating and they cost them probable $15 and you are making $5 profit on each one of these products. Here you won’t be much concerned about huge margins. You will have a huge room to play with. $20 dollar for a product like Drone is a good deal. In that $20 you will figure out how to market it.
You might highlight its quality camera and other good features. You should talk about each and every detail to rise shopping instincts of your audience who is willing to shop. You have to make people buy products from your store. You need to trigger their emotions in order to make them buy your products. You can’t make them buy without touching the, emotionally. Ads on Facebook and Instagram could easily trigger the emotions of your audience. They will scroll through their social media feed. So, make sure your ad can capture their attention.
They must click on your product and even if they don’t you at least have to make them feel like buying these products by triggering their emotions in a positive way. As we said above products like pillows will not make people jump out of their chair and make them immediately buy them. Pillows are a basic necessity but you have to find products which everybody want instead of needing it. People will be willing to spend any extra money that is required to buy something they want. So, find products that can create a good perceived value. It might take a little time for these items to make sale if you are using Facebook and using broad audience targeting with no pixel data.
However, even if it is taking time to make sales you will get high profit margin as much as $80 on the Drone. Even if you’re are spending high amount on ads, you will get profit somehow and you will not lose money even if the product that you are selling is not good. Doing this will make your store profitable in the long run. In some time, you will exactly know how much to charge for a product or which product to chose etc. High-ticket products will always result in profit.
Shopify High Ticket Drop Shipping Product Research Method
Sales are very important when it comes to Dropshipping business. In order to grow your sales, you need high ticket products and niches. Today, in this article we will talk about how to ticker Dropshipping products and niches.
First thing that you need to keep in mind is that unlike low ticket private research there are no sites such as EECOM hunt that could provide you ideas regarding high ticket Dropshipping. The reason for this is that high ticket Dropshipping is a completely different kind of Dropshipping whereas, low ticket Dropshipping only constitutes products which are in trend. There is a use of a lot of tools which are capable of detecting fresh trends and hop on to products quickly. In this way you can build a successful Dropshipping store with the use of these products. One of the best examples of such products is fidget spinner. This one product gained so much popularity all across the globe. Each and every Dropshipper sold it at some point of time.
When it comes to high ticket products you are not making sales of trendy products but you are selling products that get consistent sales all over the year. These products don’t have fluctuating sales but stay consistent. When you look up to the Google trends of the high-ticket products, you won’t find any ups and downs in sales. Whereas, low ticket products have high as well as low spikes. They go in trend at some point of time and go out of trend at a particular time. High ticket products are very consistent in nature.
How to find high-ticket products?
The best way to do it is by visiting big departmental stores and malls with a pen and notebook and make a record of products which are trending. Try to analyse which products are getting maximum sales. Make a list of every single product that costs $200 or more. Write down names of all these products. For example, if you find a gorilla tripod in a departmental store which is getting a lot of sales, write it down in your notepad. Visit all kinds of stores, malls and shops. This is one of the best ways to find trending products.
The other way to find high-ticket products is by simply looking around your house. Yes, we said it that you should look around your house. However, you need to remember that you should look beyond surface level things such as furniture. You need to think beyond that. A product like your ceiling fan is a high-ticket product. Products like stove, fridge, sinks are also exampling of high-ticket products. Its not necessary that only products like furniture are high-ticket products.
High-ticket product constitutes all the products in your house that costs more than $200. You could easily go for such products. You should also checkout area around your house like your backyard. Go check it out and point out for say products such as your shed which normally costs around $1000. You can also do small surveys with people around you about products that they will potentially buy. Make sure you include only the products which costs more than $200. Ask your friends about the products that they recently bought in four or six months. Write down all these products somewhere. You can’t expect to sit in the house and do product research on your computer. Searching high-ticket products is very different from finding low ticket products.
You can also look through your and your family’s bank statements and point out the products that you bought that cost $200 or more. Make a list of these products and start narrowing down those products. Check out the search volume of these products with the help of Google search.
The above-mentioned ways are a few best ways to find products when it comes to high-ticket Dropshipping.
How to sell high-ticket Dropshipping products?
If you think that everybody else apart from you is excelling in Dropshipping and you can’t figure out how then read along. If you are tired of selling products like widget and dealing with all the customer care issues regarding them without making profit then we are here to tell you about high-ticket Dropshipping process. Cracking a high-ticket product will give you a lot of profit because the profit margin is wide and you don’t have to deal with a lot of customers. Dealing with so many customer care issues one of the biggest drawbacks of the low ticket Dropshipping. Dealing with customer service issues is very complex as you have a lot of customers to deal with when you are doing low ticket Dropshipping.
When you sell high-ticket products, you have a smaller number of customers to deal with. So, high-ticket product Dropshipping is the model that you must go for.
First thing that you need to for Dropshipping high-ticket products is to search for products that costs you more than $25 and then list out that product for like $100 so that you can get a profit margin of $75. In this way you will get more money to spend on other expenses like marketing. So put that filet in on all the products. You need to sell products that cost more than $20-$25 dollars and then start testing these products at very rapid rate. In this way you will be able to find more winning products. We suggest you to test more products because when you are testing many products you find the winning products easily.
After that kill the products that are losers. When you get the most profitable product which is getting you biggest profit margin, you must focus on that product. You should increase the conversion rate, test different videos, test different copy and test on different audiences. When you find one winning product, we suggest you to test that product in every possible way.
There is one trick that you could adopt that if the product is selling for a $100 and it cost you $25 and if you could make two payments of $49 and $49 or three payments of $35 you are still making a little profit on the first payment. However, your conversion rate will rise as not everyone would have $100 to spend but they will easily spend $49 or $35. So, this is one of the most beneficial tricks that you could use in terms of high-ticket Dropshipping products.
You also need to focus on targeting. Have at least three campaign set ups for the audience of your site. You should then give offers on these campaigns. Use catchy offers on your campaigns to target the audience at its best. Put 10% to 20% off on your products. In this way more people will click on your ad and take interest. It’s not the impulse of shoppers that will make them by your product but the correct targeting is what will help you.
High-ticket Dropshipping is more relaxing and scalable. You get less customers but your profit margins are higher than the low-ticket products. So, this is how you do the whole process of high-ticket Dropshipping.