Dropshipping is a great business model for online entrepreneurs who are looking to set up their own eCommerce store without having to carry any inventory. The most popular form of dropshipping is low-ticket dropshipping. This is where you are selling items that only cost $5 to $10… But if you’re looking to really make some money in the dropshipping world, you should consider starting a high-ticket dropshipping business. Here are 5 reasons why…
What is High-Ticket Dropshipping?
High-ticket dropshipping is a type of eCommerce business model in which online retailers sell products at a higher price point (normally $100+) than traditional dropshippers. This allows them to make more profit per sale, but it also means that they need to be more selective about the products they choose to sell.
To find high-ticket products, most entrepreneurs will use a dropship product finder or product research tools like Google Keyword Planner or Amazon Best Sellers. This allows them to see which products are selling well and at what price point. They can then source these products from suppliers and list them on their store at a higher price.
5 Reasons To Start High-Ticket Dropshipping
1. Higher Profit Margins
One of the primary benefits of high-end dropshipping is that it offers higher profit margins. This is because high-ticket items typically have a lower cost per unit, meaning that you can make more money on each sale. For example, if you were to sell a $100 item for $200, you would make a 50% profit margin. However, if you were to sell a $10 item for $20, you would only make a 10% profit margin.
2. More Affordable Shipping Costs
High-ticket dropshipping also tends to be more affordable from a shipping perspective. This is because the cost of shipping is typically calculated as a percentage of the total order value. So, if you were to sell a $100 item for $200, your shipping costs would be $10 (5% of $200). However, if you were to sell a $10 item for $20, your shipping costs would be $1 (5% of $20). As such, high-ticket dropshipping can help you to save money on shipping costs.
3. Access to Better Quality Products
When you dropship high-ticket items, you also have access to better-quality products. This is because manufacturers are typically more willing to invest in higher-quality materials and construction when the retail price is higher. As such, high-ticket dropshipping can help you to offer your customers better quality products.
4. Greater Customer Lifetime Value
Another benefit of high-ticket dropshipping is that it can help you to generate greater customer lifetime value. This is because customers who purchase high-ticket items are typically more loyal and have a higher likelihood of making future purchases.
Additionally, customers who purchase high-ticket items also tend to refer more friends and family members, which can help you to grow your business even further.
5. Increased Brand Awareness
Finally, high-ticket dropshipping can also help you to increase brand awareness for your business. This is because customers who purchase high-ticket items are typically more likely to share their experience with others. As such, high-ticket dropshipping can help you to reach new audiences and grow your business at a faster rate.
6. Less Competition
In addition, high-ticket dropshipping also tends to have less competition. This is because not as many eCommerce entrepreneurs are willing to invest in higher-priced items. As such, it can be easier to stand out in the market and attract new customers with high-ticket dropshipping.
Conclusion
Overall, starting a high-ticket dropshipping business can offer numerous benefits for your eCommerce store. From higher profit margins to increased brand awareness, there are plenty of reasons to consider this model for your business. So, start researching products and suppliers today and take your dropshipping business to the next level!
