When e-commerce competitors analysis, you may notice that some sell products with minimal profit margins. In contrast, others focus on high-ticket dropshipping products that generate substantial income with each sale. You're not alone if you’ve ever wondered how they do it. This blog will explain what high-ticket dropshipping products are and demonstrate their value in the dropshipping world, highlighting how you can start selling them.
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What Is High Ticket Dropshipping?
High-ticket dropshipping is a business model in which e-commerce merchants sell high-priced products to customers, and a third-party supplier handles the order fulfillment process for those sales.
Understanding Dropshipping Profits
The profit business owners earn using this dropshipping business model comes from the margin between the retail price customers pay and the wholesale price merchants pay the suppliers for procuring, storing, and shipping products. For example, a high-ticket dropshipping could market and sell a sofa for $500 as the retail price, pay the supplier $400 for the wholesale price, and make a 20% profit margin off the sale.
High Ticket Dropshipping vs Low Ticket Dropshipping
Whereas low-ticket dropshipping involves selling items in the price range of $10 to $100, high-ticket dropshipping focuses on products at a higher price range, from $200 to several thousand. Low-ticket dropshipping requires merchants to earn high sales volumes to earn money from low-ticket sales, while high-ticket dropshipping businesses can earn money from a few products at a higher price.
Although high-ticket dropshipping can involve less competition and higher profit margins, it also has more significant risks. This dropshipping company needs to invest more upfront in the following areas to build trust with high-ticket customers:
Customer service
Insurance
Marketing efforts
High-ticket customers need to trust the quality of the products and the brand before purchasing more expensive products.
What Is a High-Ticket vs. Low-Ticket Product?
High-ticket and low-ticket items, as their names imply, differ primarily in their price tags. While there’s no universally accepted definition for what counts as high- and low-ticket items, you can usually categorize products with prices below $100 as low-ticket items. High-ticket items generally start at $1,000 and can reach tens of thousands of dollars.
The Pros and Cons of High-Ticket Dropshipping Products
High-ticket dropshipping products come with several benefits, including:
Higher Profits Per Sale: While you may sell fewer items overall, each sale of a high-ticket item brings in a significant profit compared to lower-cost items, like cell phone cases and yoga mats.
They’re Not Impulse Buys: High-ticket items are products your customers research and mull over before purchasing. They can be big or bulky items like furniture or smaller items that fall into a luxury or premium niche (e.g., a wool throw blanket for $199).
They’re High-Quality: Since you’re selling items at a higher price point, your customers largely expect a higher level of quality. This means that you’ll need to source your products from reliable vendors and wholesalers who can meet your standards in terms of customer service and product quality.
To give you an illustration, let’s say you are thinking about whether to sell cheap or luxury clothing and accessories. Here’s how much I’d earn by selling each of these categories:
Profit Potential in Selling Designer Handbags Online
Selling cheap women’s bags manufactured and imported from locations at low manufacturing costs. This particular handbag costs $30; I may sell it for $49.99 and will earn $15. I am selling authentic bags from renowned brands; for example, I can source this Dolce & Gabbana bag from BrandsGateway. I can buy this bag for a wholesale price of €586 and sell it for a retail price of €1,950, leaving me with €1,364 in profits.
I can earn big profits by selling a few products by selling clothing in the luxury of sale. I’ll need to deal substantially more products with low-ticket items to earn the same profits. Even at a 10:1 ratio, the ten sales I make from the low-ticket item still wouldn’t make that much compared to a single sale from the high-ticket item.
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Marketing high-ticket dropshipping products is much easier than low-ticket items. You target a specific buyer persona living in a developed country with a higher financial power. In comparison, low-ticket items appeal to a broader audience and require much more testing to find your ideal customer.
2. More Sustainable Business Model
High-ticket dropshipping is a more sustainable business model because you sell authentic branded products that fewer sellers offer. This means less competition and a greater chance to stand out in the market.
3. Fewer Returns
High-ticket items are usually products of premium quality. As a result, you are likely to receive a much lower number of product returns and customer complaints.
4. The Psychology of Buying High-Ticket Items
The mindset behind buying high-ticket items plays a significant role in online shopping. Most of the time, people purchase goods online impulsively. If we compare cheap, low-quality goods with expensive luxury goods, online buyers are likelier to spend more on good-quality pieces that will last longer than on trivial things that don’t have a long life span.
5. More Upfront Capital Is Required
High-ticket dropshipping generally requires more upfront capital. You’ll have to budget more for every item you sell, including:
Shipping
Packaging
Marketing
Not to mention that if an item is lost, damaged, or returned, you’ll have to stomach higher costs for replacing it.
6. Branding and Marketing Are More Critical
While every drop shipper needs a strong marketing plan, high-ticket drop shippers are especially under fire for developing a solid brand to justify the higher costs of their products.
7. Customer Expectations Are Higher
Selling a $4,000 coffee table is more risky than selling a $15 tote bag. Customers have higher expectations regarding the following:
You can’t bank on having as broad a reach as with low-ticket dropshipping and may see fewer returning customers in a given period because each product you sell is an investment piece.
Step-By-Step Process of How to Do High Ticket Dropshipping
1. Perform competitive research
Before you start high-ticket dropshipping, research the market and identify high-ticket dropshipping niches with low competition and increasing online searches. Once you’ve chosen the right high-ticket products to sell, research the competition to learn:
What other high-ticket stores sell those items for?
What profit margin can you expect?
How can your products and brand stand out from different sellers?
2. Find the Right Products to Sell
There are no surprises here. The first step is to find high-ticket items to sell in your dropshipping store. There are many ways to research potential products and validate your ideas before investing time or money into marketing. Google Trends is a helpful tool that's easy to use. Simply type in your product idea, and you'll see interest in the search term over time.
You can also use Amazon and eBay best-seller lists. Of course, many people use eCommerce marketplaces to search for bargains, but you can find great high-ticket dropshipping product ideas if you look in the correct categories.
To gain insight into specific products and niches' popularity, you can use keyword research tools like:
Ahrefs
Ubersuggest
These tools can also help you judge the level of competition for high-ticket dropshipping niches. It's best to use multiple tactics to validate a product idea. Generally, you want to see consistent demand over time.
3. Find a Reliable Supplier
Once you've narrowed in on a good product, the next step is to find a supplier for your high-ticket dropshipping business. Now, finding a good supplier is super essential for high-ticket dropshipping. The cost of returns can quickly eat into your profits, so you need to be extra careful when choosing a supplier. The best high-ticket dropshipping suppliers will have:
Proven track record
Great communication
Excellent quality control
So where can you find these suppliers? Here are the three best places to look:
AliExpress
AliExpress often gets a bad rap from drop shippers. And while it does have its issues, you can undoubtedly find trustworthy and reliable suppliers on the platform if you look hard enough. It's much easier to do that if you use the right tool.
Your Trusted Source for Quality Products
With a tool like SaleHoo Dropship, you’ll have an easier time finding trending products sold by vetted suppliers because the tool only allows you to dropship quality products from credible suppliers. You can add products to your Shopify store with just a few clicks, and you don't have to worry about customers complaining that the product is damaged or low-quality.
SaleHoo Directory
The SaleHoo Directory is among the best places to find high-ticket dropshipping suppliers. It might sound slightly biased, but it's 100% true. The directory contains over 1.6 million products, all sold by vetted suppliers with a proven track record for product quality and service.
You can filter products according to the country of origin and the destination, which makes it easy to find local suppliers offering lower shipping costs and faster shipping times. Customers expect fast and efficient service when buying a high-ticket item.
Print-on-Demand Companies
Print-on-demand companies generally sell low-cost items like:
T-shirts
Hats
Mugs
You can add your custom design to any product they sell and then add it to your dropshipping store. But you can find some high-ticket products. Instead of T-shirts selling for $20, look for:
Rugs
Bedding
Furniture
Other items selling for $100+
4. Set up a Dropshipping Store
It's time to create a high-end dropshipping store to sell high-ticket products. So, what’s the next step? Setting up a store. You must remember a few extra things when creating a high-end dropshipping store, including:
Premium Branding
Branding becomes more important as a product's cost increases. If you want to sell high-ticket products, you need branding that matches the high-quality feel of your products. There are a bunch of luxury and high-end Shopify themes you can use, but they are premium themes that range from $30 to $300.
While visuals are important, you should also pay attention to your web copy. If you target a luxury audience, ditch the slang and use a more professional tone. You can check out examples of luxury brands in your niche to get some inspiration and find out what will work for your audience.
Professional Product Photos
Product photos are vital for every eCommerce store. But they are crucial for high-ticket items. If you're selling a luxury watch that costs hundreds of dollars and you recycle a primary image from AliExpress, it won't look good. And it will cost you sales.
Elevate Your Brand with Professional Product Photography
Consider hiring a professional photographer to get some great shots of your products. You can take photos using your digital camera or smartphone if you know your aperture from your white balance. This simple tip can help you stand out from competitors who haven't tried to create custom images.
Customer Service
Customers expect exceptional customer service when they spend a lot of money. That's why business class tickets are better than coach and why a fancy Italian restaurant offers a much better dining experience than a McDonald's.
Prioritizing Customer Service for High-Ticket Dropshipping
The same principle applies to eCommerce. Your customers will expect excellent customer service if you sell a high-ticket dropshipping product. Nobody wants to wait days to receive a reply to a customer service inquiry, but it's even more annoying if they just spent $1,000 on a high-end item.
Ensure you answer customer queries as soon as possible, keep the customer updated, and reach out to see if they are satisfied with their purchase.
5. High Ticket Dropshipping Marketing
The next step is to attract potential customers with a marketing strategy. Marketing high-ticket products can be more challenging than low-cost items. You'll need help generating impulse purchases, so you need to be more tactical.
Three marketing strategies work well for high-ticket products:
Google Shopping Ads
Google Shopping Ads are a great way to get your products in front of people who are actively searching for a product. You can get your product to appear at the top of the search results, and you only pay a fee when a shopper clicks on your ad. Instead of trying to stand out on a cluttered social media feed, you can target the people close to making a purchase.
Search Engine Optimization (SEO)
We've already mentioned how shoppers looking to buy a high-ticket item do lots of research before they commit to purchasing a product. So, where do they research products? Well, most people turn to search engines to try and find:
Guides
Comparison posts
Reviews
The Power of SEO for eCommerce
With a solid SEO strategy, you can rank high for the search terms your potential customers are using and generate lots of traffic that you can direct to your product pages. Keyword research is vital here. If you look at a keyword like 'men watch,’ you'll see that it generates a high search volume, but it's also tough to rank for.
Smart Targeting for Maximum Impact
Instead of competing with Rolex and Cartier, try to find related keywords that are easier to rank for. These search terms still generate much traffic but have lower keyword difficulty. Be smart about the keywords you target and maximize your resources by targeting terms where you can make it onto the first page of search results.
Influencer Marketing
Influencer Marketing for high-ticket dropshipping. For this one, we're going to get some insights from Kamil Sattar on how he used influencer marketing as part of his high-ticket dropshipping marketing strategy:
"I tend to find YouTube does work the best for this type of dropshipping just because the people that go on YouTube tend to have more money. If you're thinking about the tech industry, YouTube is massive for that, and the furniture industry, YouTube is a master, so I find that YouTube influencers are the best."
The key to successful influencer marketing is research. Before you work with any influencers, you want to verify that they have a real following that fits your target audience. You can use Social Blade to check out potential influencer partners on YouTube.
Analyzing Subscriber Growth
If you see a big jump in total subscribers, it's worth checking out the videos the influencer released during that period. The example below shows that the total weekly subscribers had a sharp increase. If the videos released during that period didn't generate higher-than-average views, it could indicate that they are buying followers. That's it! With the right:
Products
Suppliers
Stores
Marketing
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Ad spy tool to track advertising activity across multiple stores, allowing you to spot trending products and winning marketing strategies.
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Ecommerce merchants sell these high-ticket dropshipping products at higher prices based on the quality of the materials and the personal significance associated with special occasions like anniversaries and holidays. Businesses dropshipping jewelry are entering a large market; the worldwide jewelry market is expected to reach more than $310 billion by the end of 2024, with an annual growth rate of 3.53% from 2024 through 2028.
Here are some specific examples of high-ticket jewelry items to consider:
1. Rings
2. Watches
3. Necklaces
4. Earrings
5. Bracelets
Outdoor Equipment
Ecommerce merchants can sell outdoor equipment at high prices since these products require more expensive materials and intricate designs. With a projected market volume of $1.61 billion by 2029 in the United States, customers continue to purchase high-ticket outdoor products at a premium price, including:
6. Tents
7. Kayaks
8. Backpacks
9. Skis
10. Sleeping bags
Furniture
High-ticket dropshippers can also consider selling high-end furniture. In 2024, the worldwide furniture market is projected to exceed $766 billion in revenue, with living room furniture comprising the most significant segment at $227.7 billion. Here are a few specific examples of products a high-ticket dropshipping store could explore in this category:
11. Sofas
12. Office chairs
13. Lamps
14. Dining sets
15. Patio furniture
Electronics
As electronics products become more integrated with everyday life, the market proliferates. The global revenue for electronics is expected to reach $847.9 billion by 2029. There are several high-ticket dropshipping products to consider in the electronics space, including:
16. Speakers
17. Smartphones
18. Cameras
19. Drones
20. Computers
Tech Gadgets
2024 is shaping up to be a landmark year for technological innovations. From enhancing our virtual experiences to adding a touch of sophistication to our daily tasks, the upcoming tech gadgets promise a blend of luxury and functionality.
Best 9 Tips for Choosing Winning Dropshipping Products
1. Don’t Limit Your Product Selection to Top-Rated Products on Amazon or eBay
Newbies to the dropshipping game often make the mistake of limiting their selection of items to top sellers on online marketplaces like Amazon and eBay. Sure, these products are flying off the shelves but they’re also likely being sold by hundreds, if not thousands, of other dropshippers.
Finding Your Place in a Competitive Market
Pick items with promise but few sellers. This gives your freshly founded firm a chance at survival in a market with slim profit margins. You may get specialized ideas from sites like Amazon or eBay but don’t think of selling the same thing as them. You won’t be able to compete with them.
2. Try to Look through Older Products
Some people refuse to look at older dropshipping items because they believe they cannot sell them economically. The truth is that most products go through stages. Many dropshippers will begin selling a new successful dropshipping item as soon as it becomes available.
Product Lifecycle in Dropshipping
As more and more businesses and commercials are developed around the product, competition will continue to increase. At some point, a sizable portion of the target market will have purchased the product, and promotions will lose their appeal. As a result, the product will become less profitable and be sold by fewer dropshipping businesses.
Some older dropshipping items will be noticed. Yet, that doesn’t mean there isn’t a market for them. Customers for products are constantly changing as new wants and interests develop. Due to this, an outdated dropshipping product is currently lucrative!
3. Investigate Shops That Are Currently Offering the Item
When you start looking for new products to dropship, you’ll naturally begin considering selling methods. You may think of the many marketing strategies you could employ, the complementing items you could offer, or the product imagery you could utilize. Nonetheless, it might be challenging to see some things as they would appear in your dropshipping business.
In this situation, checking out other retailers to see how they sell it is a terrific idea!
4. Don’t Blindly Trust Product Insights
Product research tools may give you a wealth of knowledge on a particular product. This could include:
Product competition details
Excellent selling price
Profit margin
The Limitations of Product Research Tools
Because it’s virtually impossible for a product research tool to keep track of every retailer, supplier, and order for all the items it displays, the suggested selling price is rarely the best one for the product. You require a suitable pricing plan to determine the selling price to optimize your profits.
Using a proper pricing strategy will help you choose the optimal selling price for your product based on the product’s perceived worth, your target market, and the cost of the product.
5. Be Mindful of Any Potential Seasonality Impacts
Some products perform best during a specific season. For instance, offering Christmas items throughout the holiday season will be simplest—the demand for Halloween-related goods, which peaks before Halloween, is the same.
Understanding Your Audience's Needs
The key takeaway is that while a product you saw may have some appealing qualities, you must also consider the season and the location of the audience you intend to reach. If you decide to offer a product susceptible to seasonality, remember that it won’t be simple to sell the product all year long, and you’ll probably need to transition to new items during the year. Google Trends is an excellent resource for determining consumer interest in a specific item or market.
6. Use Crucial Dropshipping Tool to Do Efficient Searches
Selecting the products you want to sell via dropshipping might be complex. Fortunately, an excellent dropshipping tool has several resources that assist you in determining which products are the most fantastic fit for your dropshipping company. Also, they can help us keep track of inventories and costs, enabling us to choose products with knowledge. These technologies will enhance your company’s marketing and research initiatives while saving you significant time and money.
7. Low Costs to Draw Consumers
Consumers are becoming more knowledgeable and ethical today, especially regarding online buying. As a result, price comparison between different sellers is the first step individuals take when making purchases online. You may decrease the prices of your dropshipping products by picking suppliers that give reasonable offers and choosing a supply chain that doesn’t contain unneeded intermediaries or mediators.
Consider choosing a shorter, more compact channel with minimal intermediates. Since the cost of your product will increase with each new intermediary, the shipping procedure will only get more complex and inefficient.
Your Gateway to Dropshipping Products
One of the most significant places for this is AliExpress. DSers can support you in your endeavor. It has a sizable database with over two million AliExpress items, tens of thousands of niches, and over 800,000 businesses associated with various niches with their statistics. The numerous criteria would simplify, expand accessibility, and speed up product search.
8. Taking into Account Weight, Dimensions, and the Country of Shipment
When choosing the items for your dropshipping business, consider factors like:
Product size
Weight
Country of distribution
Considerations for Shipping and Costs
These details can seem minor to a novice, but seasoned sellers can see how they can influence how well or poorly your dropshipping business ultimately does. Try to select items that don’t weigh a lot, are compact, and are supplied from a nation you know has effective and quick delivery to lower your shipping expenses and, consequently, the ultimate rates for end customers.
9. Make Use of Social Media Networks for Your Benefit
Having a strong internet presence has several advantages. Social media gives you a powerful platform to communicate with your current consumers and find new potential clients. If you properly market your company, you’ll soon notice a difference in your sales. Via community trends, you may get a good indication of the most popular things while product-hunting on social media. You may also monitor your rivals to see which items generate the most interest.
How Do You Find High Ticket Dropshipping Suppliers?
Finding high-ticket dropshipping suppliers can be tricky, as they are more challenging than conventional ones. To help you break the ice, we’ll cover two methods for finding high-ticket dropshipping suppliers.
Use a “Regular” Dropshipping Supplier That Offers High-Ticket Products
The first option is using a regular dropshipping supplier that offers high-ticket products. One example of such a supplier is Spocket. Spocket is a platform that lets you connect to local dropshipping suppliers and easily upload their products to your online store if you're using one of these platforms:
Shopify
Wix
WooCommerce
BigCommerce
Although most people use Spocket for regular dropshipping stores, and it isn't created explicitly for high-ticket dropshipping, Spocket offers many products above $50 from US and EU suppliers. So, in theory, you could say Spocket is a high-ticket dropshipping supplier!
Find and Contact Manufacturers of High-Ticket Products
The second option of finding a high-ticket dropshipping supplier is much more complicated but potentially more lucrative. The advantage of using a dropshipping platform like Spocket is that you get many conveniences. However, the downside is that Spocket can be seen as a "middleman," meaning you could lower your costs if you buy your products directly from the manufacturer. So, that's exactly what I will cover here!
Finding a High-Ticket Product Manufacturer
To find a high-ticket dropshipping product manufacturer, you will first need a general idea of what product you want to sell. Once you have a product in mind, you can scour the internet for (local) manufacturers of that product. Contact manufacturers by phone or email to find suppliers and tell them you want to resell their products.
Establish Your Online Presence Before Reaching Out
Before contacting those manufacturers, you must already have an online store running in the same niche. Almost no manufacturer will begin working with a drop shipper that still needs a store. After all, they could risk their reputation if they manufacture branded products or a massive waste of time.
Contacting Exigo, a UK Treadmill Manufacturer
A manufacturer will want to check out your store beforehand and check if their product fits in your assortment. To give you an example of this method, I have searched for "treadmill manufacturer UK" on Google and found a supplier called Exigo. Exigo is a gym equipment manufacturer in the UK. If you have a fitness store, you could contact Exigo by phone and ask about the possibility of reselling their product!
5 Tips for Succeeding as a High-Ticket Dropshipper
1. Source Suppliers Carefully
High-ticket dropshipping is about quality rather than quantity. Vet your suppliers thoroughly. Ensure they have a good track record and that products meet your quality standards. Ask for samples. Verify the following:
Shipping speed
Costs
Packaging
Compare ongoing fees—like any platform or pre-order fees—and double-check that suppliers manufacture your items year-round, not seasonally.
2. Watch Your Branding
Premium products demand premium branding and marketing strategies. Your eCommerce branding should be rooted in a vital mission and clear values. This should be reinforced with:
Unique and consistent messaging
Robust web design
High-quality imagery
Memorable unboxing experience
All of these efforts will help build trust with potential customers and create an impression that lasts.
3. Incentivize and Reassure Customers
Since you’re selling expensive items, customers will likely need more convincing than they would to purchase a budget-friendly piece. Product pages and policies must be thoughtfully planned and positioned differently than for low-ticket items.
Building Trust and Credibility
For starters, include social proof like product reviews and customer testimonials on your product pages. You can even pull in user-generated content to your site, further building confidence in your brand. A thoughtful About Us page that shares your story and values can also increase brand affinity.
Customer-Centric Policies
A generous return policy can give customers the extra push they need to purchase (though ensure your supplier can accommodate). Offering free and fast shipping can also be a significant motivator, given how much customers already pay for your product.
4. Offer Financing
Because high-ticket items are more expensive, you'll want to offer various payment options that make your products accessible to more people. Options like buy now, pay later (aka BNPL) allow you to get paid upfront while offering some relief to your customers.
5. Prioritize Customer Service
Remember customer service at your online store. Offer shoppers an experience that mirrors your products' (high) quality. This will help you create repeat customers and build a strong reputation. Some ways to do this include expanding business hours and addressing customer questions quickly.
Offer live chat on your website and include a prominent toll-free phone number. Provide detailed tracking information for orders and proactively send shipping updates to your customers. Offer a white-glove service for assembling and installing large products like furniture. Ensure your return policy is:
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ShopHunter's Shopify sales tracker stands out because it helps eCommerce founders quickly validate product potential through a custom algorithm that estimates sales for entire stores and specific products. This feature allows users to rapidly narrow their focus during product research and reveals historical sales trends to help eCommerce store owners spot promising products on the rise.
An Ad Spy Tool for Spotting Trends Early
The platform goes beyond sales tracking with an ad spy tool that monitors advertising activity across stores. This combination of features allows users to spot trending products and successful marketing strategies early on.
Whether you're a dropshipper, a Shopify store owner, or someone looking to enter the eCommerce space, ShopHunter aims to streamline product research and reduce the risk of investing in low-performing items.