Do NOT Dropship High Ticket Products ($600 Profit Per Sale?!) Truth About High Ticket Dropshipping

Do NOT Dropship High Ticket Products ($600 Profit Per Sale?!) Truth About High Ticket Dropshipping

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Discover the truth about dropshipping high-ticket items as a beginner.
►► Free Ebook – 6 Steps to 6-Figure Stores: https://wholesaleted.com/4-step
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***OTHER LINKS MENTIONED IN THIS VIDEO***

►► 10 Sales Psychology Hacks: https://youtu.be/q-7_oc3sU5Y
►► Do Not Dropship These Items: https://youtu.be/afaknQqkiAw
►► How Much Money Do You Need to Dropship: https://youtu.be/21P5uL7NCDU

QUESTION: What does the phrase “high ticket” and “low ticket” mean?

The phrases “high ticket” and “low ticket” refer to the prices of the items you are selling. A “low ticket” item would be a low-cost item like a mug. A high-ticket item would be a couch that costs hundreds to thousands of dollars. So a high ticket Shopify dropshipping store might be a furniture store where you sell things like couches, tables and chairs.

QUESTION: Why would you choose to build a high ticket dropshipping store?

The reason why a lot of people are excited at the idea of this is because you can earn a lot of money from just a single sale. If you make a 30% profit from a $10 sale of a mug, then that is only $3 in profit. Whereas, if you sold a $1,000 couch and made a 30% profit margin, then you would make $300. In theory, it should be easiest to sell a single large item versus a lot of smaller items.

QUESTION: Is it easier to make money from a high ticket dropshipping store?

Our opinion is that for most beginners, they will struggle to make money from selling high ticket items compared to low ticket products. Why? Well it’s because there is a very different mentality of a customer when they come to purchase an expensive product versus a cheaper one.

When customers come to purchase expensive items like couches, they do not take those purchases lightly. Spending $1,000 on an item like a couch is a large purchase, and so customers will research their options before they purchase to purchase the best couch.

Another reason why customers will take a lot of time to research their options is because expensive items like couches tend to be big and bulky. Thus if a customer is looking to purchase one, they will be very analytical in their purchase, as they will need to consider both the logistics of receiving the couch, and in getting rid of their old one.

It is also very difficult to refund and exchange large, bulky items like this, so customers will be researching their options carefully do that they don’t pick the wrong one. It would also be very expensive and frustrating to purchase a different couch if they didn’t like the first one (let alone the annoyance in having to get rid of the one they didn’t like). So they’ll be researching all of their options carefully to make the right choice the first time.

Because customers will be researching their options, it means that you’ll now be competing with big brands and stores. For example, if you opened a furniture Shopify store, you’d now be competing against brands like IKEA, Pottery Barn and Ashley Homestore that will show up when customers start to Google and search for their different options.

To be able to compete with these big brands, you will need to:

#1: Build up enormous trust between you and the potential customer

High ticket purchases are a big deal for customers. They will want to be able to trust that they can trust you’ll be selling them a high quaity product, and that it will be delivered to them. Big brands like IKEA already have that trust built up with customers already.

#2: You will need to send the customer through a sales funnel.

A simple, basic Shopify store is not going to be enough. You are going to have to create a much slicker looking store and have an excellent, well writen and designed sales page. You’ll also need to provide a phone number, and be prepared to close sales over the phone.

You will also need to have a LOT of start-up money set aside as you’ll need to be able to buy these items when customer purchase them.

Whereas, with low ticket dropshipping, you are selling items that cost $15 or less. They are so cheap that a significant group of customers purchase them impulsively, and they don’t do a search to price-check the competition because they think they think the item you’re selling is such a good deal already. This form of dropshipping also requires less start-up money.

For these reasons, we recommend that unless beginners have a mentor to guide them through the process of setting a store like this up and running one, that they stick to lower cost products.

34 Comments

  1. [Sorry for the long comment]
    Thank you so much for making this video and addressing this! I've also noticed this come up in either other videos or on comments where people feel like selling more expensive items is better/easier/faster/more profitable and so on. I currently work for an online retailer here in Australia and we sell electrical products/appliances that range from $150-$2500+ and there are definitely a few major challenges which is why I am here learning about dropshipping lower priced items.

    One of the major ones is, and as mentioned in this video, trust. I spend a very large portion of my time talking on the phone to customers and replying to emails as a lot of our customers are either not tech savvy enough to shop online or do not trust it. I think this has to do partly with the age of the customers, I've noticed usually the people who can afford to spend several hundred dollars on products that aren't necessities, are usually older as younger people tend to not have as much savings or income. I can say that at least a 3rd of all my sales are done over the phone while all of my bigger sales go through the phone or over emails, which can sometimes take a couple of weeks to close.

    Another thing though which I think might not be obvious to some is that when selling more expensive items, customers have a much higher expectation for both customer service and quality of item. For us selling expensive electrical products if there is any fault or issue (weather it is manufacturing fault or not) customers will not hold back and expect us to solve the problem ASAP. In our case this is even harder as the customers also need to get an electrician to install or replace these products (here in Australia you just about need to have a license just to turn on a switch 😂) so if there is a problem, a lot of the customers want us to replace the item and also pay for their electrician to reinstall it as well. This is even despite the products having manufacturer’s warranty that usually covers labour costs as well, but many customers do not care and they expect you to solve all the problems instantly. I spend a lot of time on customer support and trying to deal with problems, even though they may not be a direct result of product faults, for me this is the worst part and the biggest headache, but it is also one of the most important and crucial things I need to get right in order to build up trust and have good reputation.

    It is because of this (and many other challenges with selling expensive items) that I am very actively looking to start selling lower cost items. I think the people who would be interested in buying lower cost items are much better suited to shop on dropshipping stores, for example I am much more comfortable purchasing something fairly cheap online even if I don’t really know the store, then compared to my parents who wouldn’t. Also, if it is something inexpensive and there is an issue, it’s not a significant loss. While on the selling side, if a customer has a problem with a low cost item, as a last resort I can refund them their money and only loose out on the $2-$10 or so that it cost on Aliexpress plus ads costs, which isn’t a huge loss

    Sorry that this comment is so long, I don’t mean to come off as ranting but more to share my experience which hopefully might help to give some insight. I’m also not saying that it can’t be done, but that it’s not necessarily as simple.

    In summary to those who can’t be bothered reading my long story: In my experience selling expensive items online takes a huge amount of effort and time, and after sale customer support is a never ending headache. Dropshipping low priced items to me looks like it has the potential to bring in a good amount of profits while still being simple, especially when starting out.

  2. I love this channel, such great info. Can’t wait to get the course

  3. I saw a FB ad for some business guru selling the idea of high ticket dropshipping. It sounded like a terrible idea right away – those customers are far more discerning, will do more research for best product /price and rightfully expect superior customer service. Think about it – would YOU order something so high value from a site you don't know, without exploring other options?

  4. Hi Sarah?
    Which extension or app do you use to check if the other seller has the better price just like in your vid ?Thank you!

  5. Time for a battle rap with Dropship Lifestyle

  6. Ahh the irony of seeing Anton Kraly's webinar ad on "selling high ticket items" at the start of this video 🤣👌🏼
    Love your work as always Sarah! All the best from Western Australia 💚🤙🏼

  7. I disagree. I dropship both high end and low end items. I think it’s a smart idea to do both. Especially if there is a need for the specific item you want to drop ship. I’ll give you an example. I started dropshipping a 3D printer last year that got marked down from 6000 dollars to 3000. I ended up dropshipping it for its original price and made 10 sales in 3 months. You have to understand that there are people who have money who are willing to spend it with out researching better deals. If I’m looking for a 3D printer and I have money to spend; then I’m not too worried about the deal I’m getting. Some people are impulsive buyers. I say dropship everything you can. As long as it’s getting sales and people are enjoying the product. Then do it. Simple as that.

  8. You want to work a job in customer service department by pushing for high volumes of traffic and returns

  9. How do I find a mentor that doesn't charge thousands of dollars at one time?

  10. Can we use Google ads instead of Facebook ads?

  11. You explain things so clearly. Very, very good video.

  12. I don't agree, but I do not use alliexpress or shopifly

  13. Great info. Perspective on high ticket items that I really never thought about. Keep up the quality content, Cheers!

  14. i made a wolf store never tried the mug tho xD

  15. that mug is damn expensive

  16. i can buy a better kayak for 450 balanced kitted n all , pffft

  17. Thank you for this dropshipping video to educate people. Check this out https://preview.tinyurl.com/y4vwoo6g

  18. you cant compete against amazon with low ticket items using aliexpress. no one will wait 3 weeks for delivery anymore when the pricing is the same. been there, done that. best to find your niche industry and products. work with US based manufacturers, wholesalers and distributors. there is a market for higher priced products as well. in addition to facebook ads, you also should be on google adwords and instagram (posting products).

    facebook ads shows your ad to a target audience who may or may not be motivated buyers or even interested and with adwords people who click have an greater intent to buy since they are looking for your product. true you are competing against other companies showing ads on adwords versus facedbook serving your ad up to a feed – so try both and see what works best for you.

    as for as pricing i would shoot for products over $150 retail up to several $1,000's. you must know how to research products, shipping and return policies, white labeling, time to ship, product availability, discounts. competitor pricing, etc.

  19. This is sad coming from Sarah. Especially, the misconception of high ticket items are just Furniture.

  20. I need your opinion on treespring.. I'm really interested in it but not sure should start

  21. Preach sister, PREACH !!! You just crushed all these smart "dummies!" LOLOLOL

  22. I now want the wolf mug

  23. Sarah u are beautiful,, and really helpful information! Thank you

  24. Who's the animated character in your intro? I'm interested in knowing

  25. Thank you as always Sarah. Sending thoughts your way after the terrible incident which was horrific and so not expected in such a peaceful country as New Zealand.

  26. Your so awesome! You should be teaching marketing in a top university

  27. 0 Comments 43k views O.o?

  28. You have a lot of misconceptions about doing High Ticket Dropshipping, Sara. I'd refer people to Kevin David's youtube video: How To Sell High Ticket Products on Dropshipping … Peace!

  29. Looks to me, says the person who hasn't yet opened her store… like both high and low ticket items have their place. Sarah seems to be saying that for a noob such as myself, low ticket items might be easier. Perhaps we can agree to disagree. 😉

  30. This was a great video! And it settled me into NOT selling high ticket items…at least right now. Being real, I do not currently have the confident skills to make a site that's good enough for high ticket items. But perhaps one day (: But man, you probably just saved me SO MUCH pain.

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