Penetrating into the dropshipping industry has never been easier than today. The eCommerce sector is flourishing and, as statistics show, by the end of 2024, eCommerce sales will account for over 21.8% of the retail sales in the world.
The dropshipping business model is a hot topic right now as more and more people are looking for ways to start a side business in order to earn more profits or to quit their 9-5 job and dedicate fully to their own business where they will be their own boss. This is especially true for millennials and proof of that is the fact that – even when they are happy at their job, around 60% of the millennials are open to a change in job position or company. Also, millennials are always forward-thinking and want to be in control of their finances, and thus, jobs.
That being said, dropshipping is an eCommerce business model that has gained a lot of popularity in recent years and continues to do so. The reason for this is the way it operates, which does not require heavy capital investment and is not time-consuming. However, there are some points that need to be carefully thought through which have a direct impact on how successful the business will be. Particularly, deciding what type of products you are going to sell and choosing the right dropshipping supplier are the highest points on the list.
This is where the doubts and uncertainties begin to come to the surface. Speaking of products, people willing to get in the dropshipping business often ask themselves whether they should select low or high-ticket items to dropship. Ultimately, this is an important decision that one needs to make because the type of products you are going to sell could affect how your dropshipping business expands in the future.
In fact, there are substantial differences between high ticket dropshipping and low ticket dropshipping, and, first, you need to learn their meaning. Later on, you can measure their differences and decide which type of products are the winning deal for you.
What are high-ticket items?
High-ticket items are considered high-priced products. In other words, products that are sold at much higher prices than others in their selected category are so-called high-ticket items.
High-ticket items can vary in size and range. In general, every eCommerce category can have high-ticket items – from expensive accessories like branded watches or sunglasses to premium branded apparel or shoes. It is safe to say that items that cost over $200 are defined as high-ticket items.
In essence, not everyone can afford to buy high-ticket items on a daily basis. This is why it is important to decide the type of audience you want to target with your dropshipping store.
What is high-ticket dropshipping?
Simply put, high ticket dropshipping is dropshipping products that are more expensive and made of premium materials. For example, nowadays, there are dropshippers that sell products that fall under the category of luxury items. Particularly, every type of luxury item is considered a high-ticket item.
You may ask yourself why to choose high-ticket items over low ticket items and the answer is the following. With high ticket dropshipping, you can increase your chances of gaining more profit. A real example of a professional dropshipper that earns over $44.000 in revenue per month selling high-ticket items is Sam, who has been selling BrandsGateway’s inventory for a while now.
Differences between high-ticket items and low-ticket items
The main difference between dropshipping high-ticket items versus dropshipping low-ticket items is the long-term profit you can make. In other words, by dropshipping high-ticket items, you get the opportunity to sell fewer items and earn a bigger profit. To put it differently, let’s say you are thinking about whether to sell cheap or luxury clothing and accessories. If we take handbags as an example, there are two different scenarios.
The first scenario is selling women’s bags for $30 manufactured and imported from locations that offer low manufacturing costs. This particular handbag costs $30, you may sell it for $49.99. This way, you’ll earn yourself $15.
The second scenario is selling authentic bags from renowned brands, like, for example, this Dolce & Gabbana bag you can source from BrandsGateway. You can sell this branded bag for a recommended price of €2,473 and the wholesale price that you will need to pay to BrandsGateway is €989. This means that by selling this bag, you can earn €1,484 in profits.
To conclude, by making one sale of a Dolce & Gabbana bag, you can gain big profits. With low ticket items such as a bag for €30, on the other hand, you will need to sell more or less 50 bags to earn the same profits, which is much harder to accomplish. You may ask yourself why. Because selling 50 bags is more complicated than selling 1 bag. You will have to invest time, money, and energy to find 50 leads and convert them to buy those bags. Even at a 10:1 ratio, the 10 sales you make from the low-ticket item still wouldn’t make that much compared to a single sale from the high-ticket item.
All in all, it’s not impossible to earn money by dropshipping low-ticket items, but this approach requires a larger investment. To be successful in that area, one needs to have at disposal a collection of numerous and versatile products. Furthermore, their online store should have a huge amount of daily traffic and a high conversion rate. Finally, low ticket items are usually sourced by Chinese suppliers who are widely known for several negative aspects:
- Uncertain transportation timelines
- Language barriers and communication difficulties
- Potential copyright and intellectual property issues
- Product quality issues
- Overly complicated returns
Why choose high-ticket over low-ticket dropshipping?
There are countless reasons why you should consider dropshipping high-ticket items instead of low ticket items:
- Having fewer orders of high-ticket items is better for a dropshipping business. First, because high-priced items are highly profitable and, second, you don’t have to spend much time processing them;
- When it comes to paid advertisements, if you dropship high-ticket items, you will only need to target specific buyer personas within certain developed countries that have larger financial power;
- It is a more sustainable business model as it involves selling authentic branded products, which fewer sellers do. This means less competition and more chances to stand out in the market;
- You will receive a lower number of product returns and customers’ complaints as high-ticket items are of premium quality in comparison to low-ticket items, which means the majority of your customers will be satisfied with their purchase.
Aside from the above-mentioned benefits, there is the most important one: the psychology of buying high-ticket items.
The psychology of buying high-ticket items
It’s undeniable that people will always manage to invest in buying things online, regardless if they are cheap or expensive. Most countries in the world have significantly wealthy populations that enjoy online shopping. Statistics show that the revenue in the eCommerce market in countries like the US, UK, Canada, and Australia is expected to reach $469,245m, $103,916m, $32,442m, and $29,700m respectively.
In particular, when it comes to the most popular segments in the eCommerce market, fashion has proven itself to be at the top. In the countries mentioned above, the fashion sector is the most popular among online buyers. This confirms that if you want to be successful in the dropshipping industry, you should focus on high-ticket items that belong to fashion.
The psychology of buying premium goods plays a big role in online shopping. Most of the time, people are purchasing goods online impulsively. Without much thinking, everyone buys things that they don’t need and this is human nature.
If we make a comparison between cheap low quality and expensive luxury goods, online buyers are more likely to spend a larger amount of money to buy themselves a good-quality fashion piece that would last longer than spend little money on trivial things that don’t have a long life span.
Best high-ticket fashion categories and items to dropship
High-ticket dropshipping niches are something you should explore in order to identify the most profitable high-ticket items to dropship. If you take into account the most popular eCommerce category which we mentioned above, you already know the ideal choice. To put it differently, the leading online shopping category is fashion. Therefore, selling high-ticket items that fall under this category will help you excel in the competitive dropshipping market.
The most lucrative choice when it comes to fashion categories is apparel and accessories from luxury brands and designers. More specifically, from the fashion category, you should put an accent on both women’s and men’s apparel, shoes, and accessories, particularly:
Women’s high-ticket fashion apparel to dropship
Women’s high-ticket fashion accessories to dropship
Men’s high-ticket fashion apparel to dropship
Men’s high-ticket fashion accessories to dropship
Examples of high-ticket items you can dropship
We can take these leather mesh pumps by Jimmy Choo as an example of a high-ticket item to dropship. As shown on the page and the photo below, this pair of shoes is available to dropship with BrandsGateway and their wholesale price amounts to €300 while their recommended selling price is €750. If you add this high-ticket item to your store’s collection, you have the possibility to earn €450 in profits with only one sale.
Another example of a high-ticket item that is very attractive and can bring great profits is this men’s watch by Gant which is available in BrandsGateway’s catalog. The wholesale price of the watch is just €50, and it is recommended to be sold for as minimum as €203, which can bring a minimum of €148 in profits.
Lastly, another example of a high-ticket item to dropship is this knit coat by Alpha Studio. Specifically, the wholesale price that BrandsGateway offers for this item to dropshipping store owners is €134, while the recommended price for selling the item is €494, which brings €360 in profits.
BrandsGateway as a dropshipping supplier that offers high-ticket fashion items
If you are into selling fashion pieces and targeting an audience that finds pleasure in buying high-ticket products, you got yourself a winning opportunity. The last, but not least important step that you need to take is to find a dropshipping supplier that specializes in selling high-ticket fashion items.
Before partnering up with a dropshipping supplier in a long term, you should look for the following characteristics in their service and offers:
- A wide selection of products from various luxury brands;
- Automated integration with eCommerce platforms (Shopify, WooCommerce, Shift4Shop, and others)
- Automated order placement and catalog synchronization;
- Fast worldwide delivery;
- No minimum order;
BrandsGateway is a dropshipping supplier that characterizes itself with the above-mentioned traits. Specifically, the company offers high-ticket items from more than 100 renowned brands which belong to the fashion segment. Moreover, BrandsGateway has developed its own plugin that integrates with dropshipping stores based on Shopify, WordPress (WooCommerce), and Shift4Shop. Their plugin is designed to automate the dropshipping process and offer dropshippers a seamless experience. First, it ensures automated order placement and processing, which makes the process fast and simple for both dropshippers, their customers, and BrandsGateway. Second, it provides automated catalog import, which is of great help as their catalog contains over 12,000 items, so the process of uploading them is quick and easy. Finally, BrandsGateway’s plugin provides the possibility for dropshippers to add their own preferred markups, which allows them to decide the price and the profits they would earn from their sales.
How to promote your high-ticket dropshipping store
Facebook is a powerful platform that can help you grow your business to its fullest potential by using its advertising opportunities. To put it differently, when advertising on Facebook, there are diverse marketing objectives you can choose from depending on what you are trying to achieve. Facebook allows you to select traffic, engagement, lead generation, and more – with them you can increase your brand awareness, conversions, or store visits.
When it comes to high-ticket dropshipping, it is essential to test the potential of your target audience by advertising specific products by attracting your potential customers to visit your store and make a purchase.
Instagram is a widely used social media platform that offers two main options for advertising a dropshipping store that sells branded products. You can team up with influencers or people that work as brand ambassadors and make a paid agreement with them to promote your products and services. Additionally, you can use the general paid advertising option, which allows you to sponsor a post or story directly from your business Instagram account without making an agreement with a brand advocate or influencer.
When it comes to the target audience, if you choose to go with an influencer you should carefully choose one that has followers that are interested in the type of products that you offer. Therefore, when selling fashion high-ticket items, you should go with an influencer that operates in the fashion niche because, in that way, your products will reach the right potential buyers. On the other hand, with the general type of advertising, you can directly select the type of audience and countries that you would want to target from your own business account.
In the last few years, TikTok has grown immensely in popularity, and nowadays, more and more businesses are turning to this platform’s advertising opportunities in order to expand their reach.
Even though there is a common misconception that TikTok users are teenagers between 13-19, in fact, the biggest percentage of users – 35% belongs to the age group between 19-29 years. This demographic is actually the one that is also interested in dropshipping, online shopping, and branded goods, therefore, it would be the perfect opportunity for you to promote your products through some of the types of video ads that TikTok offers.
SEO for high ticket dropshipping
Last but not least, aside from the advertising methods, another way to make your store for dropshipping high-ticket items stand out is by implementing SEO in your growth strategy. SEO for eCommerce stores might seem complex, but with the right techniques, you will be able to increase your store’s domain rating and SERP rankings.
When you are dropshipping high-ticket items, first you should focus on making your store visible in the SERPs by improving the meta titles and descriptions for your products pages. Second, you should create a blog where you can distribute valuable content that will appeal to your customers.
In a nutshell
Lastly, your decision should be based on your needs and requirements. You must put a plan and strategy into place to be successful in high-ticket dropshipping. As we mentioned in this article, you will need to define your buyer persona, its strengths, and its weaknesses and move up from there.