Written by Lyndon Scott

August 25

High Ticket Dropshipping : The Good, The Bad, The Ugly

The world of eCommerce is always changing. With the rise of platforms like Shopify and WooCommerce, anyone can become a dropshipping entrepreneur.

The growth in popularity has also led to an increase in competition as more people enter this space.

Dropshippers who are looking for ways to stand out from the crowd have started using high ticket products or at least higher-priced items in their stores.

This is partly due to rising ad costs, but there are a whole range of reasons why and why not to start dropshipping high ticket items

In this article, we’ll explore what it’s like to sell high ticket items as well as some niches that offer better potential than others.

High Ticket Products

What Is High Ticket Dropshipping?

Dropshipping is a retail model where the seller doesn’t have to invest in inventory. Instead, they simply list items on their website for sale and deliver them directly from their supplier when customers order products.

As such, there’s no risk of overestimating demand or underestimating supply if you’re dropshipping because these are all manufactured by other companies – so long as you know what you’re doing!

High ticket dropshipping is simply selling products with a much higher price than your average products.

Whether it’s jewelry with price tags over $1000 or electronics costing upwards of $300, many online eCom store owners now offer luxury pieces through this format.

What Are The Advantages Of High Ticket Dropshipping?

Dropshipping high-ticket items can be a great way to make money. If you’ve got the capital to invest in ads and the patience to find the right suppliers, this could actually work really well for your business because of two reasons:

Higher Margins

This is the most obvious benefit of high ticket dropshipping. You’re going to make a lot more money per sale.

Fewer Customer Services Issues

Because you’re doing fewer sales and seller higher quality products, you are likely to have a lot less customer service issues to deal with. You’ll also be dealing with much more reputable suppliers who should be able to handle any serious problems with their products.

What Are The Disadvantages Of High Ticket Dropshipping?

Whilst selling less and making more might sound like a dropshipper’s dream come true, you need to be aware of the downsides of high ticket dropshipping before you dive into this eCom model.

No Impulse Buying

The primary downside is that high ticket purchases are not usually impulse purchases. This means that customers usually like to shop around before they commit, and it also generally rules out Facebook Ads (which I’ll explain further down in this article).

Skeptical Customers

Many people are skeptical about buying luxury goods online – especially because they want to try them out first before committing their hard-earned cash.

Higher Startup Costs

Just like regular dropshipping, you need to pay your supplier to ship the product to your customer. You may not have received your money from PayPal or Stripe yet so you will have to foot the bill.

You can also forget the idea of getting a cost per purchase for $20 like you can on Facebook. You’ll have to have a decent amount of ad spend handy to start high ticket dropshipping.

Let’s take a look at some of the best niches for high ticket dropshipping, before discussing the best practices if this model is something you want to pursue.

What Are The Best Niches For High Ticket Dropshipping?

Some niches will likely work better for high ticket dropshipping than others. You need to research your niche properly and make sure there is good demand for your product before you launch.

Here are some of the more popular high ticket dropshipping niches:

Electric Bikes & Scooters

Google Trends Electric Bicycle

If you’re researching this niche and you take a look at Google Trends, you’ll see that it is showing a steady increase over the past 5 years. Whilst it does have some seasonal peaks and troughs, the electric bike and scooter market is continuing to grow.

Furniture & Home Decor

In general, furniture and home decor is an evergreen niche that will always have demand however if you are going into this niche, you’ll want to niche down a little more. Perhaps specialize in a certain style of furniture and decor, rather than approaching this market with a general range of products.

Automotive Equipment & Accessories

Car & trucks enthusiasts spend a small fortune and that’s not likely to change anytime soon. As with the furniture and home decor, you might want to explore the auto space a little closer and settle on a specific niche like off-roading. Take for example these Google Shopping Ads for off-road shock absorbers.

Offroad Shocks Google Shopping Ads

High Ticket Dropshipping Best Practices

If you want to start high ticket dropshipping, there are a few considerations to keep in mind before taking the leap.

Build Trust

Loox Reviews

Because this isn’t an impulse purchase, you need to spend more time building trust with your customer. There are so many ways you can do this but things like customer reviews and video tutorials of the product can help to put your future customer’s minds at ease.

Find a Reputable Supplier

You will need to spend a lot of time finding the right supplier for your high ticket products because if something goes wrong, it’s on you. Make sure they have good reviews and have been in business for a while and double-check all of their policies before using them as your supplier.

Ensure You Have Good Shipping

This goes hand in hand with finding a good supplier. Customers that spend large amounts of money on their online purchase don’t want to wait 4 weeks for it to arrive. Make sure you have explored all of the premium shipping options available and don’t try and save money by going with cheaper options.

The More Information, The Better

Your customer can’t see or touch the product so you should have plenty of photos, videos, and instructions on how to use the product. Trust me, you do not want customers receiving a product that is different from what they expected. Returns for high ticket items are very costly for you.

Running Ads For High Ticket Dropshipping Items

This is a money-maker for some but it does take quite a bit of time, effort, and experience.

As I previously mentioned, Facebook Ads are most likely not going to be the right option for you with high ticket dropshipping.

The best way to go about running ads for high ticket items is through Google Shopping Ads or YouTube Ads.

Google Shopping High Ticket Ads

You want to place your product in front of people that are already searching for it, rather than relying on impulse purchases like we do with Facebook Ads.

You can use Facebook Ads for retargeting, but don’t forget about things like email marketing, Google Display Ads (GDN), Native Ads, and other advertising methods when it comes to high ticket dropshipping.

The Final Word on High Ticket Dropshipping

I hope this article has helped you to see the pros and cons of high ticket dropshipping and made some decisions about whether or not it’s right for your business.

Whilst there are a lot of positives, like having a higher profit margin, you are also putting a lot more at risk with this model so make sure you do your research before starting.

If you’re new to eCommerce you should take some time to learn the basics of getting started with Shopify first, before diving into high ticket dropshipping.

Have you had experience with high ticket dropshipping or have you explored the idea before? I would love to hear your questions and thoughts below in the comments section.

Thanks for reading!

About the author 

Lyndon Scott

After leaving behind a career in the corporate property development world, Lyndon founded Carts+Conversions in addition to running his own eCommerce brands. Lyndon enjoys writing about different ways to run a successful Shopify eCommerce business so if you have any requests, please feel free to make contact! Thank you for reading.

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