January 18, 2020
High Ticket Dropshipping vs Low Ticket Dropshipping Products πŸ’΅πŸ’»πŸ“ˆ

High Ticket Dropshipping vs Low Ticket Dropshipping Products πŸ’΅πŸ’»πŸ“ˆ


– Let’s talk about
high ticket dropshipping versus low-ticket dropshipping products. In this short video we are
gonna cover the definition of high-ticket dropshipping, the definition of low-ticket dropshipping, the pros and cons of both
high-ticket dropshipping and low-ticket dropshipping, some of the additional benefits that come along with
high-ticket dropshipping, how to transition from
low-ticket e-commerce to high-ticket e-commerce
dropshipped products, and the best products for
high-ticket dropshipping. So let’s go ahead and get
into this week’s episode of Drop Ship Weekly. (uplifting music) So the definition of high-ticket dropshipping is selling
products for over $200. Now, there’s really not
a price ceiling here. We have sold products for over 5,000, but in general we’re looking
at anything above $200. So that means low-ticket dropshipping, you are selling products
at a retail price, meaning what you charge your
customers, for less than $200. So let’s talk about why we
do high-ticket dropshipping and the pros and cons of high-ticket dropshipping
compared to low-ticket. And the best way I can
just show this to you is, let’s say I was gifting
you an actual store, like a retail storefront, and let’s just say I gave you an option. I said, “You can have a Dollar Tree,” which is a store that sells
everything for a dollar, “or you can have a Design
Within Reach store,” which is a high-end furniture store where I would have to assume their average order value is over $3,000. So if you could choose
one, which one do you want? Well, if you think through this at all, you would choose the one that
has an average order value of thousands and thousands of dollars. Now, why is that? Because it makes more money. When people come in and buy
something, you get paid. It’s a much more profitable business than having a bunch of people come through your store every day, buy 20 items and give you $20, and the next one, and the next one, and the next one. No, you’d rather have a
few customers come in, spend big money, where you
actually can earn a real profit. So this is the idea. This is why we want to
focus on high-ticket things. And you may be thinking, okay,
but isn’t a negative thing with high-ticket
dropshipping the fact that it is just a more expensive
business to get into? I could see myself possibly
selling low-ticket products because where’s the risk? Whereas high-ticket products,
it’s a different game. And that’s true, but
this is the beauty of it. What I’m giving you
right now in education is basically the option of telling you you could have either of these. If you’re going to do
this, if you’re going to build a dropshipping store, and you’re going to put your time into actually making one of these, why not put your time into the one that has a bigger potential, that has a bigger upside, the one using high-ticket dropshipping? ‘Cause remember, the
beauty of dropshipping is you’re not laying out any money before you actually get sales. You’re not buying this inventory until the customer pays you. So again, you have this choice and I am giving you this decision, for which one you wanna build, and why wouldn’t you choose the one that has a higher profit potential? Now, when you think of it a different way, with the pros and cons of
high-ticket dropshipping versus low-ticket dropshipping, we can just compare and
contrast two different products. On the left we have cellphone cases and on the right we have
a stand up paddle board. Now let’s look at each of
these in a little more detail and let’s just say you wanted to dropship low-ticket products,
being the cellphone case. Well, with cellphone cases, they’re easy to ship,
there’s a huge demand, and there’s lots of styles and variations. So that could be thought of as pros to dropshipping low-ticket products. Whereas with high-ticket dropshipping and a product like a
stand up paddle board, they’re large and heavy to ship, they’re expensive, and
there’s a smaller market, meaning that there’s a lot less people that wanna buy a
paddleboard than the amount of people that wanna buy a cellphone case. And because of that, most people gravitate towards the low-ticket products when they’re getting into
e-commerce and dropshipping, and they choose something like
cellphone cases to dropship. And here’s the thing. That is not what you want to do because high-ticket dropshipping actually gives you the ability and the ease to sell less and earn more. And it comes down to
a very simple equation that I call units sold versus profit. This is very important. When I first realized this it
totally changed my business. I personally got started
by selling cookies online, average order value of about 15 bucks, and once I realized this, I
totally shifted my business. So lemme show you this quick little graph that I put together for you. On the left we have the two products. We have cellphone cases
and stand up paddle boards. Then we have sale price, and we’ll just use round
numbers here to make math easy. And for cellphone cases, average
retail sale price is $10. stand up paddle boards, closer to $1,000. Now, if you do this right, if you build a dropshipping store using my Drop Ship Lifestyle system, you can get a profit margin
typically between 25 and 30%. Again, we’re gonna use round
numbers for simplicity. So we’re gonna say net profit of 30%. That means profit per sale, every time you sell a cellphone case you would keep $3 as that profit, and every time you sell
a stand up paddle board you would keep $300 as net profit for the same amount of work. And understanding this concept and using it in your business, again, dollar store versus
Design Within Reach, once you can leverage this and you can make your whole business about high-ticket dropshipping
and high-ticket products, you will be well on your
way to being successful with this whole business model. Let’s just do an example here, and we’ll use these same two products. And let’s say you’re brand new to all this and you say,
“You know what, Anton? “My goal for my target monthly profit, “net profit, is just $3,000 a month. “I want an extra $3,000 a
month in my bank account.” Okay, well, let’s look at our examples. If you want that with cellphone cases, you make the $3 a sale, and if you make 300 with
stand up paddle boards, how many units, how many sales, would you need each month to reach your target monthly profit? Well, with cellphone cases, you would need to sell
1,000 every single month, whereas paddleboards, you would
only need to sell 10 units. That’s like one sale every three days. And if you’ve ever been in sales or customer service before, you know that 1,000 customers a month, it’s enough to make
you pull your hair out. It’s enough to have a headache. It’s enough to need a team to support. On the other hand, 10 sales a
month, a sale every few days, you can easily handle that on your own, and again, you’ll be
making the same amount of money as the person doing
low-ticket dropshipping that’s pulling their hair out, thinking, why did I even get into this business? Go with high-ticket dropshipping. You will make more money per sale. Here is a screenshot from one of our members-only Facebook groups. This is for my coaching program, Drop Ship Lifestyle, by the way. If you’re not part of it yet, go to dropshiplifestyle.com/webinar. But Iria posted this, and
they got one sale for $5,720. One sale. Now, if you take that 30% profit margin and you take the amount of
money this order came in for, $5,720, you times it by 30%, you get a net profit of
$1,716 from one sale. So while Iria was doing this,
there was people out there, selling cellphone cases,
doing the same amount of work, but earning $3. Who would you rather be? It’s pretty obvious that
high-ticket dropshipping is better than low-ticket. And here’s just a few of the main reasons. The first is that there’s
less customer service, and that’s because you’re
having less customers, and less customers is a good thing. You’ll have less orders
but make more money. You also have less orders to process, so again, it takes less
time to run the business, and one of the huge benefits is that it’s easier to buy paid traffic. Now, if you follow Drop Ship Lifestyle, you know that I’m a huge
fan of paid traffic, and when you’re not making
much money per sale, it’s almost impossible
to do this profitably. Let’s look at this example where we have our cellphone case
and our paddleboard again, and we’re looking at how many
units we would need to sell. So 1,000 cellphone cases or
10 stand up paddle boards. Again, this is to reach
our target monthly profit. Now, our conversion rate with
a Drop Ship Lifestyle store is typically about two and a half percent. That means with cellphone cases we would need 40,000 people to visit our website every month
to get 1,000 sales. Whereas with stand up paddle boards, we would only need 400 targeted visitors. And if you have to spend
money on 40,000 visits, you know how expensive that is. You know it’s gonna be next to impossible to have a profit at the end of the day. But 400 targeted visits, anybody can get that to their website. It is not that hard if you
have a system to follow. So you may be watching this right now and you may be thinking,
hey, listen, Anton. I’m doing low-ticket dropshipping. I hear what you’re saying because
my store’s not profitable. I can’t get Facebook Ads profitable. Customers aren’t happy ’cause
shipping’s taking too long. What can I do? Well, the good news is, if you already have a
Shopify store set up, you can transition from
low-ticket to high-ticket. My advice is, if there is a
higher-priced product range with what you sell, move up the ladder. Focus on the more expensive products and phase out the low-ticket ones. Now, maybe you can’t do this. Maybe what you’re selling does not have a high-ticket
price range product line. And if that’s the case, then my advice is just go ahead and build a
brand new Shopify store using your knowledge for how
you built the first one, but focused on a high-ticket niche, and focus on going with
where the real money is and where the real opportunity is. Now, if you wanna know more about the best products for
high-ticket dropshipping, the products that fit my niche criteria for high-ticket dropshipping, I am gonna post a link in the cards and below this video to a video I did on high-ticket dropshipping
niche selection, and I’m also going to go ahead and leave this link up
if you wanna register for my webinar, which
would be the next step for how to not just learn more about niche selection and
high-ticket dropshipping, but to get my free list of 237 niches that are high-ticket dropship-friendly. So the link for this is
dropshiplifestyle.com/webinar and I will link to the
additional resources below this video. As always, any questions, let me know, and if you got value from this video, please do give it a thumbs-up and leave me a comment
letting me know below. With that being said,
guys, I will talk to you all in the next episode
of Drop Ship Weekly. See ya. (inspirational music)

28 thoughts on “High Ticket Dropshipping vs Low Ticket Dropshipping Products πŸ’΅πŸ’»πŸ“ˆ

  1. Interesting video. This is an issue I've been contemplating for a long time.
    The big question is if conversion rate for high ticket really is the same as for low ticket. I would assume (and from my experience selling both cheaper and more expensive items – though not in the $200 mark) that CR for high ticket is much lower than for lower ticket items which are much more impulse driven.
    Another thing I've experienced is that with lower ticket items (retail price of $20-$30) you get data much quicker, so you can make adjustments. With high ticket, everything is slower and "heavier", and you have to spend a lot more money to get the same amount of data.
    What are your thoughts on this Anton?

  2. Hey Anton in a last video when you were talking about creating a Thank you video when you make a sale what route do you suggest to take as far how to go about creating the video

  3. Take a shot of vodka everytime he says high ticket dropshipping

    Take a shot of whiskey every time he says low ticket dropshipping

  4. How to markup prices when selling a higher ticket products. Let's say a product costs 200$. Should I simply sell it for 400$ or do I need t look at the other competitors first?
    I also have another question. I live in a restricted country and I can only accept Visa and Mastercard. How many conversions I am going to loose due to not having other payment methods such as Paypal? Did you have any clients with a problem like this? Is there anything I can do or I shouldn't worry about it? thank you.

  5. Very insightful Anton! Thanks for sharing. I especially liked when you shared the pros and cons of each so we can use our own judgment to choose what we feel is best, even though high ticket dropshipping really feels like the best option. Great value bombs! πŸ”₯

  6. How could the conversion rate be 2.5% on such high ticket products? Conversion rates increase with lower priced products.

  7. Great content, i was jus wondering how could you deal with Shipping about this high ticket products. thanks in advance Anton

  8. Hello Anton!
    I literally was thinking about high ticket dropshipping then in a couple of minutes I got the notification of this video, lol.

  9. Nice video. I had a question – If I am dropshipping from Aliexpress to Amazon and let's say Amazon takes my account under review and asks for Invoices, then what is the best way to handle the scenario?

  10. High ticket is good, but may not be good for beginners. I'm still a beginner. To sell high ticket items, you need to have a much better website than just some simple Shopify site. Also, you need more money to sink into advertising. Dropshipping cheap crap from Aliexpress doesn't require as much upfront money for ads. Am I wrong? Correct me if I'm wrong. I'm open to suggestions.

  11. I just watched your webinar. Lots of talk on HOW to sell something (which I'm sure is 100% legit), but very little talk about who the domestic suppliers or wholesalers might be that will allow you to markup their products 30% and still be able to compete with other dropshippers?

  12. High-ticket dropshipping for me since I want to earn more money while doing less work.. πŸ™‚ Thanks for the video Anton!!

  13. His course at the moment is selling for upwards of $1500 and a lot of beginners can't afford. I think his course does offer value but I wish there was some monthly plan or some other way to break down payments. Paypal Credit isn't cutting it. I didn't write this comment to scold or downplay his business but instead to be transparent to those who want to know about the price without spending 2 hours watching him explain benefits only to realize that they can't afford the course. All that being said I will more than likely be buying this course when I save enough money.

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