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

Discover the truth about dropshipping high-ticket items as a beginner.
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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.