Guide to High Ticket Dropshipping vs. Low Ticket Dropshipping

Tony

People willing to get in the dropshipping business often ask themselves whether they should select low or high-ticket items to dropship. Depending on the type of products you sell, your decision could impact how your online business develops in the future.

In fact, there are substantial differences between high ticket dropshipping and low ticket dropshipping, and, first of all, 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. From luxury watches to branded clothes, jewelry, and expensive drinks, every category has high ticket items.  It’s safe to say that items over $200 are defined as high ticket items.

In essence, not everyone can afford to buy high ticket items on a daily basis. However, on special occasions, once in a while, everyone wants to treat themselves to a high ticket item, be that a piece of jewelry or designer clothing.

What is high ticket dropshipping?

Simply put, high ticket dropshipping is dropshipping products that have higher prices. 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.

What are low ticket items?

Compared to high ticket items, low ticket items are products with relatively low prices that are accessible to the majority of people. In terms of prices, low-ticket items usually cost no more than $100 per single product. It means, they usually cost anywhere between $1-100, which is cheap, compared to high ticket items.

What is low ticket dropshipping?

Low ticket dropshipping is selling products that are rather cheap. These products can be anything from clothing, and books to home decor or beauty products. The characteristic that makes them low ticket items is their wholesale and retail price. In other words, if you are a dropshipper of low ticket items you could buy products in bulk at extremely low prices.

Differences between high ticket items to dropship and low ticket items to dropship

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.

High ticket dropshipping vs. low ticket items dropshipping

The first scenario is selling women’s bags for $30 manufactured and imported locations that offer low manufacturing costs. This handbag costs $30, you may sell it for $49.99. This way, you’ll earn yourself $15.

The second scenario is selling the original Michael Kors handbags for $1200 per piece. As you can see, the price at which the supplier values the high-end handbag is set at $1200. You can sell it for as little as $1800 and make $600 in profits.

To conclude, to make one sale of a Michael Kors bag, you’ve already gained much in profits. With low ticket items such as a bag from $30, on the other hand, you’ll need to sell 40 bags to achieve the same $600 goal, which is much harder to accomplish. Why? Because selling 40 bags is more complicated than selling 1 bag. You’ll have to invest time, money, and energy to find 40 leads and convert them to buy that bag. Even at a 10:1 ratio, the ten sales you make from the low ticket item still wouldn’t make that much compared to a single sale from the high ticket item. In comparison, for selling one Michael Kors bag you’ll have to find one quality lead to convert and become a buyer. Sounds much easier, right?

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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.

Why choose high ticket dropshipping over low ticket dropshipping?

There are multiple reasons why you should consider dropshipping high ticket items instead of low ticket items.

  • Having fewer orders of high ticket items is better for your online business. First, because they are highly profitable and, second, you don’t have to spend much time processing them.
  • When it comes to paid advertisements, you will only target certain audiences within certain developed countries, with larger financial power.
  • High ticket dropshipping takes the same amount of time as dropshipping low ticket items. But, at the end of the day, it’s more profitable to spend time converting a lead to buy $800 Armani shoes than $50 non-branded shoes.

Aside from the above-mentioned benefits, there is the most important one: the psychology of buying high ticket items.

The psychology of buying luxury goods

It’s undeniable that people will always manage to invest in buying things online, regardless if they are cheap or expensive. Most countries in Europe, Australia, and North America have significantly wealthy populations that enjoy online shopping.

This is especially true when it comes to clothing. As demonstrated in different statistical data, the fashion industry remains one of the most popular categories for online shopping. This confirms the fact why many luxury brands, including Dolce & Gabbana, Versace, and Armani make billions of dollars in profits each year. The reason for this is that everyone wants to buy high-end fashion products.

The psychology of buying and the desire to pay plays a big role in shopping. Sometimes, since people decide to spend money online on buying products, they often do it impulsively. Without any thinking, we all buy things we need (or don’t need that much) but get them nevertheless. If we make a comparison between cheap and 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.

Which are the best high ticket 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, you’ll know the ideal choice. To put it differently, the leading online shopping category is fashion. Add to this, high ticket items and you get high ticket fashion items.

Clothing and accessories from luxury brands and designers could be the most lucrative choice for you. If you are into selling fashion pieces and targeting an audience that finds pleasure in buying luxury products, you got yourself a winning opportunity.

To start on the right foot, you need to identify the right dropshipping supplier for you. Some of the things you should consider when comparing different suppliers’ offerings are:

  • A wide selection of products from various luxury brands
  • Automated order placement
  • Dedicated Account Manager
  • Integration with eCommerce platforms (Shopify, WooCommerce)
  • Fast worldwide delivery
  • No minimum order
  • High margins

Lastly, your decision should be based on your needs and requirements. You need to have a plan and strategy put into place to be successful in dropshipping high ticket items. What’s more, you need to define your buyer persona, its strengths, and weaknesses and move up from there. Otherwise, you wouldn’t know who you’ll be selling your luxury products to.

About the Author


Tony

2 responses to “Guide to High Ticket Dropshipping vs. Low Ticket Dropshipping

  1. Hi tony. thank for the words you shared with us. I have a question , can u please provide more details about other high ticket items.
    In addition to that can you tell me about the most demanding high ticket niches to do dropshipping ??
    Regards.

    1. Hello Oliver,

      As mentioned in the article, one of the most demanding niches is luxury clothing and accessories. BrandsGateway specializes in that sector, so you can register here to see our portfolio of products.

      Regards,

      Kristina

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