9 Secrets To Building A Profitable High-Ticket Dropshipping Business
9 Secrets To Building A Profitable High-Ticket Dropshipping Business
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All right guys. So welcome to this presentation, Nine Secrets to Building a Profitable High-Ticket Drop Shipping Business. High-ticket drop shipping is a really cool business model and it works really well if you do it right. And these are going to be my secrets to doing it right. So let's get into it.
Number one is your mindset. You need to get your mindset right for this type of business model. You need to be prepared for it, because there's a lot to do with retail, and especially doing it online only. And then utilizing suppliers instead of doing your own product, it takes a bit of going back and forth, and being a middleman per se really requires the right mindset and the right type of personality. You need to consider being the leader in your business, so always be driving your business forward. Just have that mindset of, no matter what, you're going to be figuring out new ways to continue forward because with entrepreneurship and business in general, you're always going to be taking two steps forward and one step back. It's just normally how it goes in business and in life. It's just kind of the way it is.
And I wanted to let you guys know that over the last 10 years of doing this kind of stuff online, that I've realized that no matter what, even if things are looking down and bleak, if you continue to push your business forward on a daily basis, then you're going to get somewhere. But if you start freaking out and having trouble with certain things, then you're probably wanting to quit because you're going to be tired. So you just have to be a leader. And there are lots of books on leadership and lots of content about leadership, so read that kind of stuff, and get out there, and really practice it.
Number two, you really have to have the right mindset of being your supplier and your customer's best friend. Because this is a business that's based on an owner, right? It's a single-person business, it's a small business. People love small businesses because they have that kind of connection with the owner of the business. When you go to amazon.com to buy something, you're never going to be able to talk to Jeff Bezos about it. But when you go to a small niche website, and you call the phone number, chances are you actually will get the owner of that website on the phone. And as a consumer, that's pretty awesome because you're talking to somebody who is going to be really passionate about the products that they sell and is going to know the most about them, and you're talking to an expert. And that's what people want. They want to connect with an expert in the space, especially in hobby niches, niches that are based on complicated products, you need to be the expert. And if you're not the expert yet, then you need to become an expert on that product. It doesn't really take that much effort to become an expert, it just takes some research and training. So in order to become an expert in any subject, you've got to read books on it. You've got to actually go and touch and feel the products in person, and you've got to get an understanding of how they work. And you're going to be able to help your customers and your suppliers a lot more that way.
Your suppliers, they want to sell these products. So they want to sell more of them. You have internet marketing experience or you're going to get internet marketing experience, so you're going to be able to help them sell more online. And your customers are looking to buy the best products. So simply put, you need to be the expert at marketing and in the industry, you're in. And when you find the right industry for you, and you're the expert in marketing, suppliers are going to want to work with you and customers are going to want to buy from you. So it's a great thing. So have that mindset, you need to be their best friend.
Every single call you get on with a supplier or a customer, you need to focus on building rapport with them, which means finding common things that you have as interest together and building a relationship. Just being friends with those people, because the more friendly you are with your suppliers, the more deals you're going to get from them. The more promotions and opportunities and lower pricing, and stuff like that, and better treatment. The more you're friends with your customers, the more customers you're going to be able to keep in the long run. They'll keep telling their friends about it, they'll keep coming back to you over and over again to buy. So, that's really important.
Number three, do your work on your website and with the marketing when you're in your peak mindset. When your mind is at its peak during the day, jump into work and get it done. And then when you find yourself waiting, like your attention it's hard to get work done anymore, stop working and take a break. So we're all different and everybody kind of works in different ways.
Me specifically, I work really well in maybe two or three-hour chunks at a time. I can't really work past two or three hours because my attention starts wandering and I really want to take a break, that's really it. And if you try to push it too hard, and you try to keep working and not taking a break, you end up just getting bad work done. So your best work is going to be done in a peak state. And what I've found that works really well is working in 25-minute chunks with 5 or 10-minute breaks in between and 2 or 3 hours at a time with a nice hour-long break in between that. Usually, it's for a meal or something like that, or to go do something, and recreate, and exercise.
Okay? Don't forget about that, everything goes along with that. Exercise every single day for at least 30 minutes. Cardiovascular exercise is great for you, like running, jogging, bicycle, riding CalAesthetics, whatever it happens to be. And you need to eat well and drink lots of water because this is going to help you do really good work. Okay? So keep that in mind.
Number four, you have to know yourself and take care of yourself. If you start feeling like you're getting overworked or you're overworking yourself, it's really difficult to do good business, to take care of people right. If you find yourself with a bad attitude, or you're in a bad mood one particular day, you need to go and take care of yourself first before you deal with your customers. Because if you deal with your customers and you're in a bad mood, that's going to come out on your entire brand image, and your brand quality, and your ability to keep and maintain a customer base that likes and loves you. So don't do that. Take a break when you need to, take care of yourself, avoid getting sick, and you'll be able to work a lot better and provide a lot better service to your customers.
All right, the next thing, number five in mindset is, business and entrepreneurship is a marathon, guys. It's not a race. So don't feel like you need to be in a race with somebody else. If anything, you're in a race with yourself to improve upon yourself yesterday. So stop feeling like you're in a race with your competitors. You're never going to win that race. But being in a marathon means you're always going to be taking care of your customers, communicating with your suppliers, and taking care of yourself. And money will flow in when you create really good content.
I've seen some of the biggest best businesses come out really, really slowly. And what they do is they focus on really good quality content, building really good websites that serve their customers really well, and then they serve the customers excellently throughout the buying process. Those websites always make way more sales than the ones where somebody throws up a website, copies a bunch of product info, copy stuff from their competitors, and just starts throwing ads at it. Those websites do not perform, and it's a lot of money wasted in the ads, a lot of time wasted in throwing up the website, and the owner ends up giving up. So you have to be in it for the long run, you have to be in it to build. And in order to do that, you guys have to have your foundations taken care of first. You can't jump into business or try to grow business without the proper foundation of finances to back yourself up.
And I'm going to talk about more about business finance later on. It's actually number eight in my nine secrets here, financial literacy. But right now, I'm just going to go over exactly the kinds of things you need to be prepared for. So in other words, have a job before you start your high-ticket drop shipping business. Have some sort of steady income first. If you don't have a steady income, it's really difficult to go slow with this type of business and build it out really well. So have a steady income first, then build your business. And then quit your job as soon as your business is making enough money to afford your monthly expenses, okay, on a maybe a full 6 or 12-month period, every single month it's making more than your monthly expenses. Great! Now you can quit your job, go full-time in your business, and you can be pretty sure that you're going to keep running the business at that same level or grow it. It's not going to go down from there.
You need to be really well-organized. Organization is the key. Organization really should be a whole separate one here, but I just thought of it now. Organization is really important and you need to use tools to stay organized online, like to-do-lists, and note apps, and spreadsheets, and things like that. But the more you're organized with your business information, the more you're going to be able to take care of everything and follow up, and run a good business. So organization is the key. So focus on productivity and organization, and learning it, and just being a student of it every single day, you'll get really far.
The last one is goal setting and planning, and action-taking. It's really important in the very beginning and throughout your business to set really good goals for your business, things that are clear, things that are achievable, and to write those down somewhere that you can always look at them later on. And set goals for this month, for the quarter, for the year, 5 years, and 10 years, all right?
And these don't necessarily have to be anything that you think are actually going to do, but they definitely need to be there. So set those goals. Just make them wildly crazy goals, make them within reason, don't just put like, "I want to make $10 billion in a month," because that's probably not going to happen, but make them reasonable. But make them a little bit beyond what you expect and I think you'll get them. If you put goals out there, magic happens, your mind goes to work, asking the question, how can I do it? And you start asking for help from your peers, and everybody else, your partners, and stuff like that, and you actually might attain that goal.
Okay. Next thing is to make a plan to achieve those goals. So a plan is basically just like a step-by-step checklist on how you might get from point A to point B. It's really simple. Sometimes if the goal is really big though, the plan is going to be very long and very complicated, so what you need to do after you make your initial plan is to make micro-steps. In other words, a plan to achieve each step in that plan, because one step might be really complicated, like optimizing your ad account. That's really complicated. There's a lot of steps. So you've got to break that down step by step, by step, and talk to yourself about that every single day, and come up with ways to actually do it.
And once you have your list of micro-steps, you have to ignore everything else that's going on around you for the time that you're working during those 25-minute chunks, and those two or three-hour chunks, if that's what you do and actually take action to achieve those goals. And do not be afraid of what other people are going to think of you, just do it. It's really important that you get rid of everything else that's going on in your life, that's going to make you feel afraid of what you're doing. Don't listen to your peers, all these other stuff that's going on. Only listen to positives in your life and just get the work done and provide value. That's what you should focus on.
All right! So the mindset is a big deal game. Without mindset and all that stuff I just talked about, it's really important, you're not going to get anywhere. So have that stuff foundationally in your life first and then we can move on to the actual high-ticket drop shipping steps. Okay? So let's get into it.
Number two, my second secret to building a profitable high-ticket drop shipping business is niche selection, okay, profitable niche selection, niche selection is done right. Okay. There's a lot of people that try various niches and their business fails and they're wondering why. And so I'm here to explain some failures that people have done, that I've done too, and why you shouldn't do them, and then also what you should do.
Failure number one is going too broad. Okay. I see this a lot, I've done it in the past myself. You try to make a website selling to many different categories of products, and you never really go deep on any one category, and you just, sort of, lose your focus, and you do too many things at once, and you never really get a whole lot done, so every single day you're not really seeing the results that you want to see in your business, and you end up, after a while, just kind of giving up on it and going with something else.
It's because you're too broad. You have to focus on one category in the beginning. If you look at the story of amazon.com, they didn't go and sell everything at once, they went and sold just books. They really focused on the book category for a long time. They got that nailed down. And then they moved over to music, and then they moved over to videos, and games, and things like that. And then they moved over to toys. And they really figured out one vertical before they got into the next one really good. And that is all laid out in the book called The Everything Store. You should read that if you haven't read that yet. But your business should be on a similar thing, success leaves clues, some model after the success of the biggest eCommerce Paradise out there.
Wayfair was a similar story. When they built Wayfair, they were actually building a bunch of niche stores. The first one was called racksandstands.com. You can actually listen to their podcast with Guy Raz on the How I Built This show on the podcast. Type in Google, how I built this Wayfair, and you'll find the episode, and you can listen to it. Those guys, it's two guys and an amazing story. They built over 200 niche stores selling high-ticket products. And they eventually brought in some investors, and consolidated to one store, and rebranding into a website called Wayfair. Wayfair is absolutely enormous now.
All right. So niche selection is done right for a small business, for a single solo entrepreneur, you have to focus on one product category, and you have to choose something that you can be the expert selling. And it doesn't matter if you already are the expert or not because you can become the expert, but you have to be willing to become the expert on that niche category, because, again, you have to be your suppliers and customers best friend. And it's really hard to do when you don't really have the passion and expert knowledge behind the niche. You're going to have to become an expert at that.
You can utilize past skill sets in your life. Let's say you already have some B2B sales experience, well, choosing any B2B niche then it's going to be easier for you because you already understand the process of selling B2B. So you just now need to learn the category, and the target market and research that, and you'll learn it.
But number one, the most important thing here is choosing a single category to start and not going broad until you've really optimized every single bestseller in that category you can possibly get your hands on. So that's the biggest mistake I usually see people do and I want you to avoid that mistake.
As far as things to do, focus first on obviously understanding what a high-ticket price point is. A price point for high-ticket drop shipping is anything, usually 200 or 300 bucks or up. And of course, you'll get more profit per sale if you sell anything $1,000, $2000, $3,000 and up. But on the extreme side, you're probably not going to sell too often, or at least sell it just online-only things that are over 5 or $10,000. Okay. Because people need to speak to someone on the phone.
Oftentimes they'll need to use financing for that sort of purchase, or they'll need to do something else. And you need to be protected as well because if you accept a credit card purchase, you have liability. People can file a chargeback for 120 days. 120 days is a long time, that's four months after they purchased from your website. So being that someone can purchase something and then four months later file a chargeback on it, that's pretty crazy and scary, right? And a lot of credit companies are tough on chargebacks.
But as a company, you can protect yourself. And the main thing is, if you're selling 5 or $10,000 and upon the products, I would set up a system where you have to accept some sort of ACH transfer or cash transfer on that. But if you're selling something under that, you're probably pretty good. And as long as you have a straightforward return policy, straightforward terms and conditions on your website, you should be fine. Anything under $5,000 usually sells online without you having to talk to someone on the phone, but sometimes you still have to talk on the phone, which is fine. It's just part of this business model.
The next thing is, you really need to focus on finding competitors that already are selling the products you're thinking about selling online. Because if you can't find anybody that's already doing it, it's probably a bad sign. It's probably a sign that this niche isn't exactly profitable. And that sucks, right? Because if there's nobody selling it, there's probably a reason why. Maybe there are not enough suppliers, maybe the suppliers that are out there mostly sell direct, maybe they have low-profit margins there. There are lots of different reasons why somebody will have decided not to sell a product category online. And if you can't find current competitors that are doing exactly what you're doing, in other words, you want to find somebody who is drop shipping only, and they don't have a physical retail store phone call in their website, and their website looks new. It's like a Shopify store. It's a new theme, maybe a Shopify theme, or something like that. You want to find these competitors before you decide to jump into a niche because you're going to model after them, you're going to model their success, and it's really key.
So even if you find a niche that doesn't have any competition, you're like, "Yeah, that's awesome. Nobody's competing," that's not necessarily a good thing. There's probably a reason behind that. You needed to do more research.
All right. Number three, the third thing here in this section you need to make sure is that you find suppliers for your niche that have minimum advertising price policies. And you can tell this without having to get on board with the supplier at first. You can just look at the product listings that you're going to be researching across multiple channels, mostly Google Shopping, and you want to see the same price point for that product being advertised by multiple dealers. And that's just the key of it. If you find that a product is being sold at 200 or 300 up. 200 or 300 down, blah blah, there's no MAP pricing then, and that supplier's probably not going to work out for you very well. Because people can undercut you just on price and they'll win the sales and you won't be profitable because they might even be getting a better price.
I found this a lot with the furniture niche. A lot of furniture suppliers don't have MAP pricing because they sell in retail stores, they sell online, whatever, and they're really easy to get on board, but that's why because they're not the best suppliers to get. So be weary in the furniture niche.
All right. The next thing is, you need to make sure your niche has a solid keyword search volume. And this has something to do with demand. If the keyword you're searching for the product category, let's just say alkaline water ionizers, I know that's one that I've seen before. It's a really interesting product, alkaline water is quite trendy. But an alkaline water ionizer is a high-ticket product that serves that niche of people that want that alkaline and water. Their search volume isn't really that high, it's I think 10 or 20,000 per month in the US, and that's probably just because it's not a huge niche. So you might be able to put up a store but it's not going to get a ton of sales. So it's probably not the best niche to put up a store.
You're really looking for niches that are 50,000 all the way up to maybe 75, 000 or 80,000 monthly search volume. If you start going over that, be wary because there's probably a lot of competitors, and a lot of people that are selling online, and with that means there's more competition, it's going to be harder to sell it. So you got to be better at marketing, better at conversion rate optimization, which I'm going to get into later. But make sure that there's a solid amount of keyword search volume but not too much, so kind of the perfect medium is somewhere between 30,000 and 80,000 in search volume per month.
And make sure that the trends over the past year to 10 years are pretty even. A niche that's going up, that's great, a niche that's going down is not so good, but even as perfect. And the cool thing about high-ticket drop shipping, of course, is that it's evergreen. Evergreen niches are awesome because you can sell them year after year, after year, you don't have to be searching for new trendy products. Yes, some products are discontinued or would go out of stock, and blah, blah, blah, but generally speaking, you're selling the same models year after year and by the same suppliers. So you can build those relationships and get more sales.
So profitable niche selection is pretty simple, but you have to follow some criteria. And in order to really do it right, you've got to make the decision based upon, number one, a profitable niche, which is following the criteria. Number two, a prior skillset that you already have or something you're willing to learn about. And three, a passion that you already have or willing to create for your business. That's the key here.
If you can find the trifecta of a niche that fits you, perfect. One example is that, when I first started with high-ticket drop shipping, I tried skateboards, but the skateboarding niche isn't profitable. It just isn't an industry that works for high-ticket drop shipping, oh, and of course, the products themselves are only like maybe a hundred to 200 at the most, right? Electric skateboards might work, but still, it's too new of industry, the products are quite complicated, so there's a lot that can go wrong there. So I wouldn't recommend it. But one that worked for me, even though it's a little bit tough to manage because the products are complicated, was bicycles.
Bicycles are $200, $300 all the way up to $500,000, $2,000, $3,000 for electric bikes, that kind of stuff. And there are lots of suppliers that aren't part of the big five bicycle brands like Giant, and Trek, and Fuji, and those brands. And there are lots of these, kind of, generic brands out there, bicycles that someone shops, but also some that don't, that ship direct to the customer. And any of those brands that ship directly to the customer also usually set up drop shipping accounts, give you like 20% profit margin on average. And after marketing costs, you might make 10% net profit, and boom, you've got a pretty profitable business. If you're making 50,000 sales is 5,000 to 8,000 a month. That's usually what I was doing in 2016, 2017.
And before that, when I was just selling bicycles through a different website, I was doing a lot, and this was before Google Shopping, I was doing 5, $10,000 a month in profit and that's usually what people are trying to make out there with this kind of stuff. And I have students that are doing a lot more than that, and they're blowing my mind. But this stuff works really well. It's amazing.
So the next step and my third secret to profitable high-ticket drop shipping is a supplier sourcing. I talked about researching suppliers, but now I'm going to talk about actually getting them. Again, their MAP pricing is key, so make sure they have MAP pricing right up front. And make sure that on your competitor's site that there are best selling products on that site that are by those suppliers.
And then when you get out to get them, it's really easy to get suppliers, but you have to make sure you're calling them on the phone. And when you call them, just ask for whoever works with the purchasing department, or dealer applications, things like that. And you talk to them, just a quick thing, you say, "Hey, I'm with, whatever.com, and I'm looking to establish a dealer account with you guys, become an authorized dealer selling your products online. We're looking for dropshipping. Would you be able to help me?" And they'll say, "Yes, let me get you over to the right person. Or, yeah, I can actually set you up an account, tell me a little bit more about your business." And then you can explain to them, "Yes, we do drop shipping only. We've been around for this long. We focus on customer service and support first. And we're really good at marketing online, and getting sales, and driving targeted traffic through our website. We do all the work for you, and upfront, we'll set up all the product listings without you having to spend a single dime with us to set up anything. We're basically an online retailer, we're not a marketplace. So we're not going to charge you for advertising, we do the advertising, we pay for all the marketing costs and stuff like that. And all we expect from you is somewhere around 20 to 30% or more depending on whether you charge shipping or not profit margin. And with that, we make enough profits, and we provide service and sales all across so that you don't have to do that, and you can outsource to us."
And they'll be like, "Wow, that's amazing. That's so cool. Yes, we'd like to send you a dealer agreement, get you set up right now, an authorized dealer with drop shipping terms." Or they'll say, "No, I'm sorry, we can't accept any more dealers right now, we have too many dealers, or we're doing direct, and we just don't do that anymore, whatever." And if it's yes, great. If it's a no, just ask then, "Great. No problem. Do you mind if I follow up in three to six months to see where you're at, maybe you're accepting new dealers?" And they'll say, "Yes, that's fine," or "No, that's okay, don't bother." And don't push it too much, whichever way it goes, just say, "That's fine, great, I'll follow up," or "Okay. No problem. Have a great day," okay? That's how you get suppliers.
And of course, following up by email quickly is really important. And as soon as you get that dealer agreement, have it filled out or fill it out yourself, and send it back to them as soon as possible with your seller's permit. And that's it. That's the secret. So it's really simple. And a lot of people, kind of, overlook it and are scared of getting suppliers. Suppliers are actually really easy to get. They're really cool.
All right, number four, and this is one of the most important parts of this entire process. Number five is actually, in my opinion, the most important part. But number four is a foundation for the most important part. Number four is conversion optimization. So you have to optimize your website for conversions. And this is really important because if you don't optimize your website for conversions, you can send as much traffic to it as you want, and it's not going to convert, that's just the way it goes. It's crazy, but it's true.
I got my green drink with me today, say kale and ... What else they have in here? Lemon, pear, apple. It's in Indonesian, you can't really read it. But delicious stuff, guys. I recommend keeping yourself healthy throughout the day. Green juice is a great thing for you, it gives you lots of energy.
All right. So with that said, let's get into conversion optimization. There are eight steps here I got laid out for you. So number one, build trust on your website. And you build trust just simply by putting trust badges up and talking about how good of a company you are, and your unique selling proposition, and stuff like that. Have a really good laid out about page. And on every product page have tabs and stuff like that. And trust is kind of the overall feeling of your website. Is it trustworthy? Is it secure? Is your company secure? Are you going to deliver the products on time that you promise? So talk about that in your content.
Number two, it kind of goes along with trust, but social proof. Social proof is a really key factor in closing sales, and usually, it's done through product reviews and site reviews. Social proof is pretty awesome because you can get reviews, and then people will see those reviews, and they'll trust the reviews 10 times more than anything else you put on your website about you. They'll trust those reviews way more. So think about that and get going with social proof as soon as possible by adding reviews and getting reviews.
Number three, urgency and scarcity closes sales. Urgency is important. Urgency means, "Hey, you got to buy now, sales ending." Scarcity means, "Hey, there's only a few left in stock." And when you combine the two, "there's only a few left in stock and the sale end ends tonight," people are way more likely to buy it right now. Amazon does, works great. Every website should do it, it works awesome. So countdown timers, automated daily sales, flash sales, things like that. And marketing about it in multiple places, not just your product page, but your homepage, your blog content, your emails, your social media, all that stuff.
Number four, risk reversal. Okay. People want to see a really nice easygoing refund policy and return policy on your website. And don't hide it, put it really clearly on your product page. Because if somebody sees that, and they see how easy going your refund policy is, even though you have to protect yourself, make it easy, okay, make it sound nice, and they're going to want to do business with you more than your competitor.
The other thing you can do is have a price guarantee, a low price guarantee. Low price guarantees are great because people are always searching for the best price online. And you can even put a little thing on your website that says, "We'll match any price," or something like that, "Give us a call to lock in the best price online," or whatever, and put your phone number right there.
And this kind of leads into number four, which is contact points, which means have your phone number, have your email, have your mailing address, everything that a way that a customer can contact you, have that really clear on your website. The top, the bottom, your product page, obviously your contact page, your about page. Most pages on your website should have those three things, phone number, email, mailing address. You can use a Virtual Office, you can use something like Grasshopper for your phone service, a voiceover IP phone service. And you can use something like G Suite for a professional business email, and you can even have a Live Chat on your website, whatever it is, have contact points available for your customers. It's really key. People love being able to contact your business. And when they contact you obviously write back, or respond, or answer the phone, and be a friendly person.
All right. Number six, arguably one of the most important parts here, is really high converting sales copy, easier said than done. But sales copy is simply the content on your website that gets people excited about the products and makes them want to buy them right then and there. And not just the products, but you and your business, and why you do business. Apple has, kind of, shown that showing and talking about why you're doing business is actually one of the best ways to sell to people because the why behind the business ... For me, I was selling bicycles because I love riding bicycles, I want to get more people on bicycles, I want to help the world be greener, I want to make the world a better place, I want to share the joy with people. That was my why behind my business, and I share that everywhere across my marketing. And people really dug that and they chose me over the competitors. Okay, so your why is what it's all about, and that's going to be in your sales copy.
But also your sales copy should focus on the products obviously, on the product page. And they should talk about the features of the product, and the benefits of those features to the customer's lifestyle, or however it will affect them, maybe it's their business or whatever the market is. So, feature, this electric bicycle has a 350-watt motor, and that's kind of the key that ties the feature to the benefits. So you can easily pull the throttle, and go up the hill really fast, and ride with ease, and let the wind breeze past your face, and people turn their heads looking at you, how cool you are, okay, because that's really the experience they're going to have.
And when you talk about that on your website, you get them into that state of mind, that peak state of mind of that buying experience, the experience of feeling the product. It's like when you're at a retail store, they're able to actually get that person on a bicycle. So the only thing you can do in your online website is to give them the imagination of riding that bicycle. So you have to put the product in the consumer's hand in their imagination by writing a really good sales copy. And that's the key to it. Pretty simple.
But number one, what you say matters. And number two, using really good pictures and videos on your product description between your sales copy points will really help you convert better. Okay, so multimedia, obviously the pictures could be crunched down so that it doesn't take too long to load in the picture. Just use one video, don't use two. But videos are great, and you should definitely have multimedia on your website, especially if it's from you. If you have to start out and use your competitors' multimedia, that's a tough thing because you're always going to be promoting their content through your website, so create your own. And we'll get into that later. Secret number nine is video marketing, so I have a lot to talk about there.
All right, let's move on though. Number seven, on conversion optimization, is creating content to push people through the sales funnel. When you're talking about eCommerce sales funnel, we're talking about the top of the funnel, middle of the funnel, the bottom of the funnel. Top of the funnel is when they're interested in the product category. Let's just use electric bikes as an example. So they type in the best electric bike into Google, they want to find some articles. You can make an article called the best electric bikes, and maybe even electric bikes for the city, or best electric bikes for off-road, or this type of electric bike for seniors, that kind of stuff. You can make these types of blog articles for websites because there are people that are at the top of the funnel that is searching for a guide to guide them through the rest of the funnel to a product that is going to best suit their needs, okay, because they knew who they are, so it's the best product for them, okay, whoever they are.
So you can find these keywords by using Google Keyword Planner. Just type into Google best electric bike for ... and then it'll give you a bunch of answers to that, right? It'll have a dropdown menu with answers, and it'll tell you exactly what people are already searching for, which is really cool. And then you can look at the search find through Google Keyword Planner for free.
All right. So creating the content though is easier said than done, you have to actually create content, obviously, make a blog article, just like you're writing a book, make an outline ... Well, it's like you're writing a report for school. Just think back to school, like an essay you made, you have to make the outline first, the skeleton, main points, sub-points, that kind of stuff. But you want to guide somebody from understanding the product category, understanding the product, what it is, and how it works. Who you are as a business, and how you will help them find the best thing for them. Okay. And number two, what your brands are that you sell and offer. And number three, the best selling products within those brands, okay, because that's basically the guide. You're going to guide people to understand the product category, understand subcategories, understand the brands that offer these subcategories that you sell, and then understand those best selling products. So, that's kind of guide.
Now, when you create this guide, you want to have content, video, imagery, throughout the guide. It's going to be something you're going to keep them on the page for a long time, lots of multimedia. And as you go through there, but lots of links within the text to different collection pages, and product pages, and other blog articles on your website just, kind of, as Wikipedia does. Because when you put people to other parts of your website, then they're more likely to stay on your website, browse longer. Google is going to see that and make your rankings way higher. And for you, it's great because now somebody really likes your brand, you're delivering a lot of value to them throughout the buying process. They're way more likely to buy now because they're probably going to sign up for email address, or you can retarget on Facebook or something like that, or they're going to like you on Facebook. You can follow up with them somehow, and when they're ready to buy, they'll buy from you, especially if you take care of number five on the list, which is targeted ads, which I'm going to get to almost next after number eight which under conversion optimization is email marketing, specifically automation and followup sequences.
Okay. So, before you launch a website you should definitely set up your email marketing. And throughout the running of your website, you should improve your email marketing. This is always going to help build your business because followup is key with eCommerce. 99% of people that come to your website they're not going to buy anything. An average eCommerce conversion rate is 1%, sometimes it's as low as 0.5 or 0.3 or 0.2. It really depends on your product and your sales funnel, and of course your target market.
So when you have really good email followup sequences it's going to work great. And you should have three of them. The first email followup sequence should be a welcome series. When someone goes to your website, they should see a popup that comes up right away, offering them some sort of a free guide and a discount coupon, or just a discount coupon, or just a free guide, but a free guide plus a coupon it's pretty cool.
And you should introduce yourself to them, tell them a story about how you got started with your business, give them the discount coupon, give them the free guide, and then start closing them in email form, just like you're talking to them in person, but send them emails, automated emails. It gets them to take that coupon code and add something to their cart and purchase it.
The next email you should have is an abandoned cart sequence. Okay. So an abandoned cart sequence is really simple using Shopify. What they're going to do is, if somebody enters the checkout sequence, enters their name, address, email, and phone number and hits the next button, they've automatically been entered into your system as a customer, and they're going to be on your abandoned cart sequence until they make a purchase. So that abandoned cart sequence will fire, and all you need to do is basically push them over the fence. So if someone on their mobile device or they were on the computer and something happens, they get distracted, and you send them an email four hours later because now that distraction is over, and you know they're in a better place to buy, it's likely that they'll make that purchase if they really were interested.
If they weren't really interested, they were shopping around and putting in ideas, and they kind of were on the fence, they might not even buy at that point, so you just got to keep following up. Facebook retargeting ads work great there, Google remarketing ads, things like that. I'll get into those a little bit later. But email marketing works great to direct a touch point with your customers. And after somebody is done with your abandoned cart sequence, and a welcome series, and hasn't bought yet, you should follow up with daily or weekly email broadcasts, giving them free content, valuable content, and trying to get them to come back to your store to buy more.
A third sequence you should have in your email marketing campaign is a really simple but really important followup sequence for new customers, should be, thank you for your order, just a little bit about who we are, how we're going to help you, and how your product ships out, how it's going to be delivered, what you need to be ready for before you get your product for assembly and installation purposes, that kind of stuff, and how to contact us in case anything goes wrong, or you have any questions along the way. That's really important.
And also, after that, you can follow up and say, "Hey, do you want to buy this, this or this?" Maybe an accessory, maybe white-glove delivery, maybe some sort of extended warranty service, any kind of upselling that you can do, which actually is number seven in my secrets here, is upselling. But any kind of the upselling that you can do should be in that sequence as well as other places, which we'll get into later here in the talk.
Okay. All right. Number five for my secrets to profitable drop shipping is targeted advertising. It's really important and really, really crucial for high-ticket drop shipping to do targeted advertising because these are expensive products. And the internet marketing world is going more towards advertising now. It used to be that you could rank things organically, and you still can for things like content websites. But for high ticket drop shipping specifically, you are selling something directly, you need to run paid advertising as well as [inaudible 00:35:41] at the same time, and you need to start with paid ads.
But the best way to start is to target the bottom of the funnel, cold traffic leads to your website. the way you can do that is with Google Shopping ads. It's really important, really easy to do, and it gets traffic to your website. But it's really important that you understand how shopping ads work before you get into them, and how you can target the bottom of the funnel traffic. But it's quite complicated if you've never done it before, and you have to learn it, you have to spend a lot of time learning it.
Now, just explain it to you here is not really going to help. What really helps is actually you seeing over my shoulder as I do it. But if I were to show you over my shoulder on a YouTube video, it would just kind of like be giving away my secret sauce here. So I don't do that. I can explain it to you here on YouTube. But in order for you to see over my shoulder exactly how we set up an ad account like that, you need to sign up from a masterclass, and that's where I put the information in there. Over my shoulders on how to set up an ad account. Okay. And you can get more information if you're interested in ecommerceparadise.com/masterclasses, for high-ticket drop shipping specifically.
But as soon as you set up your ad account with Google Shopping ads with the funnel that I show you how to set up, and drive the targeted bottom of the funnel traffic, people that are interested in buying right now to your website, then they'll buy. And when they buy, when people buy a product that tells you that it is the right product for the market. Okay. So it is a product-market fit, which is key because then you can take that knowledge and run with it, you can make more ad types for that same product. Okay. You can make search text ads, you can make Google remarketing ads, you can run Facebook ads, specifically for that best selling product, and you can improve the product page. On top of that, which I'll get into a little bit later here, is upselling, create more upsells for that product.
But number three is retargeting ads. Okay. When somebody comes to your website, it's likely they'll sign up for an email but it's not guaranteed. They might not sign up for the email. And when they look at your product page, they might be interested and be in the market, but they want to search around a little bit more and try to see if they can find a better deal elsewhere. But if you run a retargeting ad on other websites like Facebook and through the Google AdSense program, the Google ads, then you're likely to bring that person back in as they're doing other things throughout the day. You're basically being a salesman here, and just reminding them throughout their journey on their web that you have that product for sale, and it's at this price point, and all the conversion optimization stuff is in place. Hey, a lot of people say great things about us, we only have a few left in stock. The sale ends tonight, that kind of stuff. And we have a great return policy, low price guarantee, you can lock in the best price online by calling us now, here's the phone number, email address, mailing address in case you have any questions, and here's some content help you understand the product.
So that's where conversion optimization and advertising kind of go hand-in-hand as you can see. Without conversion optimization, all that stuff I talked about, the ads won't work. Without ads, conversion optimization isn't going to have a way to close sales because you're not going to get traffic to your website. So you need to have both. But retargeting ads are great.
All right. Let's go on to number six. Once you start getting sales, it's really important that you understand the key factor behind the business and running your business. And it's kind of a mindset thing, but it's also something you should train on all the time and practice, it is really good sales and really good customer service.
When you take phone calls, you need to get used to how to close a sale. You need to understand where a customer is at in their buying experience by asking them few questions and understand them more, and then you need to ask them open ended questions to learn more about them, then ask them yes, no questions, okay, particularly geared at getting to yes. Because if you know this person now, and you have an idea of what they want, just ask them the question that's going to get a yes, and ask them multiple questions, and then close on them. Say, "Okay, great. We can go ahead and get this shipped out today or tomorrow. All we need is your credit card information. What type of card is it? A Visa or MasterCard?"
Those kinds of closes work great because if they've decided already in their head that they want it, they just don't know if they trust you enough. You showing professionalism in your sales closing techniques is going to make them trust you more. It's crazy how that works, but it works. So learn closing techniques. You can learn sales, a number of different ways. I read tons of books on sales. And you just got to practice it, honestly, you just got to practice closing people. But that's really important.
Number two is to take care of those customers. When someone buys from you and you close them, you get them all excited. Don't just ditch them and leave them out in the drive. Follow up with them every single day, or every single week until the product is delivered, and then follow up with them every single week after that to make sure they're happy with the product, and build rapport with them, make friends with them, and get to know them on a personal level even. You never know where a customer relationship will go. They might know other people, businesses that can use your product. And if they make an introduction, a referral introduction is 10 times more powerful than a cold lead introduction. You advertising to somebody that's tough, but a referral introduction is really easy because somebody already trusts that person, and they trust you, so now they're going to trust you. It's like a triangle of trust here. And making friends with customers can lead to that kind of stuff, so focus on that.
And number three is, ask for reviews from everybody that buys from you. Over the phone, email, whatever. "Hey, would you mind leaving your review? All you have to do is go here and type in a short thing about how you felt about our company." On Facebook you can use shop approved. You can just have them leave a review on the product page, or just write you an email testimonial that you can feature on your website, that kind of stuff. Or best, have them make a short 30-second video talking about their experience with you, and give it to you so you can upload to YouTube, or have them uploaded to their own YouTube channel. Those things work great. But ask for reviews.
All right, guys. We're doing great. I hope you're still with me and doing great today. I'm talking about The Nine Secrets to Profitable High-Ticket Drop Shipping. I'm just about to get to number seven here. But first, I'm going to take a swig of this green drink that I'm drinking right now because I'm trying to stay healthy, and talking for so long, it starts to kind of make your throat raspy. I'm about 45 minutes into this call, and if you're following along, having a great time, drop a comment, let me know where you're calling in from, and where you're watching from, and I'm really excited to help you guys continue more. I'm going to answer a couple of questions here.
Oh, hey, Quinn. Good to see you. Quinn asked, "I've found about five niches that can all be put to one store and a bit lower search volume but are being dropped shipped elsewhere. So would it be worth it to combine a bunch of okay niches to build a store if you're willing to put in a few more hours?"
I mean, it's okay, Quinn. Just understand what you're getting yourself into. And like I was saying, it takes more time upfront, and it takes more money, and it takes more effort to get a broad store to do really well. It's a lot less effort to just get a niche store doing really well. So if you find one niche, like let's just say a niche like steam showers, is a really good example, because there's pretty low search volume, pretty low amount of suppliers. But if you build a website just around steam showers, and you're the expert on steam showers, it is more likely that you're going to get those sales, and the sales are what's profitable.
So if you build a website around the bathroom, and you have steam showers as one of the category but it's not really optimized, you might not sell that many steam showers. But if you have a steam shower specific website, it's more likely you'll sell the steam showers and you'll be profitable that way because every single steam shower is maybe 10 or $15,000, or something like that, or $5,000. And if it's a 20% profit margin, which is about average, you're making 1000 bucks, or 2, or 3 per sale, that's going to be a profitable venture. Whereas, if you have five niches in one website, and you don't really do all the effort it takes to build them all out, and as far as the content, and the marketing, and the conversion optimization goes, it's tough.
And the other thing I have to warn you about that when it comes to making broad websites again is that the software that we use for niche sites doesn't work very well for broad sites. Shopify, Klaviyo, and stuff like that, you can set it up, but it's very difficult. You have to understand all the different things that Amazon had to do in order to build out their huge, gigantic, broad website. They had to put together a ton of custom coding. It definitely didn't happen overnight. And for a business like that, they had to pull in different things from different sources that have already done things, they pulled a lot of information from Walmarts, fulfillment centers, and stuff like that they had. Amazon did not happen overnight.
And broad sites take a lot more time to run, and it's more difficult to do the marketing because you have multiple different target markets coming to your website, like for instance, with electric bikes. Okay. We have a lot of different types of electric bikes now. Different markets of bicycle riders need different types of electric bikes. There's an electric city bike that serves a commuter. There's an electric folding bike for someone who owns a boat or an RV. There's an electric mountain bike for somebody who's more of a recreational enthusiast. There's an electric hunting bike for somebody who needs something that goes into the outdoors that's silent, which helps them with their hunting activities. There are electric scooters and mobility scooters for old people that can't even ride a bicycle, that just needs something they can press and go on them.
So you got to understand, if you build a website around the target market and the products that serve them, you're much more likely to make sales in a broad sense, rather than just building a website with multiple product categories to serve multiple target markets because the target markets will get confused. They don't know if the messaging for the website matches them. But if then messaging for the website matches a target market and serves them with the categories that they want, let's just say you built a website around hunting enthusiasts, and you serve them with bows, and you serve them with electric hunting bikes, and different high ticket categories around their needs, then the messaging of the website will match the target market, and you'll make a lot more sense to them. So keep that in mind when you're building your website out because internet marketing and using the software can be difficult if you do not have everything niche down to a particular target market. So think of your consumers first.
All right, guys. So with that said, and thank you, Quinn, for the question, if you guys have any more questions, drop them in the comment box, and I'm going to keep going here.
So number seven of my seven steps secrets to building a profitable high-ticket drop shipping business is upselling. I talked a little bit about this when I was talking about email marketing. But upselling is really important and key here, okay. When you find bestselling products, okay, you can do a ton of stuff with them, optimize the content, build more ads, blah, blah, blah. But the one way you're going to make more money online through your website is by selling people more things related to that product when they buy it. And upselling is a great way to do that. Know this, cross-selling, upselling is kind of the same thing. Cross-selling, generally speaking, is selling more products with the product. Upselling is selling a more expensive product instead of that product. But for this sake, we'll just call it all upselling.
So one way to do it is on the product page. You can sell the person accessories that are related to that product. So for an electric bike, you can sell them a light, you can sell them a bag, you could sell them a rack, okay, you can sell them mirrors, you can sell them helmets, shoes, whatever the heck you think that someone might buy with a bicycle or that type of bicycle. You can put little like checkboxes or variant boxes on that, and then information about the product description, and they can buy that along with the product. Okay, so now instead of just selling an electric bike for 1000 bucks and making $200, you'll sell lights, a bag, a rack, and an extra battery, and you'll make an extra, maybe $500 in revenue. And margins should be a little bit more in the accessories, so maybe that'll turn into an extra a $100 in profit, so instead of $200, you made $300 in profit per sale.
And when you're raising the margins, that's going to make your ad spend a lot more profitable and it's gonna make your business a lot more profitable in the long run. And it's funny, but people are actually more apt to buy from a website that has upsold opportunities, upsell options than a website that doesn't just because they can get more from one place. So definitely focus on upselling on the product page. And then on the cart page, you can install an app or just have it simply laid out there, other products that they might be interested along with that product. So they put that one product in the cart and then they can go and shop around for accessories and things like that and add those things.
And then make sure you're not just selling accessories, make sure you're also selling things like white-glove delivery if it's possible, or white-glove assembly, that kind of stuff. White-glove basically means that whoever's delivering it, is also going to set it up at the customer's house. So an electric bike, there are services that actually, drive to the customer's house, sit there like in front of the garage, or whatever, in their driveway, and assemble the bike right then and there for the customer. Then you can find things like that through Amazon services. You can call the bike shops around the customer's area, get a quote, and then just charge the customer, and fulfill it that way. It's up to you, but figure that out.
And then the next thing is extended warranties. And we actually recommend a website called Clyde. Clyde does extended warranties, and you can sell extended warranties, and make an extra profit that way too. And then once you're done with the cart page, you should definitely upsell on the, "thank you" page. There are apps in Shopify where you can offer more opportunities for people to buy things on thank you page, specifically accessories that go along with that product. And you can also go something like Zipify, OneClickUpsell, and it'll have like a whole sales funnel experience for the customer. So if they buy a specific type of electric bike, they'll get sent an up-sell, a down-sell, up-sell, down-sell, that kind of stuff. There's the whole sequence of pages, and that'll do according to [inaudible 00:48:19], and then it'll get them a final "thank you" page.
All right. And then, of course, you want to sell in the followup email sequences as well. And that's what I was talking about earlier. But in your email sequence, like in Klaviyo, you can make it for a specific product that's bought, then you send an email with the specific offer. It's really simple.
All right. Upselling is a great way to improve your business. But it's all theses stuff is not really going to get anywhere, right, if you don't have financial literacy, which is number eight of my secrets to high-ticket drop shipping success. Because this is a real business. And financial literacy starts with your personal finance understanding and then goes to your business finance understanding because business finance and personal finance are kinds of the same thing. A business is just something that's a little bit more complicated in your personal life usually. So when it comes to financial literacy, understanding that you need to do daily bookkeeping for your business is really important.
And it's really easy to do this, just keep a spreadsheet, and you can download all your sales data from Shopify and you can upload all your expenses from your credit cards or your checking accounts, and boom, you have your books. Understand what an income statement is, understand how a cash flow statement works, and how to create them. You can learn all this stuff for free on YouTube or other websites. And this is the knowledge that you absolutely need to have in order for your business to run, and to not just hit the shitter, because drop shipping takes upfront capital. It takes upfront capital, investment to build the business. And then throughout the business, you're going to have things that you have to deal with. And you're going to have to pay for products in your credit card deliver it to the customer.
But if something happens in the delivery process, and things get returned, or whatever, you need to keep track of these things. And that's what you do through your cash flow statement, income statement. And then at the end of every month or quarter of the year, you can create a monthly, basically, a budget that tells you what your income and outgoing is, and what you can afford to reinvest into your company. And that's really important too. Do not reinvest more than what you can afford to reinvest.
And the most important thing is that you save for taxes, specifically, income tax, but you also put your sales tax aside that you've collected in a savings account so that you can pay the tax authority on a quarterly basis, or monthly basis or yearly basis depending on how much you're taking. But if you save your income tax in a separate savings account, that savings account will accrue interest, and you won't even have to think about it. Just know your tax bracket, your expected income tax bracket saved in a percentage of each sale in that account and you'll be set. And that's how you do your finances.
The next thing you can do to kind of help you grow and budget for the future is reporting. So monthly reporting, quarterly reporting, and forecasting, yearly reporting and forecasting. Basically, what you're doing is you're taking trends that are happening in the marketplace, and that data, and then comparing it to your own financial data, and where you think you can grow, that's a forecast, and you can then reinvest based on your forecast, not just your current budget, where you think your budget will be at in the next year. And when you do that, you're more likely to get to that point. But do not reinvest more than your budget. All right, guys, financial literacy is key, kind of short there, but really important to your business.
Let's get onto the last step. The last step is, I think one of the most important things to eCommerce these days, and I think other influencers out there would agree with me, like as [inaudible 00:51:35] for instance, would definitely agree with me, the last secret here, number nine is video marketing. Video marketing is really important because with video, people trust, they get to know, like, and trust you, and they get to understand the products better. And more people consume video nowadays than any other content form. That's why I'm doing a video. I could make all this content into a blog post, and just share it, and I will anyways, but this video format is something that a lot of people love to watch and listen to, because they can focus on it, and they can listen. And we learn in different ways, and a lot of people learn visually and audibly, I don't that's a word, audiovisually, I'll say.
Video marketing is really important. I'm going to teach you a few specific ways in which you can improve your commerce business with video and audio. Number one, you can create slideshow videos for your best selling product pages. So what you do is use a tool like Google Slides, and you just import the images, and the sales copy and make it into a slideshow format and then run the slide show, screen record, and talk over it, and make a video sales letter for your product page. And it'll just be an easy way for somebody to consume your product page without having to consume it themselves, okay, somebody basically, spoon-feeds it to them. And find some nice music to play over it, some exciting music, and have a nice voice, and you'll sell more. Okay. It really works well. You can post it to YouTube, get traffic from YouTube to your product page. On your product page, it'll help you sell more, and it's a win-win for everybody.
Number two, create slideshow videos for your buying guide blog posts. Blog posts that help people go through the funnel are great, but when you have a video that has the same content on it, and it's on YouTube, people are way more likely to want to buy from you and are way more likely to go to your website. And you're pre-framing somebody for your offers way better when you have a video guide for the same buying guides you have on your website. Okay, so do the same thing for those.
And number three, you can create review videos of your products just like other influencers out there do. They don't have the eCommerce websites. You can get the same thing. The way you do it is either by buying the product that you sell and doing it in your own house, or with garage, or whatever. Or you can go to your supplier's warehouse showroom and film yourself unboxing, assembling, or installing the product that you sell, and then using it somehow. You can be the salesman for your business, you don't have to rely on your suppliers to be the salesman and posting their videos to your website. You can be a salesman. It's really cool.
All right. And then number four, create viral content by interviewing people at industry events. This stuff is what people love to watch. They love to watch interviews. Human interaction is one of the most important things in life. And if you can do it well, if you talk to people and ask questions, bring a GoPro with you to an industry event, and just hold it right here when you're talking to somebody. GoPros, have a fisheye lens, you can see the person, you can see yourself. And when you do that, whatever side you want to hold it on, and just like, "Hey, I'm interviewing for my YouTube channel. Would you mind if I do it?" "Yeah. Great. No problem." Just hold a GoPro there and interview somebody, ask them a few questions, and put it together in a video after the format.
And you'll get a ton of traffic of people that are interested in the event, and then they're going to see your website, they're more likely to get into your retargeting audiences, your email list, that way. You can market to them more that way. And when you catch the eye of influencers, you can build partnerships with them as well, and of course, the industry events themselves you can build a partnership with, and they'll really help enhance your business in the long run.
All right, guys, that's it. That's my nine secrets to building a profitable high-ticket drop shipping business. Let's go over it again. Number one was the mindset. Number two, niche selection. Number three, supplier sourcing. Number four, conversion optimization. Number five targeted ads. Number six, sales and customer service. Number seven, upselling. Number eight, financial literacy, so you keep more money from what you make. And number nine, video marketing so you can blow up and go viral.
I hope you guys enjoyed this video. If you want my free niches, let's go to ecommerceparadise.com/niches, get into my high-ticket drop shipping masterclass and build your own high-ticket drop shipping business at ecommerceparadise.com/masterclass. If you want me to build a store for you, I have a whole team of VAs that I have trained really well to build these stores within a month or two. And if you want one, go to ecommerceparadise.com/turnkey.
Thanks so much for watching us. And I will see you in the next episode. Take care.
eCommerce Paradise was created by Trevor Fenner of Seattle, Washington in 2015 to help you, the entrepreneur, to start and scale your own eCommerce business selling high-ticket products online with the drop shipping fulfillment method so you can make more profit per sale, have a sustainable and evergreen online business, get started with very little upfront investment, and live a location independent lifestyle. Trevor owns multiple 7-figure High-Ticket Drop Shipping eCommerce stores and is a digital nomad, traveling the world while working remotely with the help of his team of over 10 virtual assistants from around the world. Trevor is currently located in Bali, Indonesia. Trevor is also a passionate skateboarder, surfer, scuba diver, photographer, environmentalist, outdoorsman, fitness and tattoo enthusiast.
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