One thing to make sure when choosing a niche is to make sure it is profitable. We are talking about products over $200 to $1000. You want to make sure there are already competitors out there in the space. You have to make sure they have dropshipping suppliers. These websites should be online only, not having a physical storefront.
KEYWORD SEARCH VOLUME
You want to make sure that there’s lots of keyword search volume, demand, and trending. You also want to make sure that your store is new. The older the store looks, the more likely it is that in that industry there have been online sellers for a long time. They have already established some special relationships with suppliers. It would be hard to break into that industry.
Once you find your list of profitable niche ideas, you should start thinking about the target market you are reaching out to. You want to make sure that they have enough to afford the products. They are wealthy individuals. You don’t want to work with niches where you are serving people that are broke, young, and fickle. You will have a better experience in high ticket drop shipping when you work with people with disposable income.
You also want to work with passion-based niches. Markets of people that are very passionate about what they are buying. To match that, you want to be very passionate about the niche that you are selling. Consider things that are hobbies like hunting, fishing, surfing, biking, snowboarding, and rollerblading.
MY PASSION, MY NICHE
I was passionate about bicycles. I found a niche which is fixed gear bikes. It was also trendy at that time. I did what was necessary to sell them really well. However, I moved out of that niche because of the target market. The next niche I saw was electric bikes. The target market is older and has a disposable income. I was passionate about the bike and I know about electronics because my dad is an electrician engineer. I learned a lot of about electronics and computers as a kid. I was able to provide support for the products.
The trick is to find something that you are passionate about. Whatever that happens to be, I am sure that there’s some sort of a high ticket around it.
The cool thing about the high ticket is that you are going to make more per sales. The average profit margin is around 20%. With a 20% margin of $1000, you are looking at a $200 profit margin. Usually what we look at for ad spend is at 10x or 20x ROAS (Return On Ads Spend). If you spend $1000 you get 10,000 in sales and for $2000 you get 20,000 in sales.
Over time, it can improve with optimization. In the beginning, you want to at least be putting in $50 a day and making $200 a day. With that, you will have a net profit that is substantial so you can reinvest until you are at a level where you can start taking a net profit as income.
I have had a business in the past that have supported me full-time after 3 to 6 months of optimizing my website. It depends on your ability to execute the steps that need to be done. It also depends on the niche you choose.
Profitability matters most but also your passion and ability to provide sales and service for that niche also makes a big difference for it.
Don’t just jump out there and start selling 5,000-10,000 saunas knowing nothing about your niche. It will be tough for you to provide the best sales and service in order to close a sale. You may also learn on it first or maybe you can think about the things that you have done in your life.
You can think of the skill sets you already have and try to consider selling something to do with skill sets you already have. It will give you a big head start. You can be so passionate about something that you can just like talk shop forever with your business partners, friends, suppliers, and customers. It will help you get way ahead in business because you are going to do things that most people won’t do.
You can create youtube videos and blogs about your niche. You will be on the phone with your customer and make best friends with them. You will turn them into raving fans. You will hang out with your suppliers. You will go meet up with them and go to conferences in your industry. You will have meetings and take them out to dinner. You will be able to do things in your industry that most of your competitors won’t be doing. You will have a big head upon them and leg upon them in the competition. You will properly get better pricing and have access to their big deals.
Get our free profitable high-ticket niches list and high-ticket drop shipping secrets mini-course at https://ecommerceparadise.com/niches