Drop Ship Secrets: How To Drop Ship Profitably
Trevor here with eCommerce Paradise.
This episode is called How to Dropship Profitably - The Ultimate Guide to High-Ticket Dropshipping.
I wanted to have this because many people ask me how to make a dropshipping site that's profitable. A lot of people who look for what dropshipping is or how to do it will find a lot of lower dollar products. The truth is, those websites can be profitable, but it's very unlikely, and it takes a lot of orders to become profitable. Facebook ads are becoming more expensive to run, and there is a better way to do dropshipping profitably. And that is what I am going to teach in this episode.
Keep It Simple. Understand the foundations, and focus on the basics. Dropshipping can be complicated at first, but understanding a few solid foundations behind it is important to make it profitable.
- Product Selection
In the beginning, everybody wonders what they should be selling online. I want to make sure you understand that it's much more profitable to start building a niche-specific store than to start doing a general store. I've seen many videos on YouTube where people are talking about starting with general stores first. The truth is that they do not convert as well.
It would be best if you do plenty of research and plan ahead of time to choose a profitable niche. Starting a general store will waste a lot of money and time as opposed to finding a profitable niche. Aside from that, you can get suppliers and sell products easier when you start a niche-specific store.
2. Price Range
Sell products that are five hundred bucks or more. If you do the math, the average take-home profit with drops is around 20 percent. If you sell a fifty dollar product, you're taking home close to ten dollars. But if you sell a five hundred dollar product or more, you're taking home one hundred dollars or more per sale. That's enough profit to pay for marketing expenses and keep money at the end of the day.
Choose products that are five hundred dollars or more. That's technically known as a high-ticket dropship. There should be competitors in your niche for sure, but in choosing a niche, make sure that there are not too many as well. As far as competitors go, the niche that you should choose shouldn't have tons of competitors. I usually try to make sure there's at least one or two. But if you find that there are more than ten competitors, it's going to be tough. I'm not talking about broadside competitors. I'm talking about niche-specific website competitors. It will be tough to compete in a niche where there are more than ten niche site competitors. I really never ran into a niche like that. I ran into niches where there are 50 plus broad sites selling the products, and those products are those that you wouldn't want to really sell anyway.
There should at least be some competitors, though. If there are no competitors in your niche, you either need to niche up or just choose an entirely different niche. Find competitors to know if they are dropship friendly, and if there are suppliers that are willing to dropship for you. You can find those in niche site competitors that don't have any address that they're doing drop ship only. Those suppliers usually are going to drop ship for you as well. You just have to set up a website first and then contact them and ask them if they dropship. And then, of course, you should understand your target market.
3. Target Market
Make sure that your target market has disposable income. It's a lot easier to run a business and sell to baby boomers and older people with a lot of money than it is selling to broke college kids.
You don't need to choose the perfect niche. There's never going to be the perfect niche. Just consider that you want to have enough interest in the niche to build a website with some good content. But even then, you really don't even have to have any interest in the niche.
This is not about building a business based on passion. This is about building a profitable business. Being an online retailer simply means you will help customers find products that suit their needs and solve their problems. It's more important to focus on the target market than to focus on the product category you're going to be selling. The target market, the people, at the end of the day, are going to be determining whether your business is enjoyable to run or a nightmare to run.
4. Market Research
Market research is pretty simple. You can use Google ads to find dropship-only competitors by typing in keywords related to those products. When you find those drop ship only competitors (just by finding that they have no address listed on their site or no brick and mortar store presence), you can simply extract their friendly suppliers into a spreadsheet. And then, the next step is creating your website.
5. Website Creation
Creating your website can be a very lengthy process, especially if you've never done it before. You don't really know what's involved. No worries, though. I will walk you through the entire process in the Academy. I'm going to give you an overview of how it works. The bottom line is that you need a website before you can call suppliers. Calling suppliers without a website will not get you a supplier. They don't want to just work with anybody, and they want to see a website to make sure you're legit, but not just any website. They want to see a really professional website.
The suppliers will look through your website, see what kind of content you have, and what kind of conversion optimization techniques you're using in sales and promotions. They're going to see how your sales funnel is - if you have email, pop-ups, all that stuff, so you're going to want to create all of that stuff. I'll be teaching all of that in the Academy.
Once that's all done, you can call suppliers. You can either call the suppliers or email them. But usually, a call works best. Fill out the dealer applications that they will send you, and then get their price, images and videos, and then add them to your website. And then comes the conversion optimization stage.
Once you have some suppliers, you can build into your website all sorts of trust signals, social signals, your email abandoned part sequences, and lead capture sequences. Build urgency and scarcity so that it gets people to place orders right then and there. This is especially important with high ticket dropshipping. Even when the products are expensive, people are shopping around to get the best deal. I will teach all of this in the course, and I will actually teach you how to build out using the best theme optimized for conversions out there for Shopify. Once you've optimized your store pretty well, you can start driving traffic to it.
I use Facebook ads for targeting anybody that's visited my website. I can retarget them on their Facebook feed and get them back to the website and remind them about this. The next thing I do is optimize the website for search engines and organic search. I also use social media marketing to get backlinks. After that, it's all about automation using systems to outsource your business.
Create systems for yourself first, then hire a business manager, usually in the Philippines, someone who can work overnight their time, daytime US time to manage all of your systems for you, and make sure all your customers are taken care of.
You can learn more at ecommerceparadise. com. I have an academy coaching program where I offer one on one coaching services.
I really hope you have the best luck in your ecommerce, high-ticket dropshipping business.
Subscribe to the YouTube channel eCommerce Paradise. If you have any questions, just post a comment on the video, and I'll be happy to reply.
We'll see you guys out there. 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.
AFFILIATE DISCLOSURE: Some of the links on this page may be affiliate referral links. I will get a commission from the vendor when you make a purchase after clicking them at no added cost to you. As a result, many of them also provide you with a special discount just for using my link. You can go directly to their support if you have any issues with their software or product.
Step-By-Step Training for High-Ticket Drop Shipping
Here are the next steps you'll need to take to start your high-ticket dropshipping business:
- Lesson 1: Research The Market And Choose Your Niche
- Lesson 2: Start Your Shopify Website and Legal Business Structure
- Lesson 3: How To Find And Recruit The Best Suppliers
- Lesson 4: Optimize Your Shopify Website and Sales Funnel
- Lesson 5: Launch Your Store With Paid Traffic
- Lesson 6: How To Manage Your Business
- Lesson 7: Automate and Outsource Your Day-To-Day Work
Resources for Starting A High-Ticket Drop Shipping eCommerce Store
These are the resources I've created to help you start your own high-ticket dropshipping eCommerce store:
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