I am going to talk to you about the main differences between high ticket dropshipping and low ticket drop shipping.
High Ticket Dropshipping
- Price points are between $200-$1000
- Average profit margin: 20%-30%
- General profit is higher
- Big bulky products (expensive, work with the supplier to fix damages)
- Get a fraud detection software
Low Ticket Dropshipping
- Price point is $10 - $50
- Average profit margin is 40%
- General profit is lower per sale
- Smaller products (low cost, can refund and forget about it)
The same amount of work but 5 to 10 times as much as profit with high ticket dropshipping.
It is not hard as it sounds, it just takes a little bit of different marketing methods and one more prerequisite before you get into. You need to have high limit credit card to be able to buy your cost of goods sold before you ship them out.
Generally speaking, we offer fast and free shipping with our high ticket dropshipping stores. We want our order to be ship within three to five business days. If we take an order via merchant card processor like Shopify or Paypal. The processor takes three to five business days just to deposit the funds. If you wait that much of time to send the PO to your supplier to ship. They will take another three to five business days to even ship it. That means it will take 10 to 14 days or two full weeks to ship the product. The customer will not get the product for three to four weeks. That is not good. We want the customer to get the product within a week.
The cool thing about using your credit card is you will get reward points if you use a cashback card. You will get 1.5% to 2$ cash back depending on the card you use. That will add to your net profit.
I recommend getting niche-specific stores. For beginners, start with a single product store and slowly expand to a niche store.
Just remember, you only need one store to get a full income. Get started today, choose a niche and make it successful.
Success is only something you get through failing many times. When you get up and try again, you will be more successful in the long run.
You can get my free Niches List, just go to www.ecommerceparadise.com/niches.