How To Start Your High-Ticket Drop Shipping Business in 2020
There are 8 easy steps to starting your own High-Ticket Drop Shipping Business in 2020, but it is crucial that you do each one right to be successful.
- Niche research: It's important to do your research first before diving into a niche market and selling high-ticket products. If you skip this step, you might choose a niche where you can't get sales because of competition, or worse, you'll make sales but end up with nightmares to deal with. Get my free niches list and my niche research videos for guidance on doing proper research.
- Business finance and budget: You need to have a solid financial foundation before you get started with dropshipping, especially selling high-ticket products. I recommend having a solid cash flow already from a job or business or investments or savings. You need to also have a good credit score so you can get business credit cards to cover your cost of goods sold and expenses because cash flow management can be tough with dropshipping. Also, consider consulting with a CPA before you get started so you know all the legal and tax liabilities you face in your local area for starting a business.
- Legal business structure: Depending on whether you have assets to protect or not or a partner you're working with, you'll need either a sole proprietorship or partnership and some sort of LLC. You'll also need an EIN, a seller's permit, a business checking and savings, and a business credit card. You might need additional business licenses or not depending on your state or country, so consult with a local CPA.
- Shopify store: This is the best eCommerce platform and the one I use and recommend. It's easy to set up and easy to manage. You can read more about it in my Shopify Review.
- Suppliers: You'll need suppliers to do drop shipping... but how do you find them and how do you get dealer accounts with them? It's pretty simple actually... You just find your online-only competitors and then find the website and contact info for all the brands they sell, then call those suppliers and get an account with them. You can read more about the process in my Best Dropshipping Suppliers blog post and my Supplier Sourcing Videos Youtube Playlist.
- Conversion optimization mechanisms: You'll need to optimize your store, sales funnel, and marketing automation BEFORE you launch paid ads so that you make the most of your paid ad spend. Read my 20-point conversion optimization checklist so you can get the work done.
- Paid ads: This is one of the most important steps as it's how you get targeted buyer traffic to your website for cheap. I use Google Shopping ads and a special funnel called the "inverted funnel" to send bottom-of-the-funnel traffic to my e-commerce store product pages. This traffic usually converts at a 1-2% conversion rate, so I can usually get a 20-40x return on ad spend. Read all about this method of driving paid traffic using Google Ads.
- Sales, customer service, and management: The truth is, you won't have much of a business if you can't close sales, provide great customer service, and manage your order fulfillment process and product page updating processes in a smooth and consistent manner. I recommend you focus 100% on learning these as you will grow your business much more if you become a life-long student of sales, customer service, management, and marketing. Read my blog post about what it takes to run a 7-figure high-ticket drop shipping store.
Want to get started and have me as your mentor?