Niche Selection Strategy for High Ticket Drop Shipping



The Ultimate Guide to dropshipping number 4. This is about picking products to dropship.


How to choose your niche. The last video where we were talking about finding the best dropshipping suppliers, there’s more about market research in finding your competitors and finding your suppliers and getting niche ideas. 


This content is all about going through those and choosing a specific one you want to choose. This will make or break your business. Take this slowly and go through it all the way and don’t skimp on this part of the process. 


It is important that you don’t choose your niche based on your passions that you actually choose it based on profitability. This goes all in line with the research that you have done. You should have done a lot of research to find out about the products. Which one is expensive, within the price range and the other criteria that I gave you before. 


It is important to know that even though there might be tons of competition that a niche is definitely is profitable if there are competitors. Don’t feel like because there are too many competitors that you won’t be able to compete. In fact, I show you in the drop shipping masterclass and in this dropshipping mini-course on how you are able to compete with your competitors even if they are really big online stores.  


The number one thing is building a niches specific site. It is what I teach in the drop shipping masterclass. It is how to build a niche-specific store. 


Let us get into how you are going to be able to set yourself apart when you choose your niche.  You might have some ideas, you might have narrowed it down to 5 to 10 different niches. At this point, you really want to be sure that you are going to be able to set yourself apart. There are some few suggestions on ways you can look forward as you build your business. 


Create your own product. It is a great idea. If you have money to invest like a few thousand dollars, consider doing research beyond retailers but looking at what are the best selling products in your niche and go to Alibaba.com  and research on what the cost to get that similar product directly from China. You will figure out what are the liabilities involved as well. 


If you consider that as an investment then you think it’s worthwhile then you can import that product to a fulfillment warehouse in the United States and sell it either on Amazon, eBay, and eBay. You can have it shipped directly to your customer from the fulfillment warehouse. You will still be doing dropshipping. That’s a great way to set yourself apart. That is to create a brand name and have online retailers and sell your product later on. 


You can start that way or do the internet stuff as an online retailer and grow into that later on when you feel comfortable and have the capital ability to do that. 


Get access to exclusive distribution or some sort of exclusive pricing. It is a great way to set yourself apart because that way you’re going to be able to compete better in the marketplace and have more profits so that you can grow your business more. That is very difficult to obtain. However, you are going to have to come up with a really great sales plan for the distributor and follow through on that and show them some real numbers in order to get them to want to commit to that. If they need marketing and you can do that for them and you actually come through and you get some really good sales numbers for them, then you should ask first for exclusive pricing or exclusive distribution. You can turn the supplier that likes to approve anybody into a supplier that only approves select retailers by telling them you will do more to sell their products if they give you exclusive pricing and exclusive distribution. 

Sell it at a lower price, with MAP pricing which means Minimum Advertised Price policy which we work with as an online retailer in the eCommerce Paradise academy. The thing about that is that you cannot sell below the price but you can offer discounts for a limited time and expiring coupon codes. I highly recommend doing that. The way you do that is you can set a coupon code on your whole site or you can set a coupon code on specific products. 


It will win you, customers. Be careful that you are not giving away too much of your profits but that you give away just enough to keep that customer. A good way to do that is to look at the competitors to see what they are doing in the marketplace. 


Add value in non-pricing terms. You have to think about free gifts. You will be able to give away or digital products that you will be able to give away along with that physical product that they buy from you. It is really important that kind of stuff because you will be able to gain a lot more customers using those methods. 

Another great way is giving value via content. If you have a niche that has a lot of questions and makes blog posts based on how-to keywords in your niche. That kind of stuff will help you sell products in the long run. There are apps in Shopify that I cover in the course. You are able to put guides and how to blog posts within product pages. That way, people will read them and trust you more and be more willing to buy from you as opposed to a competitor that does not teach them. 

Always think about getting high-quality product images. Is it a product that you are going to be able to go and see in person a take really good high-quality images of. If the supplier in the US then chances are you can somehow get to their warehouse and they will have demo products available in their warehouse. They can be at a trade show somewhere. You can go in person and take high-quality images of their products, you will be able to set yourself apart from the competition a lot better that way.  

The product has a lot of components and customization features and it is confusing. All these types of products are difficult to sell online as the competition will be less and it also gives you the ability to set yourself apart from the competition if you are able to easily distinguish between the different components and parts and options available. If you can create your site into a somewhat of a comparison website with lots of content about how you can make that decision better, then they are more likely to make that purchasing decision with you. 

Any product that has technical set up or installation, you can offer services to do that for them. There are things like White Glove delivery services and those are in the hundreds of dollars. Anything that’s in the hundreds of dollars, you will be keeping you 20% margin on usually. That can equal out to a great boost your revenue right there. Any product that has that kind of technical set up the installation or much bigger than that kind of a product is great to sell online. 


As far as the content goes, there are different types of content. Creating a buyer’s guide is important. The keyword you should be targeting is whatever your product collection is, you would make an article called best skateboards, best longboards, or best skateboards for street skating. You will go over all the different types and all the brands and all the variables and differences between them. That way, your buyers will be able to understand which one they should choose for their needs. 


Developing really in-dept product descriptions is also the key to making sales online. Is that niche, a niche that you will be able to dig into and figure out do or can you afford to outsource that one of the other. You can’t just take the manufacturer’s product description and make a business out of that. You have to create your own unique product descriptions. 


In the course, I teach you how to outsource those and how to optimize those description listings to make the most sales. 

That is something I do cover exactly how to do in the course. 


One thing you can do also actually gets from the supplier their specific product guides. It will be user manual, installation guides and set up guides. Those kinds of things are really useful. You can upload those to your website and embed them into the product description. It’s something your customers can download. You can also send them an email after the fact when they buy specific products with that user manual downloaded.  That is providing more value. 


The next thing is to consider whether this is a niche that you can do in-depth product reviews and useful videos like installation videos. 


If it is a product you will be able to obtain personally doing yourself then that’s awesome. If not, then consider taking my course because I will teach you how to get into Fiverr and outsource those videos for your customers. That way, you will be able to get a lot more leads and you will be able to satisfy your customers better. 


I talked about helping your customers understand components and comparing them. Another great thing to do is to understand component compatibility. For example, with a skateboard, you are not going to be able to have a big skateboard talk with a small tech. You have to tell people you have to have the same size deck like a skateboard truck in order to skate properly. 


That is something I would explain to my customers if I was doing skateboard dropshipping. Skateboarding is a niche where you are not going to be able to create a massively popular profitable dropshipping store as the price point is too low.




You have to understand who’s the best customers that you want to be targeting. There’s a lot of customers with different types of people and they should be treated differently with different types of funnel in different marketing communications. 




There are three different types of buyers I like to really target. It depends on the niche but some niche is hobby niches. Those types of hobbyists people are types of people that like to spend a lot of money on their hobbies. Those hobbyists are great to build a relationship with because not only they spend a lot of money but if they like you, they will also refer you to all their hobbyist friends who also spend a lot of money. 


If you want to get into hobby style niche, just understand you will be talking to hobbyists a lot and those types of people are really into it.  The only issue to that is sometimes they are very technical and stuff like that. It is okay if you aren’t very technical about it. You just have to be willing to figure out a solution to their questions. To get the answer to the questions for the hobbyists is to call your suppliers or you look it up online yourself.  


The next time a customer I like to work with is a business. Business clients are really cool because they will need to order from you all the time. If you give them a great incentive to do that and if you build your relationship with them by becoming their friend, they will definitely want to purchase from you as opposed to the competition, Amazon, or eBay. 


Definitely call business customers. If you have a business ordering from you, call them and ask them where you were found and what they want to order from you. You want to set up a relationship with you so that you will feel comfortable ordering it from us over and over again. 


You can give them a special discount or a special account on your website to make it really easy for them to log in and tell them how to bookmark your website and they call you at any time or email you with questions. Make sure you are there to actually follow through on that and help them out. Those kinds of customers are super lucrative. Some niches are just strictly business to business niches, like commercial products and stuff like that. 


You will be dealing with small businesses and large businesses and those types of niches. Commercial industries are really great to get into. I highly recommend them, however, they do require a bit more of the upkeep of customer satisfaction. You have to be calling them and establishing real relationships. If you re the type of person that is willing to do that, there’s going to be a very lucrative customer type for you. 


The next type which I covered in both is repeat buyers. These are people that keep buying from all the time. Those are the types of people that you want to treat well. A lot of people call them your VIP customers. Those are the types of people that are going to bring money and revenue into your business constantly. 


They are going to refer more people to you than anybody else. You have to treat those people the best. You have to build specific sales funnel for them. You have to build specific account types, specific email sequences, and all that stuff. You can create specific videos just for them because you want those people to keep coming back. You want to establish it and grow the friendship more. 




When it comes to consideration is you think about the pricing.  I think it is the most important part. Pricing is important and I cover this in other videos that the most important thing is you get a product that proceeds over $200. 


It is at least $200 - $500, that’s great. They require the least amount of customer support. However, they also have the least amount of profit per sale. You have to have an up to 10 sales per day on average to create a profitable business. 


If you are selling a product that’s somewhere around a thousand dollar level and you have a twenty to thirty percent margin, you are only going to need a few sales a day to make a profitable business. For the reason that you will be making a couple hundred to a few hundred dollars per sale or more. 


It might take a bit more customer service to sell those expensive products but you can do a lot of automation with that. You can create FAQ pages and questions and answers within the website. You can go and get reviews and you can videos. Everything that’s going to help that customer make that decision online as opposed to having to call you. Those are things that you should be doing if you want to consider selling at a higher price point. 


As you go high price, the amount of sales you get is lower but the amount of profit is higher. It’s worth it to put in time and effort into building those listings out. 


Understand also when you are looking at a niche, that unless they have MAP pricing in many of the supplier’s products, you really don’t want to go into the niche because it’s just going to be a race to the bottom. MAP pricing should be a foundation for what you are going to do. 


There’s a potential for marketing. You want to be able to set yourself apart in that niche.  There’s already a ton of websites that are doing good marketing it is going to be difficult to compete. You have to look at the websites that are your future competitors in that niche and think, are they doing good marketing. Are there product descriptions filled out other websites really good. Are they doing videos? Are they doing email sequences, or are they doing specific funnels for their customers? Are these professional ecommerce websites or are they newbie novice websites. If they are newbie novices then you can definitely compete and beat them in their own game. 


The ability to upsell accessories. A niche should always have accessories to upsell and should always think about that. Every single product page should have a product option on it to add accessories. There can be multiple accessories options. 


You should have pictures of the accessories links to separate listings where the accessories are. That’s going to help the customer understand the accessories and how they benefit them and purchase the accessory along with the main product. 


You can be that one-stop-shop for somebody in that way. They are really going to like you and shop from you often if you are the one-stop-shop. 


 As far as returns go, you want to niche with low returns and low turnover. The problem with fashion stuff, you get a lot a large return rate. You want to make sure you choose a niche that has a low return rate. Niches with big products that are really well built and easy to use or set up. Those types of products are great to sell because it’s more expensive and difficult to return them. If they have high-quality suppliers and products that are made being made then it is less likely that they are going to be defective. 


Industries that have been around longer are great like the furniture industry for instance.  All the sub-niche within the furniture industry are wonderful because they have been around for a long time. They have the time to perfect the product quality and perfect the processes for fixing damaged products. 


Another great way to identify a profitable niche is to look and see locally if those products are available. Look at your local Walmart, REI, Target, Best Buy whatever the niche happens to be but if they can’t find that product locally then they are obviously much more likely to have to buy it online and have it shipped directly to their doors. 


General speaking, smaller products are usually better but it still depends. Smaller products are easier to sell so you have more competition and they are more likely to be able to found locally. 


 In this case, I usually say that bigger products are better because they are more complicated to sell and they are not found locally. as often. You will be able to compete better and there’s a lot more accessories and upsells. In my training, I usually teach you to sell big products. It goes against the grain but that’s okay. 


The next thing you are trying to identify a profitable niche is measuring demand. Using the Google keyword planner tool is really cool. There’s also a tool called KWFinder.com. You just have to go to eCommerceParadise.com/ KWFinder and you will be able to use that tool to identify how many searches per month are being done on the keyword in your niche. 


It is a product-based keyword. Whatever happens that to be, it could be skateboard or longboard. Match types of that keyword which means if you are looking for phrase matches or exact matches, you will be able to see different variable keywords and look at those search volumes as well. You will be able to see where they are higher and lower. 


As for skateboard, it is probably higher in Southern California whereas kayaks are probably higher in the great lakes areas. 


Long-tail variation is really important. You have to understand that product keywords are the most lucrative keywords to be typed in. If you want to find some product keywords specifically in your niche, by searching Amazon and then type those basic product keywords into Google Keyword planner. 


You will be able to see how many searches per month happen on those products. If it is a lot because people are buying them a lot, that’s a really good sign. You should definitely check that out. 


Google trends are really good. It is important to get there as you are able to understand the seasonality of the niche and you will be able to understand whether something is trending up or trending down. Google trends are really cool. You just type it into Google and you will be able to see your niche there and that’s really important to look at. 


 You can see the geographical concentration. You have to go and look at your competition and measure and see how they are doing SEO. It is not just about teaching the course on how to do ads but it’s also showing up organically for product-based keywords, product type keywords and things like that. If you are doing really good for SEO, you are going to have a lot of competition. That’s okay because you are going to be able to compete with paid advertising. 


Eventually, you want to be able to be getting backlinks and organic ranking especially those product-based keywords so you can show up and get those sales organically. 


Authority of the competing site can be decided upon easily by just looking at the href profile of them. hrefs is an online tool. You can get it at eCommerceParadise.com/hrefs. You can see what the paid rank is for that particular website. You can also use a website similar to web.com. YOu can use all sorts of SEO websites. Page rank is important because if a website has a high page rank,  then it is going to be tough to compete. It will also become lucrative if you are able to find out if you can do guest posts on that website. It will link back to you somehow.  It is not important when you first start out though.


Some metrics to consider are what the slight’s quality and usefulness is of your competitors.  If they have a really useful website then you can definitely extract all the different things they do. If they do a really good job at product comparison, you can extract all the different ways they do that. 


You can then import that into your own website. You can hire VA to do that even if they have a really good reputation in their niche, they have things set up like BBB accounts or lots of stuff like that. Lots of trust seals and lots of expensive trust seals. You just have to understand that and you are to want to mimic that with inexpensive trust seals to be able to compete. 


The best way to really choose your niches it to finalize, your niche decision is really just to choose one and get started. When it comes down to your meet proactive with marketing, so choose the best niche you can out of all of them. You have to give yourself a few months as a timeline in order to launch. If you are doing a part-time or a few weeks if you are doing it full time.


Once you are able to do that, you give it a few more weeks to grow. The goal is to hit six figures in revenue within 3 to 6 months of launch. That means a $100,000 in sales with a high ticket dropshipping store. 


That is what I teach in my high ticket dropshipping Masterclass. 

If you are not ready for that yet, you can definitely jump into the next video where I am going to teach you more about the dropshipping method that I teach and how to get launch fast and how to get going. 


 Up to this point, you’ve done research on the market in which you found competitors are suppliers. Now you should have chosen a niche. It’s time to start your business and start building your website and actually get this thing launched. I will get you in the next content. We will see you guys there. 

Trevor Fenner

Founder of eCommerce Paradise. High-Ticket Drop Shipping eCommerce Entrepreneur, Podcaster, Digital Nomad, Skateboarder, Photographer, Tattoo Enthusiast, and Cat Guy. Currently based in Bali, Indonesia.

AFFILIATE DISCLOSURE: Some of the links on this page are 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.

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