When you have gained experience in dropshipping business, a high ticket dropshipping niche becomes an obvious choice for scaling your business profits. All other things aside, you need to have a deep understanding of what the high ticket dropshipping niche is all about. It is in many ways similar to regular dropshipping but also very different in many aspects at the same time.
High ticket dropshipping niches are very tempting and you may have been looking at the products while picking a niche for your dropshipping business at some point. But do remember, all that glitters is not gold. If a high ticket dropshipping product can give bigger profits, it also gives bigger challenges at many times. Thus it becomes very important to understand what those challenges could be, and if you are equipped to handle them, if they do come in your way.
We in no way want to discourage you from choosing a high ticket dropshipping niche. If done well, it could soon become the best thing you did for your business. Having said that, let's first get our basics right, by knowing more about them.
High ticket dropshipping niche is a set of higher price products targeted towards a set of audience. The first thing that differentiates them from a regular dropshipping niche is the price points. They should as a rule of thumb need to have a very high markup.There is no fixed price point that one can put for a product to be classified as a high ticket, but in general anything that costs more than $35 from the supplier is sort of classified as a high ticket.
With a general margin of 3x, the selling price of these products go in the range of $100+. Thus any product that you will be able to sell for more than $100 can be put into a high ticket dropshipping category. Once again, it varies from one store to another, and thus some may treat a product priced around $50 also as a high ticket drop shipping item.
Some examples of high ticket dropshipping items could be treadmills, jewelry, furniture, high quality dinnerware, memorabilia etc.
Finding the best high ticket dropshipping niches and products won't be that difficult. It is actually a lot easier than choosing a low ticket dropshipping niche. The main reason being the number of products available in the higher price range will be much more manageable compared to a lower priced item.
At Neilsberg, we want you to be able to choose the best high ticket dropshipping niche with ease and utmost confidence. In the list below, we will cover the best of the best high tickety dropshipping niches that you can consider for your dropshipping store.
Read on to discover the best high ticket dropshipping niches.
According to the research the average price for a home in the US has more than doubled in the last two decades. It actually is increasing at the rate of approximately 9% every year. At such high prices, the home owners no longer look for low end products to put in their homes. They want their home to be beautiful and classy. And the first thing for that is the furniture that goes in it.
Given that customers don't mind shelling an extra 2-3k for their half a million dollars
Home, home and garden niche can be on top of your high ticket dropshipping niche research. You can choose beautiful furniture pieces from your favorite dropshipping supplier.
Pro Tip: At such high prices, the customers won't be ready to wait for months to receive the order. Choose a local dropshipping supplier with delivery timelines of max 10 days. That will help you minimize the customer grievances related to delivery time expectations.
Some products to consider: Luxury sectional sofa sets, Dining table and Chair set
Price range: $3500 - $4000
Selling markup: 1.5 - 2x
Profit Margin: $3000 - $4000
Marketability: Medium
Jewelry is another niche that you can surely consider as a high ticket dropshipping for your store. You can find products ranging from hundred dollars to tens of thousands of dollars. Thus if you do your research well, you can surely find one of a kind jewelry product that you can easily do marketing for.
Pro Tip: Even though you may get tempted to pick products worth tens of thousands of dollars ( with a whooping margin of up to ten thousand dollars), don't even think about choosing them for your store. There are hundreds of high end jewelry stores and you do not want to compete with them. At such high prices, the expectations are going to be very high and even one bad sale is going to be enough to close your store forever.
Rather, pick something in a sweet spot of $100 - $ 250. Within this price range, you can surely find statement pieces from your dropshipping supplier that you can market well to your customers.
Some products to consider: Designer customized rings, Bracelets, Necklaces, Engagement rings, Wedding rings
Price range: $50 - $250
Selling markup: 1.5 - 2x
Profit Margin: Medium
Marketability: Medium
Watches could be the trickiest niche for you to select a product from. As the price for a watch could range from a dollar to tens of thousands of dollars, you need to be absolutely certain what you choose for your store. We have covered inexpensive watches as a dropshipping niche to avoid and you need to remember that as well.
Pro Tip: At any cost, stay away from basic watches that cost you under $40. If you want to make a business out of selling watches, pick something that is unique and classy. Just like jewelry there are a ton of watch brands and you surely can’t compete with all of them. Rather pick statement pieces that your customers with high end taste can afford. If it is unique, customized, handmade or has another feature, you will surely be able to market and get sales for it.
Some products to consider: Watches with hobbyist theme, Conceptual watches
Price range: $50 - $200
Selling markup: 3 - 4x
Profit Margin: High
Marketability: Medium
Customers generally don't think much about money when it comes to supporting something related to their hobbies. You can easily find a dedicated product market fit for the customers with an enthusiasm for their expensive hobbies.
Pro Tip: Pick products that are functional and are good quality. Hobbyist customers will go to any length to support their hobbies and if your product gives them a bad experience, they are surely not going to let the issue go off easily.
Some products to consider: Camping and Fishing accessories
Price range: $75 - $125
Selling markup: 2 - 3x
Profit Margin: High
Marketability: Difficult
You can surely imagine the thoughts that a bride puts into the wedding preparations. Right from a table setting to the wedding decor, everything has to be just perfect. Additionally, a bride wants her wedding to be as unique as possible in her price range. Thus if you can cater to this target market with a set of unique, customized, classy products in your store, you can one hundred percent make an amazing business out of it.
Pro Tip: Don't pick regular products as they will surely be available at the neighborhood store. What you should be looking for is something that is unique and possibly customisable. If you can help them make their special day beautiful, they don't think twice before making a purchase.
Some products to consider: Bridal jewelry set, Customized wedding dress
Price range: $75 - $200
Selling markup: 2 - 3x
Profit Margin: Medium
Marketability: Medium
As compared to the standard dropshipping niche, the biggest benefit of a high ticket dropshipping niche is that you can achieve the same or more profit even after fulfilling just a fraction of the number of the orders.
For example: if you process 100 orders with a ticket size of $10, your revenue would be $1000. Whereas you can achieve the same revenue of $1000, if you process 10 orders with a ticket size of $100.
As shown in the above example, by processing just the 10% of orders, you were able to achieve the same revenue and more profits ( we will explain that later in this article ). Thus, the biggest benefit of a high ticket dropshipping niche is that you can save a lot of effort and money by processing just a fraction of the orders.
These efforts saved can be channeled back into scaling your business and making more money from it. Additionally, by having to deal with a lesser number of orders, you will be less stressed and thus the business will feel more fun and worth the entrepreneurship journey.
It is a wonderful thing to look at the most profitable dropshipping niches for your store. Profit projection is a smart move and the very first thing that a dropshipper should look at. After all, if your dropshipping business doesn’t generate any profit in the end, would it be worth your time and efforts? Of course not.
That being said, let's first learn how to calculate profits by considering all the costs involved. This will not only help you in choosing a dropshipping niche over another, but also give you a fair idea of how your balance sheet will look like in the end.
After we have learnt how to calculate profits, we will cover the list of most profitable dropshipping niches that we recommend. If you already know how to calculate profits, you can skip this part and jump to the list now.
You will find a lot of challenges in the high ticket dropshipping niche. A lot of things that are not an issue in regular dropshipping become a major challenge as soon as you deal with the high ticket dropshipping niche. Let's look at some of those challenges below:
High ticket dropshipping niches need to have very short delivery timelines. On your regular low ticket dropshipping store, you probably have a supplier based out of China. And the average shipping time could be a couple of weeks.
These kinds of timelines could work when you are selling low priced items. But as soon as you deal with high ticket dropshipping, the customers expect same or next day delivery. As you know for sure, delivering products in such a tight window won't be possible with an overseas supplier and thus for a high ticket dropshipping store, you would ideally need to deal with a local supplier.
If the customer is ready to pay a high price, they expect the product to be of a top notch quality. Always remember that the customers don't know of the dropshipping model and they expect you, the seller, to take responsibility for every aspect of their order.
Majority of the drop shipped products are run of the mill products that are visually appealing and are impulse shopping worthy. They mostly are products made at a very large scale by a manufacturer who is willing to distribute them to a ton of suppliers, who can further pass it on in the cycle. As these are mass manufactured, the price points are extremely low and that is the reason, you can buy so many less than a dollar products on the supplier website.
When you sell these products, the customers generally don't have high expectations and won't be looking for a trustworthy product as such. As long as the product looks and functions as intended, the customer won't give extra thought to it. They won't mind if the product doesn’t last for long.
On the other hand, if you sell high ticket dropshipping items, the expectations change drastically. The customers will expect the product to be of a top notch product quality, and to be durable too. Obviously, if you are shelling out hundreds of dollars, you wont accept a shabby product.
When the customer is ready to buy a high ticket product from your store, you surely have done a great job. If your store is able to sell a high ticket dropshipping product, you must have nailed all the required elements of a high ticket store.
The customer surely sees a lot of value in your product and that is why they are ready to buy it from you. But as you may know, the business isn’t just the product, but many many more things. They will ideally like to gain trust in your store and thus will ask a lot of questions before they place an order.
They will expect a good return policy, shorter timelines, good packaging and pretty much anything related to a good customer experience. Thus for a high ticket dropshipping niche, you will need to invest in a customer support team.
No matter how good the product is, you will surely get valid requests for returns and exchanges. If you put yourself in customers' shoes, you will expect the same. As a basic flaw in dropshipping ( as compared to a regular ecommerce ) you don't keep the inventory and thus the returns will always be tricky.
In a regular low ticket drop shipping model, many dropshippers leave the product with the customers itself, as it will cost them more in shipping and operations to have the product shipped back to the supplier ( if at all they accept returns).
But in a high ticket drop shipping model, it won't be possible for you to leave the product with the customer itself. Thus you will need to deal with returns shipping and additionally look into reselling the product. These costs could eat up a lot of profits. Thus it becomes very important to choose a drop shipping niche with low returns rate.
When choosing a high ticket dropshipping store, you will need to invest a lot in product setup costs. First thing first, your product needs to look amazing on your website. You can’t use the stock photos given by the supplier, and will surely need to get some uniqueness into it by using your own photographs and videos. Thus there will be initial cost related to the product creatives.
Additionally, a high ticket dropshipping product will need to be very nicely packed and unless the dropshipping supplier is giving good packaging, you will need to invest in that as well. Mostly in these cases, many of the dropshippers opt for store branded products and thus you may need to get a supplier who is ready to put your branding on the product and the packaging as well. All these seem nice to have, but do need a lot of investment and you should be ready for that from the beginning itself.
Ideally you should find a local supplier for your store. The product need not be made locally. It is perfectly okay, if the product was made overseas and the local supplier has a business model wherein they are maintaining inventory in hand. Only and only if the supplier can give you rush delivery timelines, it can be on your shortlisted list.
The supplier also needs to have a good return policy that you can use in your store. Even if one supplier is charging higher than the other for a same or similar product, go for the supplier with a favorable return policy. You will surely need it for your high ticket dropshipping store.
Look at the product catalog that the supplier is offering. If you see a couple that you can later put in your store, it will be a blessing in disguise. Because, when you want to scale, it would be a lot better to source from the same supplier rather than dealing with a new supplier. You already would know a lot about the suppliers capabilities at that point of time and additionally be in a position to demand for a discount as you will be sourcing more from them.
As you may need to have products that carry your branding, it will be nice to choose a supplier with inhouse branding capabilities. It will cost you a lot more in operations to do branding at a third party.
To summarize, a high ticket dropshipping supplier need to meet the following conditions:
- Based locally
- Good and favorable return policy
- Scalable product catalog
- Branding capabilities
As long as you do your research well, have a marketing plan and do not choose products only on the basis of high profit margin, you can surely succeed with a profitable high ticket dropshipping store. High ticket dropshipping niche products generate a lot of profits and you have to process way less orders to achieve similar profits compared to a regular dropshipping store. This way you will have a lot of fun in the business and will have a lot of time to work towards scaling your business.
Even though we have listed the top 5 high ticket drop shipping niches, don't mistake this insight as a recommendation to target only these 5 and avoid everything else. As a part of this insight, We wanted you to know what parameters to look at. You can very well use this methodology to find products within the selection from the dropshipping supplier and have some success with.
As always, if you have any questions or need any help, just drop us a line and we will be glad to help.