What is Drop Shipping with High Ticket Products? with Ben Knegendorf of Dropship Breakthru
Michael Veazey
00:28:52
LinkAbout this episode
What is Drop Shipping?
Drop shipping is when a store doesn’t keep inventory and instead buys from a supplier and then has the supplier ship directly to the customer.
This is a fulfillment method for online retailers. Drop shipping gives you a chance to sell products that you don't have in your possession, which means you can offer more products for your customers. There are many benefits of drop shipping.
Another simple but easily-missed point is that because it demands no cash tied up in inventory, it is much more scalable if it takes off. All ecommerce operators reach a a point where growing their business means expanding the catalogue a lot. Private label sellers often find they need to find an extra $100-500,000 in funding. Many simply can't do it; others have to enter the risk of very large loans or investing their life savings. The high-ticket dropshipping model just bypasses this issue.
Drop Shipping Explained
Drop shipping is a method of selling goods without having to keep them in stock. In this case, the supplier ships the goods directly to the customer. The retailer receives payment from their customers and pays the supplier afterwards. This allows you to have a website or physical storefront without having to purchase product ahead of time and risk tying up your capital in inventory that might not sell.
Again though there are now ready off-the-shelf solutions, so technical know-how is no longer much of a barrier.
High-Ticket Drop Shipping
High-ticket drop shipping is a business model that focuses on selling high-ticket items. The reason this type of drop shipping works so well is because high-ticket items have much higher profit margins, which means you can make more money with less sales.
High-ticket items also require far fewer customers to generate the same revenue as low-margin products, which makes it easier for your company to grow . You’ll find yourself with fewer customers overall because each one will be spending a lot more money than someone who buys a lower priced item. That means you have far fewer headaches when it comes time to manage your customer base!
How Does Drop Shipping Work?
Drop shipping works like this: You find a product you want to sell, and then you make an agreement with the supplier that lets you sell it without having to buy the inventory first.
The arrangement is simple—you tell your drop shipper what products you want to sell, and they take care of everything else. They will handle orders, ship them out directly to customers, collect payment from customers on your behalf, and then ship those items directly back to you after they've been sold (this is called "fulfillment"). And because the suppliers have already taken care of the cost of buying the inventory for themselves (which is usually pretty high), there are usually no setup fees involved in starting a drop shipping business!
How to Start Your Dropshipping Business!
Now that you know what drop shipping is and how it works, let's get started with setting up your own dropshipping store.
First, register a domain. Ben uses Namecheap but anywhere similar will do. $12 a year
Get a google workspace and an email address for about $12 a month.
Get some professional but simple branding work done. You need a logo and a simple home page with sliders or well laid-out images. Cost around $100.
Set up Shopify. This will be your online store platform where all of your products will be stored and sold from. That costs around $29 a month.
Next, choose a niche product that you want to sell in order to start building your customer base. You can make the most money if you find something that no one else has already started selling yet! It's best if this niche product is high ticket (at least $50) because it means customers are more likely to buy from you instead of going directly through Amazon/Ebay or whatever other site they're familiar with buying things on already.
Drop shipping is when a store doesn’t keep inventory and instead buys from a supplier and then has the supplier ship directly to the customer.
This is a fulfillment method for online retailers. Drop shipping gives you a chance to sell products that you don't have in your possession, which means you can offer more products for your customers. There are many benefits of drop shipping.
Another simple but easily-missed point is that because it demands no cash tied up in inventory, it is much more scalable if it takes off. All ecommerce operators reach a a point where growing their business means expanding the catalogue a lot. Private label sellers often find they need to find an extra $100-500,000 in funding. Many simply can't do it; others have to enter the risk of very large loans or investing their life savings. The high-ticket dropshipping model just bypasses this issue.
Drop Shipping Explained
Drop shipping is a method of selling goods without having to keep them in stock. In this case, the supplier ships the goods directly to the customer. The retailer receives payment from their customers and pays the supplier afterwards. This allows you to have a website or physical storefront without having to purchase product ahead of time and risk tying up your capital in inventory that might not sell.
Again though there are now ready off-the-shelf solutions, so technical know-how is no longer much of a barrier.
High-Ticket Drop Shipping
High-ticket drop shipping is a business model that focuses on selling high-ticket items. The reason this type of drop shipping works so well is because high-ticket items have much higher profit margins, which means you can make more money with less sales.
High-ticket items also require far fewer customers to generate the same revenue as low-margin products, which makes it easier for your company to grow . You’ll find yourself with fewer customers overall because each one will be spending a lot more money than someone who buys a lower priced item. That means you have far fewer headaches when it comes time to manage your customer base!
How Does Drop Shipping Work?
Drop shipping works like this: You find a product you want to sell, and then you make an agreement with the supplier that lets you sell it without having to buy the inventory first.
The arrangement is simple—you tell your drop shipper what products you want to sell, and they take care of everything else. They will handle orders, ship them out directly to customers, collect payment from customers on your behalf, and then ship those items directly back to you after they've been sold (this is called "fulfillment"). And because the suppliers have already taken care of the cost of buying the inventory for themselves (which is usually pretty high), there are usually no setup fees involved in starting a drop shipping business!
How to Start Your Dropshipping Business!
Now that you know what drop shipping is and how it works, let's get started with setting up your own dropshipping store.
First, register a domain. Ben uses Namecheap but anywhere similar will do. $12 a year
Get a google workspace and an email address for about $12 a month.
Get some professional but simple branding work done. You need a logo and a simple home page with sliders or well laid-out images. Cost around $100.
Set up Shopify. This will be your online store platform where all of your products will be stored and sold from. That costs around $29 a month.
Next, choose a niche product that you want to sell in order to start building your customer base. You can make the most money if you find something that no one else has already started selling yet! It's best if this niche product is high ticket (at least $50) because it means customers are more likely to buy from you instead of going directly through Amazon/Ebay or whatever other site they're familiar with buying things on already.