High Ticket Dropshipping or Low Ticket dropshipping is a dilemma some beginners face when starting out. When researching which decision is right for you, you’ll undoubtedly come across many mixed opinions. Most dropshipping gurus will be biased towards their own method and will criticize the other, but this is generally because they are selling something like a course and want your money.
I am not selling anything and I’ll try to keep this as unbiased as possible and give you a rundown of both approaches so you can decide which is right for you.
The 2 main approaches people focus on when entering the world of dropshipping are the high priced quality products or the low priced products generally sourced from China. Whilst there is no exact answer as to which one is better, hopefully, this article will help give you some insight into which is more suitable for you. There are pros and cons to both methods so let’s take a look.
Low Ticket Dropshipping
This is probably the type of dropshipping you’ve heard about most. This is usually done on AliExpress which is basically China’s version of eBay. AliExpress has millions of products to dropship at cheap prices which is why it’s the number 1 marketplace for dropshippers.
AliExpress Dropshipping sounds very simple for the unknowing beginner to make a lot of money quickly. Simply add some products to your Shopify store from AliExpress, run some ads and the customers make purchases and you make easy money. This just isn’t the case. You’ll need to devote a lot of time initially to learn each process thoroughly before you can compete with the guys making all the money.
Pros of Low Ticket Dropshipping from AliExpress
- Prices -This is the number one reason why everyone dropships from AliExpress. Prices are cheap which makes your profit margin bigger.
- Range – This is the world’s largest marketplace for products to dropship. There are literally millions of products to search through. I’ll be impressed if you can think of a product that’s not on there.
- Start-up costs – You can start a dropshipping business from AliExpress for a couple of hundred dollars with the potential of making millions. This is unheard of in the real world.
- Risk – This is related to the last pro. If you find a product that isn’t profitable the most valuable thing you’ll lose is time. If a product isn’t working move on to the next one. If you fail, fail quickly.
- Automation – With Shopify and Oberlo you can add as many products to your store from AliExpress as you want with just a click of a button.
- Suppliers – No need to ring around and find suppliers in your country and try to talk them into accepting you as a reseller of their products. With AliExpress you have every supplier on one platform for you to choose from.
Cons of Low Ticket Dropshipping from AliExpress
- Shipping times – This can vary a lot depending on what the product is, where it’s being shipped to and where the warehouse is where the product is being shipped from. Your customers can be waiting up to 6 weeks for their products.
- Quality – Product quality is hit and miss, more often than not though it’s a miss. Purchasing the product yourself beforehand might be the right move.
- Customer Service – If you’re selling large quantities of your products, you’re going to have to hire a virtual assistant to help with customer service. The fact that the quality might be questionable and shipping times may be long will result in lots of customer service.
- Suppliers – Reliable suppliers can be tough to come across. Sometimes they may not speak the best English, sometimes they may ignore you. Sorting out problems can be a frustrating process with some Chinese suppliers. When there’s a problem with a customer’s order, it’s going to fall on your shoulders, not your suppliers’.
- Competitive – As this is the most popular method of dropshipping means the competition will be greater. When you find a hot new product to sell, you can bet you won’t be the only one. Once you have found a profitable product and you start advertising on Facebook, you’ll have others watching your ads and copying you.
High Ticket Dropshipping
This approach generally involves higher quality products priced over $200, but there are no rules when it comes to pricing. Anything under $200 and your supplier may not deem it worth their while to package and ship 1 item. A product range between $500 and $1000 is ideal but not essential. For items to sell over $1,000 online, I suggest you read my article here.
Dropshipping high ticket items from AliExpress is a bad idea and I would not recommend it. If people are spending a lot of money online they want a quality product, fast shipping and good customer service.
Your high ticket dropshipping business’s success depends on 2 main things, choosing the right niche and connecting with the right suppliers. There are other factors, but if you get these 2 right the rest is just a learning process.
Pros of High Ticket Dropshipping
- More Profit – Not a higher percentage of profit, but more profit per sale. Think about the huge difference in profit margin selling a $15 product compared to a $1000 product.
- Less Customer Service – You are still going to have a certain amount of customer service but it is generally a lot less due to the smaller volume of sales. Order fulfillment will also be much less with high ticket items.
- Suppliers – Managing product or shipping issues are far less stressful when dealing with high ticket suppliers in your own country. As you will deal with them frequently you build more of a relationship with your supplier which makes your life easier.
- Sustainable – With high-quality products your store is a more long-term sustainable business that could continue making you income for years to come. AliExpress deals with many trends that can make you a lot of money in the short term only.
- Valuable Asset – Because its sustainable it means your eCommerce store can become a valuable asset that you can sell. Many established dropshipping stores can be sold for huge amounts of money.
- Authority – The advantage of building a niche high ticket store is you can become an authority in that particular niche to help with google ranking. You can start a blog around your niche and target your keywords for SEO. With a general store, you don’t have a niche or a particular audience to target.
- Shipping – When dealing with domestic suppliers the shipping times come down considerably, which means happy and possibly returning customers.
- If you find a hot product to sell, it’s generally less likely you’ll have people copy you. With Aliexpress people will see your Facebook ads and simply add the product to their store from Oberlo and run Facebook ads themselves. With high ticket you’ll need to source the products, secure the supplier and create a trustworthy store around that niche.
Cons of High Ticket Dropshipping
- Harder Sale – You need to work your marketing magic when it comes to selling a high ticket product. This is not an impulsive buy, they may do research and read reviews before making the purchase. You need quality HD product images, video ads and a persuasive product description.
- Trust – They need to trust you a lot more with high ticket items. This means your website needs to look legit and contact information should be easily accessible. You will need to be fairly knowledgeable about your product because you are more likely to get queries before a purchase is made.
- Start-up costs – You will need to have a bit more money to get started than with low ticket products. If the first item you sell is $2000 you will need to pay that to your supplier before they ship to your customer.
- Contacting Suppliers – Yes there are dropship directories to help connect you with suppliers but I wouldn’t solely rely on that. To have a successful high ticket dropshipping business you will need to call a few suppliers and try to persuade them to accept you as a reseller, which can be nerve racking for some people.
- Advertising Costs – The most optimal way for advertising high ticket products is on google PLA’s (Product listing ads). This can cost more than low ticket items advertising on Facebook but it is however high converting advertising. You will get a better bang with high ticket products on google PLA’s, which makes this a con and a pro.
As you can see there are advantages and disadvantages to both dropshipping approaches. Low ticket dropshipping focuses more on Facebook ads whilst high ticket products focus more on Google ads.
When it comes to learning about high ticket dropshipping there are several courses online to purchase. I have a review of dropship lifestyle if you’re interested to hear my opinion of their high ticket course.
Personally, I believe high ticket dropshipping is the smarter method for a long-term sustainable business. Be aware it can be more work initially to get your store fully complete. You’ll need a legitimate looking Shopify store, well-written product descriptions and acquire some quality suppliers.
Many people may disagree with me and that is ok. Check out this article by Wholesale Ted, she believes you should not dropship high ticket items. I read her article and I don’t agree with her but everyone is basing their opinions on their own experiences.
With High ticket quality products, you’ll be dealing with a business that has products that will have long-term demand. AliExpress tends to deal with trending products that are only profitable in the short term.
This means your business will be worth a lot more money eventually. Neither approach is passive, however, if you’re making 100k a year with both methods, high ticket will be much less work due to smaller sales volume.
Saying all that, if you’re a beginner and considering dropshipping with AliExpress it’s definitely worth having a go. The barrier to entry is so small that you don’t have much to lose except a bit of time. If you’re a complete beginner to high ticket dropshipping it may be worth checking out my beginner’s guide to high ticket dropshipping.