When starting a business, there are a lot of decisions that need to be made carefully. For starters, deciding on the nature of your chosen business entails a big jump. One might prefer to build his product, another may opt for a brick and mortar store, while others lean towards eCommerce.
The simplest way among the three is, of course, eCommerce. However, eCommerce is not as simple as you think; it still varies on the kind of business model that you’ll adopt.
There are different kinds of eCommerce business models, including B2B, B2C, C2C, C2B, Subscription, Private labeling, Wholesaling, and Dropshipping. In this blog, we’ll talk about the dropshipping business model.
Dropshipping defined
Dropshipping is as simple as finding a supplier or manufacturer that will give you a wholesale discount in exchange for selling their product for them since these companies typically don’t invest much in advertising and marketing. Essentially, what happens is when a customer sends an order to your store, you only need to forward it to your supplier, and they will ship the product directly to your customer – so you don’t have to maintain a warehouse or fulfill any orders yourself. More and more entrepreneurs are now jumping into the dropshipping business primarily because it has a very low upfront investment requirement.
Suppose you want to own and manage your own store without having to worry about the issues that go with product development, packaging, inventory, and fulfillment. In that case, dropshipping is a perfect choice.
There’s a common misconception about dropshipping being mixed up with price arbitrage”. The latter is the practice of searching for a trending product online on various eCommerce websites like Amazon, Walmart, Home Depot, AliExpress, or eBay and listing it for sale in a different marketplace with a marked up price.
This form of dropshipping has no “authorized dealer agreement,” so if you get caught selling certain products without their permission, then they could force you to take down your listing. On the contrary, drop shippers have an authorized selling agreement with their suppliers or manufacturers, thus, giving you full control of your business offerings.
Difference Between Dropshipping and the High-Ticket Dropshipping
High-ticket dropshipping is all about selling high-valued items; on average, these are the products that cost $1000 or more. If you want a business that yields better margins and faster returns, this is the kind of eCommerce business you should dive into. Most entrepreneurs settle with low-cost dropshipping items.
The problem with that business model is that it will only work if you prefer a steady stream of revenue but has limited control over margins and yields minimal profits. On the contrary, high-ticket dropshipping is the exact opposite; with this kind of model, you enjoy full control of your pricing, and you can generate more significant profits.
In terms of product comparison, traditional dropshipping sells products like hotcakes since these are cheaply priced goods. With high-ticket drop shipping, you get a steady but slower sales pace since these are high-value items like jewelry, gadgets, etc. The catch is, you get way bigger profits with high-ticket drop shipping without exerting too much effort since you only have a handful of customers – especially if you have a particular niche.
Another significant point is that high-ticket drop shipping businesses have less competition, so you will enjoy maximum brand visibility, so long as you pair it with the right marketing strategy. Don’t worry; high-ticket dropshipping is not limited to jewelry and gadgets; there are tons of other products out there waiting to be discovered. For starters, check out eCommerce Paradise’s list of the best products for high-ticket drop shipping.
Why Go For High-Ticket Dropshipping?
There are so many benefits to launching a high-ticket drop shipping business. Of course, it’s no doubt that this business model is the best option for beginners and aspiring entrepreneurs who are always on the go. But to convince you further, these are our top reasons why you should try high-ticket drop shipping.
Minimal Upfront Investment Requirement
This is probably the best thing about dropshipping. With this business model, you don’t need tons of money to start running your business compared to a physical store. eCommerce only requires minimal setup, especially for starters, so you can start selling in just a few days!
No Need for Product Development
Since you’re capitalizing on your supplier’s products, the burden of continually creating and developing new products does not lie within your responsibilities since you can be sure that the supplier is handling that already. This is precisely why it’s essential to choose a supplier that does not only offer high-quality products and service but is also proactive in terms of keeping up with market trends.
The key to successful dropshipping is finding the best product to sell and the most reliable supplier to work with. When you have these two, your business will surely skyrocket. Here are exclusive tips on how you can spot the perfect dropship supplier.
Low Overhead Expenses and Location Independence
Since it’s dropshipping, you don’t need to set up your warehouse or hire as many staff as a physical store. In drop shipping, you can be up and running even if you can only afford to hire a single staff, to begin with.
Plus, the best thing about high-ticket dropshipping is that you can manage your store from anywhere in the world and still generate massive sales.
Overall, High ticket drop shipping is great because it’s a fulfillment method to run and build an eCommerce store and scale indefinitely as much as you want to. There are tons of high-ticket eCommerce stores generating hundreds of thousands of dollars in sales per month, and it’s truly incredible as to what level you can scale these stores. Now, if you want to get started in building your own high-ticket dropshipping business, here’s an excellent high-ticket dropshipping guide for beginners.