๐ฐMaster Thread on High Ticket Ecom ๐
RT's are much appreciated ๐ค let's get this wifi bread
RT's are much appreciated ๐ค let's get this wifi bread
1. High Ticket vs. Traditional Dropshipping
First off, both models work. Anyone who tells you one or the other is better is a liar. I've done both, each has their respective pros and cons.
Now let's get into the specifics of high ticket since it's not talked about as much โฌ๏ธ
First off, both models work. Anyone who tells you one or the other is better is a liar. I've done both, each has their respective pros and cons.
Now let's get into the specifics of high ticket since it's not talked about as much โฌ๏ธ
High ticket is similar to traditional dropshipping in the actual model - customers purchase from you and your supplier ships the product directly from their warehouse to the customer.
The main differences between high ticket and low ticket are two things:
Price and...
The main differences between high ticket and low ticket are two things:
Price and...
Logistics.
With traditional dropshipping, you're usually finding a product on aliexpress and having your supplier ship it to the customer from China.
This means longer shipping times and in today's market people are more impatient than ever.
The other possible drawback is...
With traditional dropshipping, you're usually finding a product on aliexpress and having your supplier ship it to the customer from China.
This means longer shipping times and in today's market people are more impatient than ever.
The other possible drawback is...
Product quality.
Since these are usually chinese goods, quality often suffers, leading to unhappy customers and refunds/chargebacks.
That being said, I do like low ticket for the following reasons:
- Control over margins
- Ability use direct response marketing
And...
Since these are usually chinese goods, quality often suffers, leading to unhappy customers and refunds/chargebacks.
That being said, I do like low ticket for the following reasons:
- Control over margins
- Ability use direct response marketing
And...
- Scalability
These are the biggest advantages to low ticket in my opinion.
If you are fortunate enough to find a winning product, you can blue ocean it and create a real brand, which has massive ROI.
But you know all about low ticket, so now let's get into high ticket:
These are the biggest advantages to low ticket in my opinion.
If you are fortunate enough to find a winning product, you can blue ocean it and create a real brand, which has massive ROI.
But you know all about low ticket, so now let's get into high ticket:
High ticket is different in the sense that you aren't looking for winning products, rather you're looking for winning SUPPLIERS
Unlike low ticket, we aren't shipping products from China.
Instead, we only worked with US-based brands.
The beauty of this comes down to 2 things:
Unlike low ticket, we aren't shipping products from China.
Instead, we only worked with US-based brands.
The beauty of this comes down to 2 things:
1. Faster shipping times (usually)
Right now there are major supply chain issues but the vast majority of customers will still choose to wait MONTHS for their product - because if it's on backorder for one retailer, it's on backorder for all of them
And #2 (the big one) โฌ๏ธ
Right now there are major supply chain issues but the vast majority of customers will still choose to wait MONTHS for their product - because if it's on backorder for one retailer, it's on backorder for all of them
And #2 (the big one) โฌ๏ธ
2. These are already established brands - meaning customers are already searching for and actively looking to purchase them
There is no need to use copywriting or DR tactics to try to convince them to buy your product
It's mostly all warm traffic
To get these customers, we..
There is no need to use copywriting or DR tactics to try to convince them to buy your product
It's mostly all warm traffic
To get these customers, we..
Use Google Ads (low ticket traditionally uses Facebook Ads)
We set it up to have 2 campaigns
#1 is a "Branded" campaign
This is for people who are searching the actual brand name on Google Shopping (warmer traffic)
Campaign #2 is a "Generic Campaign"
This campaign is...
We set it up to have 2 campaigns
#1 is a "Branded" campaign
This is for people who are searching the actual brand name on Google Shopping (warmer traffic)
Campaign #2 is a "Generic Campaign"
This campaign is...
For people who are searching more generic keywords
For example:
Someone who searches "John Deere lawnmower" would be funneled into the branded campaign
Someone who searches "lawnmower" would be funneled into the generic campaign
We funnel them by using negative keywords
For example:
Someone who searches "John Deere lawnmower" would be funneled into the branded campaign
Someone who searches "lawnmower" would be funneled into the generic campaign
We funnel them by using negative keywords
This makes the advertising aspect very simple and straightforward
No testing copy, creatives, etc.
The other nice thing is that you're processing and handling far fewer orders than low ticket
You can do $1k+ days with just one order
Wild.
But there are some drawbacks โฌ๏ธ
No testing copy, creatives, etc.
The other nice thing is that you're processing and handling far fewer orders than low ticket
You can do $1k+ days with just one order
Wild.
But there are some drawbacks โฌ๏ธ
Ideally, your supplier will have a MAP policy
This means the Minimum Advertising Price
Retailers can't price the product below this price floor
You can go above it as much as you want, but to compete you'll want to price it at MAP
For suppliers who don't have MAP...
This means the Minimum Advertising Price
Retailers can't price the product below this price floor
You can go above it as much as you want, but to compete you'll want to price it at MAP
For suppliers who don't have MAP...
It's a price raise to the bottom, killing your profits
Now, for the margins:
Finding a "winning" supplier entails having good wholesale margins (usually 30-40% before shipping)
If you can secure 40%+ margins that's a great sign
We usually have to cover the shipping cost, so..
Now, for the margins:
Finding a "winning" supplier entails having good wholesale margins (usually 30-40% before shipping)
If you can secure 40%+ margins that's a great sign
We usually have to cover the shipping cost, so..
Having fat margins is crucial, especially as cost continue to rise
You can negotiate margins with your supplier, but it's not like low ticket where you can just set prices to whatever you want and use offer creation/bundles to increase AOV
Speaking of winning suppliers...
You can negotiate margins with your supplier, but it's not like low ticket where you can just set prices to whatever you want and use offer creation/bundles to increase AOV
Speaking of winning suppliers...
There are 3 aspects that make up a winning supplier:
1. Low Competition (less than 10 retailers, ideally under 5)
2. MAP Policy (to prevent price wars)
3. High Margins (usually products over $1,000)
Once you get a supplier that meets all 3 criteria, it's time to run ads to test
1. Low Competition (less than 10 retailers, ideally under 5)
2. MAP Policy (to prevent price wars)
3. High Margins (usually products over $1,000)
Once you get a supplier that meets all 3 criteria, it's time to run ads to test
Now by this point I know what you're thinking:
"Okay this sounds cool, but how do I find these suppliers?"
It's pretty straightforward:
With this business model, your store is acting as a retailer.
Think of Wayfair for example. They are a mostly dropshipping business...
"Okay this sounds cool, but how do I find these suppliers?"
It's pretty straightforward:
With this business model, your store is acting as a retailer.
Think of Wayfair for example. They are a mostly dropshipping business...
They sell hundreds of brands and 90% of them ship from their own warehouse.
They are the OG of high ticket dropshipping
So how do we find these suppliers?
The first place we look is...Wayfair
Browse through their categories and select one.
Then...
They are the OG of high ticket dropshipping
So how do we find these suppliers?
The first place we look is...Wayfair
Browse through their categories and select one.
Then...
Filter by price ($1,000+)
Now scroll through the list of brands
Start searching these brands on Google and go to Google Shopping
If you see other retailers selling them, chances are it's a potential supplier
If there's less than 5 retailers, you may have hit a goldmine...
Now scroll through the list of brands
Start searching these brands on Google and go to Google Shopping
If you see other retailers selling them, chances are it's a potential supplier
If there's less than 5 retailers, you may have hit a goldmine...
However the only way to know is to run ads and test. Sometimes you'll get sales before you even run ads though. That's usually a REAL winner
So, you've found a supplier. Now how do you close them?
Reach out to them via phone or email (phone is quicker and usually better)
Say..
So, you've found a supplier. Now how do you close them?
Reach out to them via phone or email (phone is quicker and usually better)
Say..
That you're a retailer looking to add a new brand to your website (give them your website)
They'll usually ask some questions and once you're established it's pretty easy
If they agree to bring you on, they'll send over documents to get started
To do this, you need...
They'll usually ask some questions and once you're established it's pretty easy
If they agree to bring you on, they'll send over documents to get started
To do this, you need...
An LLC and a resale certificate.
Might sound daunting at first but it's super easy.
You literally just sign up online and pay for both, done.
Once you have those, you can begin closing suppliers.
The goal of this business is to create a monster store with multiple winners โฌ๏ธ
Might sound daunting at first but it's super easy.
You literally just sign up online and pay for both, done.
Once you have those, you can begin closing suppliers.
The goal of this business is to create a monster store with multiple winners โฌ๏ธ
Then exit within a few years.
Once you find those winning suppliers, you don't need to do a whole lot extra to bring in sales.
There will ideally be a consistent stream of sales
You're creating an asset
One more thing to note:
Since you're dealing with high end goods...
Once you find those winning suppliers, you don't need to do a whole lot extra to bring in sales.
There will ideally be a consistent stream of sales
You're creating an asset
One more thing to note:
Since you're dealing with high end goods...
Make sure you focus on customer service ABOVE ALL
I haven't lost a single chargeback after 150+ orders because my VA is amazing and we take care of our customers
That being said, you'd be amazed at how much more pleasant people ordering $$$$ goods are vs. low ticket customers
I haven't lost a single chargeback after 150+ orders because my VA is amazing and we take care of our customers
That being said, you'd be amazed at how much more pleasant people ordering $$$$ goods are vs. low ticket customers
๐ฐMaster Thread on High Ticket Ecom
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