Guide to High Ticket Dropshipping on Shopify

Posted by Benjamin Meskin on Jul 22, 2021 9:00:00 AM
Benjamin Meskin

Desktop computer with Shopify


Dropshipping Defined

Dropshipping allows e-commerce businesses to virtually stock the products they sell without ever handling them. A dropshipping e-commerce store acts as the middleman, purchasing dropshipping products from a third party that ships them directly to the customer. 

On Shopify, dropshipping is a simple process that has revolutionized the world of e-commerce. 


What Is High Ticket Dropshipping?

High ticket dropshipping involves selling more expensive items than are sold in regular dropshipping stores, allowing e-commerce businesses to make a bigger profit. The math behind this is simple. A 30% profit on an item that costs $10 is $3.00, but if the item costs $1,000, the profit will be $300. So, you would have to sell many cheaper products to start making decent money, but make a couple of high ticket dropshipping sales, and the money starts adding up.


Graphic of the stages of dropshipping from purchase to delivery


The Advantages of High Ticket Dropshipping


Dropshipping saves money

Dropshipping saves on transport and warehousing costs, with products making one journey—from the dropshipping suppliers to the customers—rather than the traditional two. In addition, dropshipping also saves e-commerce business owners money on office and retail space.


Dropshipping is environmentally sound

Due to the reduction in transportation and warehousing, dropshipping is better for the environment. 


Dropshipping allows for flexibility

An online store can be run on a laptop from anywhere in the world that has Internet access, allowing business owners great flexibility in where they want to work.


Dropshipping reduces financial risk

Dropshipping allows independent sellers to test the market by offering new products without the risk of first buying them from the manufacturer.


Dropshipping promotes inclusivity

Dropshipping’s reduced need for startup capital makes entrepreneurship available to people without substantial capital reserves, opening it up to segments of the population that were previously excluded. This advantage is amplified in high ticket dropshipping. If sellers had to physically stock $1000 items, that would mean an initial investment that would be prohibitively large for all but the wealthiest traders.


High ticket dropshipping makes tracking easy

High ticket dropshipping companies generally make more money through fewer sales. This means they have fewer orders to keep track of, leaving them more time for other things to grow the business.


High ticket dropshipping leaves time for customer service

Fewer customers also mean high ticket dropshipping entrepreneurs have the time to give higher-paying customers the attention they expect. 


Two business owners looking at their online store


The Disadvantages of High Ticket Dropshipping

While there are many advantages to owning a dropshipping business, high ticket dropshipping might not be the right choice for everyone. 

The customers high ticket dropshipping companies need to attract tend to put a lot of thought into what they buy, so a high ticket dropshipping company must be able to stand out from the crowd. Novices to e-commerce might not have the experience in advertising, branding, creating sales funnels, and other specialized areas necessary to achieve this. 

Although still considerably cheaper than starting a traditional sales business, the necessity of a higher quality of presentation and advertising in a high ticket dropshipping store can also make it more expensive than low ticket dropshipping. The services of professional photographers and copywriters must also be factored into high ticket startup costs.

Careful planning is essential and can help e-commerce store owners reduce the risks involved with dropshipping.


Woman putting together a digital marketing proposal on her laptop


How to Dropship


Step One: Select your store type

Decide what kind of e-commerce store you want to run and how much time you have to run it. Think hard about this. Don’t commit to something you don’t have time for. Do some research. Ideally, find a gap in the market that your store fills. It’s much harder to get your business off the ground when there are dozens more like it in the marketplace. 


Step Two: Consider your finances

Set up a company bank account and perhaps a business credit card. See whether the state you live in requires you to collect sales tax. If so, you will need to contact your state’s department of commerce to learn the details. 


Step Three: Make your company official

Decide what kind of company is best for what you have in mind. The three main choices are Sole Proprietorship, Limited Liability Company (LLC), and C Corporation. Many cities and towns require small businesses to be licensed. Your local chamber of commerce will be able to help you with this. 


Step Four: Build an online store on an e-commerce platform

This is where products are showcased, orders taken, and payments received. Shopify dropshipping simplifies this by supplying tools to help businesses with everything from suggesting domain names and logo designs to offering various beautiful themes and design options at the click of a button. 


Step Five: Find suppliers and stock your e-commerce site

Shopify dropshipping makes this easy via a plug-and-play app connecting supplier Oberlo to the online store. Displaying products on the e-commerce site is also just a matter of clicking a button, although sellers of high ticket items will probably need to take a more hands-on approach to marketing and branding. 


Step Six: Market your products

For high ticket items, businesses may choose to employ professionals to help. Whatever marketing a company opts for, it can include paid ads on Facebook and Google, influencer marketing on Instagram and TikTok, or content marketing like a blog, YouTube channel, and email marketing. Many things can maximize the impact of an e-commerce store, and they are constantly evolving. 


Step Seven: Sell your products

Now it’s time to celebrate! Setting up your online store and getting your business started is a huge deal. But we do have one last tip for you - Insuring your goods while in transit is essential. Big companies like UPS and the USPS provide differing levels of insurance, but they may not offer the features or coverage for your needs. Cabrella can be integrated with your Shopify dropshipping site and will provide more individualized service at a better price. 


man calculating business costs


Dropshipping on Shopify

Shopify makes e-commerce easy by integrating all of the services business owners need on one easy-to-use platform. 

After creating an online store, dropshipping business owners need to stock their shelves virtually. Shopify provides apps that make this easy and help their e-commerce entrepreneurs connect to suppliers in North America and elsewhere around the globe. 

As one of the most popular apps, Oberlo allows business owners to add products to their online store at the click of a button. When customers purchase a product, Oberlo takes care of the packing and shipping via AliExpress, leaving the dropshipping business owner with plenty of time to promote the store and its products. 

Insuring goods while they are in transit is an important part of e-commerce businesses, and Cabrella offers the best and most reliable third-party insurance available. Integrating Cabrella shipping insurance software into your Shopify dropshipping store will remove the stress of this aspect of the business transaction and reduce your Shopify insurance rates, thus maximizing your profits.


e-commerce story on a computer surrounded by shopping bags


Cabrella’s Shipping Insurance Software Integrates Seamlessly with Shopify

Insuring all of your e-commerce shipments has never been easier. When you ship through Shopify, you can add Cabrella insurance in one simple step. Our API integration ensures a smooth user experience combined with the customer’s most relevant and up-to-date information. 


Some of the top features include: 

  • Automated Notifications to alert you of risks from region to region in real-time. 
  • Packaging instructions for high-value items like jewelry, technology, and art. 
  • Automatic logging of transactions, including if the package is declared, what carrier was used, and delivery status. 
  • Auto populated claim forms. You’re always one quick click away from filing and tracking the claims process through the software. 
  • Monitor and record loss ratios. 
  • Provides invoices and credits right at your fingertips. 

Tablet with a shipping app


Contact Us

If you have an e-commerce Shopify store, you need to partner with a great insurance company. Cabrella offers reliable and competitively priced third-party domestic and international shipping insurance. We aim to build long-term relationships with customers, and our outstanding customer retention rates speak to the quality of our services. 

Contact us today at (844) 422-2735, check out our eCommerce Shipping Solutions page, or get a free quote here

Tags: #shippingsoftware, dropshipping, shopify

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