Dropshipping is one of the biggest e-commerce businesses that helps a lot of people make money with little to no investment through products arbitrage. The fast-evolving technology is a boon as it allows the users to employ new ways in which they can conduct their businesses.
But, it also obliviates the old ones the moment when it comes up with new ones. However, dropshipping is still worth it for those who want to make a decent income. Speaking of dropshipping, whoever wants to pursue it, needs to educate themselves of the viable dropshipping methods, stores that can still flourish under the banner of dropshipping and marketing platforms. Let’s dive into the details of dropshipping that can help you build a sustainable business online.
Types of dropshipping
For anyone who wants to jumpstart their dropshipping business, it is important to know the existing strategies, to narrow down on the value of products they want to work with. Dropshipping is essentially two types.
- Low-ticket dropshipping
- High-ticket dropshipping
While the low-ticket dropshipping deals with the selling of products of lesser value utilising a high price margin the high-ticket dropshipping deals with selling products that are expensive utilising a low-price margin. However, dropshipping has a lot of other details that need to be paid attention to witness lucrative results.
Low-ticket dropshipping needs lesser efforts from the business owner side as it focuses only on the bare minimum to start an online business like
- Creation of a Shopify store
- adding products to the website
- Advertising them on a social media platform by running Facebook ads to drive traffic to their website.
- Although this model of operating an online business through dropshipping might appear simple, it indeed requires a heavy investment upfront towards testing the paid advertising on potential social media platforms like Facebook.
- Low-ticket dropshipping is also less likely to bring warm leads to your business.
The high-ticket business model of dropshipping has more potential to be profitable in the long run. The business model involves
- Creation of Shopify store and partnering with brands that are well established and distributors.
- Subsequently adding the products and advertising them using Google Ads.
- Optimising your website as per the keywords and phrases that lead to more conversions.
- Google ads work better than FB ads for an online store because it involves optimising your website for those customers who are searching actively.
Reasons Why High Ticket Dropshipping Works Way Better Than A Low-ticket Dropshipping
- Unlike other business models high-ticket dropshipping targets those customers with high buying intent instead of interrupting people on social media who have no intention to buy.
- High-ticket biz owners usually deal with real businesses and popular brands with a solid supply chain.
- Due to the longevity of the google ads compared to the social media ads and a shorter testing phase, these search campaigns yield better results in the long run.
- The products of such well optimised businesses sell on high-quality marketplaces online.
Leveraging High-ticket To Its Fullest To Drive More Sales
No matter how easy it is to get started with dropshipping there is always some form of investment involved to drive traffic to your website. This investment goes into Facebook ads, email marketing or another form of advertising. People spend hours on end to drive traffic to their website only to realise that all the traffic doesn’t necessarily convert into potential customers. On the other hand, investing in high-ticket items is worthwhile since a single sale can result in a huge profit margin. There is a stark difference in the profit margins between a low-ticket sale and a high-ticket one.
- Understand that the customer acquisition process of a low-ticket and a high-ticket business model is pretty much the same. Therefore, putting your efforts in the right place can result in good profits.
- Set reasonable expectations, you might not be making your first thousand dollars in the first month.
- However, if you’re consistent the right products will come along the way.
- The amount of money one can make invariably depends on the number of good suppliers your business can secure. The time when you establish a secure, long-lasting relationship with a good supplier is the time when you start making 5 figures consistently.
- Even though you cannot find a supplier whose goods have a huge profit margin, having a bunch of smaller suppliers can also give good results collectively.
- The time you invest in acquiring good suppliers is as important as the time you put in your customer acquisition.
Expenses As A Dropshipper
Since the operational costs are low for a dropshipping business, the only investment they have is the money that goes into google advertising. However, if you’re thinking of scaling up your business and looking for long-term results, here are the few areas where you need to invest in.
- Invest in having good technical support and premium themes as it can enhance the setup and gives you the freedom from getting bogged down by the technical aspects of your business.
- Get a contact number instead of your number to keep things professional.
- Google ads that you can start with 20$ a day and then scale it strategically.
Working towards a 5- Figure In Dropshipping
One can make anywhere around $1000- $5000 a month when the efforts are consistent. At this point, your business would also require you to outsource and create profitable systems so that you can focus more on acquiring high-quality suppliers, testing and running better ads. The two areas in your business that needs outsourcing would be
Creation of a comprehensive product page.
When you’re starting the suppliers however remain few and it makes the process of adding products from different suppliers to your page a rather easy task. However, it is wise to outsource the tedious task of adding products to your website when you’re scaling up at a rapid rate with a lot of suppliers.
Being Available To Your Customers Through Customer Service.
As your business grows so do the inquiries from your customers. These inquiries gradually add up and take an enormous amount of time from your day as you scale up. You can hire people who are capable of handling the bulk talk.
To make money dropshipping, we need to understand how dropshipping works. Refer to this article on Zeen to get an idea.