Is dropshipping from AliExpress profitable for 2020? The short and quick answer to that is “yes”. Since 2019, it is expected that drop shipping will remain to be profitable and it is a good idea to take advantage of it for your own business. Thus, it can be quite easy for you to obtain high profits.
Instead of dropshipping low-cost items from Chinese suppliers that you find through websites like AliExpress, you should instead focus on dropshipping expensive high ticket brand items from drop shippers that are based in the USA.
A very common example given is that you could open a Furniture Shopify store selling items, like couches, tables and chairs. Your items will be priced between hundreds to thousands of dollars.
This trend consists of blindly picking more expensive items hoping that large profit margins will make expensive products worthwhile to sell. Although some persons might not agree with this but it is still debate-able.
A high-ticket Brand product is one that’s priced on the high end ($1,000+). Items like sofas, beds and wardrobes fall into this realm. Stores like a Louis Vuitton, Ikea or even car showrooms also fall under the hat of high-ticket brands.
Obviously, these items are expensive so you can make thousands by just selling a few a day. A high-ticket dropshipping store is basically combining a store and U.S based suppliers to fulfill the orders for you.
When it comes to selecting the best products for a dropshipping store, we commonly rely on the most common basic recommendation: pick the cheapest items of the highest quality possible, and set a solid price markup.
This way, both store owners and their customers get satisfied with every purchase: the buyers are happy because they pay a moderate price for their orders, and store owners are happy because even this moderate price provides them with some earnings.
But what happens when a store owner switches to more expensive products? It’s not a rare thing – typically, entrepreneurs have 3 reasons to up their game:
- Higher Profit : Selling one expensive item, you get the revenue equal to the profit that you would receive from selling 5-10 affordable products. Naturally, this idea seems exciting to business owners who want to earn a considerable sum of money in no time at all.
- Challenge : If you’ve been involved in dropshipping for a long time already, naturally, you will get bored eventually. For some entrepreneurs, selling the same inexpensive and undemanding items over and over again doesn’t seem exciting any more, and they start making more ambitious business decisions.But does the strategy of selling luxury products really work? i guess we’ll just have to find out from big time entrepreneurs.
- Broad Product Offering : AliExpress is full of wonders. Even though it is known worldwide as the platform offering the most competitively priced items, it never ceases to amaze a curious researcher. Each product category here features dozens of quite expensive items, and even if you rule out the most extravagant options, you will still have plenty of luxurious items to choose from.
How to sell High end brands on Ali express in a Drop shipping store Real – life Experiences
One of Kingpin’s stores is dedicated to higher class products that cost at least $10 each, and he mostly combines several items into a single offer in order to sell them in a small bulk – if the total order cost exceeds $100 (which, supposedly, happens often enough), he offers free shipping as the buyers’ bonus.
With this rather new store (it was launched in the middle of February 2017), Kingpin targets retail shopkeepers across the USA and Australia. The business shows pretty fine results: in the first month of the store operation, he got $28,000 in sales and 14,5k in profits.
Another interesting example of a successful dropshipping store selling expensive items can be found on AliDropship forum.
Here, we can read the story of the entrepreneur nicknamed Chokomelks: she sells high-end dropshipping products with an average price exceeding $100, and generously shares her store address with the forum readers.
In several weeks of the store running, she managed to achieve 7 sales with the total cost of $655,41, and got satisfied with the revenues: for example, in one particular case she got $40,5 in profit for one sold product only! She increased the initial $112,5 AliExpress price up to $153, and the buyers turned out to be ready to pay this price.
How to sell expensive high end brand products in an online store with the best results possible?
Taking into account everything we have previously mentioned, we can give the following recommendations to the dropshipping store owners who consider selling less affordable items:
Make sure you know the basics
Before you dive deep into a high-profile luxury business, make sure you perfectly know how to manage your store correctly in terms of technical procedures and routine daily operations.
Don’t change your direction immediately
If you’re already bored with cheap generic products, don’t get rid of all of them at once. It would be a better idea to add several higher priced products to your store offer now and then in order to research the impact of the changes.
Learn your buyers
It’s vital to understand how exactly your customers react on different price levels. When you understand the preferences and queries of your target audience, you can make a well-reasoned decision on selling more expensive items.
Don’t look at the price only
A high price shouldn’t be the only parameter to consider while importing items from AliExpress: read this article to learn what kinds of items will be the best addition to your store offer.
Make sure the visitors trust your store
When it comes to buying something expensive online, people, quite naturally, are not always sure whether it’s reasonable to place a costly order in an unfamiliar store.
In this guide, we list the issues that might scare your visitors away, and explain what you should do to fix all these troubles. Also, you will find it useful to read this article on social proof: here, you will learn how to increase your conversions with the help of positive experience of your previous customers and certifying organisations.
Make sure you have a financial backup
In order to buy an expensive item on AliExpress and arrange its delivery to your buyer, you need to already have the sufficient amount of money.
Plus, some savings are also required to cover the expenses of making a refund or a product return if necessary. Usually, at the beginning of their dropshipping journeys, the entrepreneurs can’t afford such costly operations.
Make sure you know how to work on branding
If you’re building a high-profile business, it is vital to convince your buyers you’re not asking money for nothing – that’s exactly what Chokomelks tells in her story.
All your marketing decisions and promotional activities should be planned and implemented in a very careful way, and even though they won’t necessarily require lots of spending, they will certainly require some profound Internet marketing knowledge.
Upgrade your customer service
If you run a luxury store, your buyers definitely expect you to be extremely professional and polite in your communications. Read this article to learn how to deal even with the toughest clients in a way that supports your good reputation.
There are a lot more skills required and there is a higher risk involved in starting a high ticket dropshipping Store.
Yeah, on the surface it sounds like it should be way easier to sell just one item and make $600 versus selling 200 smaller items, but the real truth is that selling High ticket items requires far more skill, far more experience and far more money to get started.
Before you embark on this journey you’ve got to get a mentor as the right guide will propel you well enough in the right direction to achieve success in this venture.
Here’re some of the most profitable dropshipping products that you can sell through social media and search engine marketing.
Neck Phone Holder
Magnetic Charging Cable
Pocket Language Translators
Posture Correction Belts
Waterproof Floating Phone and Tablet Cases