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November 9, 2022

What is Drop Shipping with High Ticket Products? with Ben Knegendorf of Dropship Breakthru

What is Drop Shipping?

Drop shipping is when a store doesn’t keep inventory and instead buys from a supplier and then has the supplier ship directly to the customer.

This is a fulfillment method for online retailers. Drop shipping gives you a chance to sell products that you don’t have in your possession, which means you can offer more products for your customers. There are many benefits of drop shipping.

Another simple but easily-missed point is that because it demands no cash tied up in inventory, it is much more scalable if it takes off. All ecommerce operators reach a  a point where growing their business means expanding the catalogue a lot. Private label sellers often find they need to find an extra $100-500,000 in funding. Many simply can’t do it; others have to enter the risk of very large loans or investing their life savings. The high-ticket dropshipping model just bypasses this issue. 

Drop Shipping Explained

Drop shipping is a method of selling goods without having to keep them in stock. In this case, the supplier ships the goods directly to the customer. The retailer receives payment from their customers and pays the supplier afterwards. This allows you to have a website or physical storefront without having to purchase product ahead of time and risk tying up your capital in inventory that might not sell.

Again though there are now ready off-the-shelf solutions, so technical know-how is no longer much of a barrier. 

High-Ticket Drop Shipping

High-ticket drop shipping is a business model that focuses on selling high-ticket items. The reason this type of drop shipping works so well is because high-ticket items have much higher profit margins, which means you can make more money with less sales.

High-ticket items also require far fewer customers to generate the same revenue as low-margin products, which makes it easier for your company to grow . You’ll find yourself with fewer customers overall because each one will be spending a lot more money than someone who buys a lower priced item. That means you have far fewer headaches when it comes time to manage your customer base!

How Does Drop Shipping Work?

Drop shipping works like this: You find a product you want to sell, and then you make an agreement with the supplier that lets you sell it without having to buy the inventory first.

The arrangement is simple—you tell your drop shipper what products you want to sell, and they take care of everything else. They will handle orders, ship them out directly to customers, collect payment from customers on your behalf, and then ship those items directly back to you after they’ve been sold (this is called “fulfillment”). And because the suppliers have already taken care of the cost of buying the inventory for themselves (which is usually pretty high), there are usually no setup fees involved in starting a drop shipping business!

How to Start Your Dropshipping Business!

Now that you know what drop shipping is and how it works, let’s get started with setting up your own dropshipping store.

  • First, register a domain. Ben uses Namecheap but anywhere similar will do. $12 a year
  • Get a google workspace and an email address for about $12 a month. 
  • Get some professional but simple branding work done. You need a logo and a simple home page with sliders or well laid-out images. Cost around $100.
  • Set up Shopify. This will be your online store platform where all of your products will be stored and sold from. That costs around $29 a month. 
  • Next, choose a niche product that you want to sell in order to start building your customer base. You can make the most money if you find something that no one else has already started selling yet! It’s best if this niche product is high ticket (at least $50) because it means customers are more likely to buy from you instead of going directly through Amazon/Ebay or whatever other site they’re familiar with buying things on already.
  • Once you’ve chosen the products, you’ll be setting up google Ads. 

How to Find Winning Products to Sell?

The goal of this article is to help you find winning products that can be sold on Amazon.

The first step is to choose a human first. What do I mean by that? Well, instead of thinking about your business as the product, think about what your customers need and want. This will help you create a better brand identity and make sure that your products are relevant to their needs.

When it comes time to choose what type of product/service/business model you want to sell, think about yourself as the target customer! Why would someone like you buy from us? Are there any gaps in our industry that need filling? If so, how could we fill them?

Once you’ve figured out what type of product/service/business model you want to sell, it’s time to do some research! This means talking to people who have already done what you want to do and reading up on the industry.

What Sells the Best with Drop Shipping?

The best items to sell through drop shipping are high-ticket items that are in high demand. You’ll also want to focus on items that are easy to ship and easy to sell.

You can make sales much more quickly by selling high-value products with an existing strong brand, as well as popular accessories or add-ons for those popular brands or categories of products.

The best drop ship products are items that are not only expensive but also have a high profit margin. You can increase your profit by selling more expensive items, as well as offering free shipping or other added benefits. This will help you to make more money with each sale, even if you’re not making much on each individual item.

How to Approach Suppliers

It’s important to remember that all companies are not created equal. There are some that are very easy to work with and others that can be a nightmare. It’s important to know how to approach them, as well as how they operate.

  • Expect a little fear:  When you call up a supplier, be prepared for them to ask you your name and where you’re calling from (sometimes even why). Don’t take this personally; most suppliers will be hesitant about talking business with someone who doesn’t have an established online presence or reputation yet.
  • Get over cold calls: If possible, try reaching out through email first before calling anyone on the phone so that when it comes time for actually speaking with someone in person or via video chat, they’re more willing to talk business because they already know who you are.
  • Remember that they need YOU! It’s easy for us startup owners  to feel we are bugging people. But the truth is, they need committed and organised people to help sell their products online. No reason you can’t be one of them. 

Set Up Your Catalogue on Shopify

You’ll need to set up a Shopify store, which is the easiest way to do this. You can also use another website building platform like WordPress, but it’s not quite as user-friendly for dropshipping.

Once you have your store set up, you’ll be able to start creating product detail pages and accepting payments from customers.

Once you’ve got that, you’ll need to create the product detail pages from the suppliers’ catalogue. 

Remember Marketing Funnel Basics

You need to think in terms of a funnel from least to most engaged shoppers.

This is critical for using your money to get a return on ad spend (ROAS) and healthy cashflow. It also helps you understand how customers are finding your website, and where they fall within the buying process.

Finally, bottom of the funnels refers specifically those interested in purchasing something; these buyer keywords will lead directly into your sales funnel when paired with an ad campaign’s landing page (more on that later). These keywords are usually very specific, often including an exact product model eg “Sunray infrared sauna model 72 in black” etc. etc. They are often called “long-tail keywords” since they include several words. 

Run Google Ads for Targeted Traffic

When it comes to Google Ads, you can’t hand over control of your campaigns to the Performance Max algorithm. It doesn’t work well for high-ticket items and will often leave you with a low quality score that prevents you from getting any traffic at all.

Instead, start with bottom-of-the funnel keywords like “drop shipping suppliers” or “dropship distributors.” These are inexpensive keyword phrases that convert well and help establish trust between your brand and potential customers.

As you gain more experience targeting long tail keywords (and honing in on what they mean), start adding some mid-funnel keywords like “how to dropship products?” or “what is drop shipping?” These are words people search when they want more information before making decisions about purchasing something online (aka buyer intent).

Drop Shipping is a Very Simple Way of Starting an eCommerce Business with No Inventory.

Drop shipping is the easiest and most cost effective way to start an ecommerce business. No need to purchase inventory upfront, sell products without storing them or shipping them, and deal with customer service! This can be a great revenue stream for you as an online seller.


Drop shipping is a very lucrative business model that allows you to sell products without the need for holding inventory. Drop shipping is also great for people who have no idea how to source products from China or another overseas location.

Next steps

To get more free guidance from Ben Knegendorf, just check out the podcast “Drop Ship Podcast”

Start at the beginning! It’s in sequence!

Dropship Course 

If you want more structured guidance or to save yourself wasted money, stress and time, we’d highly recommend Ben’s course – just go to: www.amazingfba.com/dropship  

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