eCommerce Lifestyle
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Dropshipping $10,000 Products

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Anton shares the advice he gave to a Drop Ship Lifestyle member who is dropshipping extremely high-ticket products and looking to increase his conversions.

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Transcript

Hello, everybody. Anton Kraly here from eCommerceLifestyle.com. And welcome back to the podcast. If you're new here, just know the show comes out twice a week. We have brand new episodes every single Monday and Thursday morning, and they are all designed to help e-commerce store owners to increase their revenue, automate their operations and become the authority in their niche. So if you're in e-commerce or thinking about getting started and you're not subscribed yet, click the button totally free and you'll get two brand new episodes a week just like this one. So today's episode is about drop shipping $10,000 products. Now, the reason I wanted to talk about this today is because I was just having a conversation with a student of Drop Ship Lifestyle who has been up and running with this store for a few months now. He is getting traffic. He has traffic set up the right way, at least from a high level view, from what I could see, not being inside the account from what he shared, everything looks good as far as the setup, but his conversion rate is not where we like to see it.

So when it comes to targeted traffic sources like Google shopping ads with the alpha beta structure that we use, and that I teach inside of the Drop Ship Blueprint, we want to have about a two and a half percent conversion rate, meaning for every 100 people that visit our stores, we want two and a half of them to buy. Now his conversion rate is well, well, well below that. And he said, even though he's running ads, not spending a bunch of money, but putting money into it, he's only getting a couple sales a month. Now his products range from 10,000 to 18,000. So still not bad money, but obviously not where he wants to be, not what he wants out of his business. So I did give him some feedback, some tips on what I would focus on if I took his store over tomorrow and obviously wanting to increase the amount of sales.

And before I share those tips with you, I just want to share why it's different or maybe a little bit of a variation of what we normally do and what I teach in the Drop Ship Blueprint. And that's because in module one of the training program where I'm going through pricing criteria, I share how for a business that's as hands-off as possible, you really want the price point, meaning what you would sell to customers for, to be between about $200 and $1,000. Because in that price range, when you're selling to the upper middle-class like we typically do, they're not really buying decisions that require a whole lot of thoughts. So obviously when people are buying products in that price range in the upper middle class, they do want the item. They're not just randomly buying stuff to buy it, but they're not sitting there thinking about it for weeks.

And it's just a very simple buying process where typically you don't need a lot of customer service and you can kind of just get results the easiest way, right as having a true lifestyle business should afford you. So that's why that's typically our sweet spot for pricing. With that being said, we obviously sell products that are more expensive and we have many other students that do. And we have some of like this person I'm talking about right now that I was just talking to that is well, well, well above that pricing criteria. So that's why things change a little bit. Now also I'm sure people that are watching this or listening to this are thinking, what can they possibly be selling in that price range, right? Like 10,000 to $18,000. Now I'm not going to give you any niche ideas, but I will just say that some of the products that people drop ship in that price range are things that they only cost that amount of money, right?

There's no cheaper versions. They're products that only appeal to the 1%. Now the 1% people think because it's 1% it's small. There's a lot of people, the 1%. I think in the US it's almost 2 million people. We have what we have 300 million people. It's probably a little less than 2 million people. And the top 1% is I think the most recent number I saw was a combined household income of just over $400,000 every year. Right? So there's a lot of people literally almost 2 million of them with a lot of money that spend it online. So some of the niches literally only will appeal to them or be affordable to them. And then there's some other niches as well that you're just in a higher tier of product. So maybe somebody is selling sofas for $1,500, and then somebody is selling these high-end leather custom made in Italy, Italian sofas that... Yeah, they're made in Italy, they should be Italian, but they're $10,000. Right?

Or you could buy a watch for 20 bucks, or you could buy a Rolex for whatever 15,000. So there's different prices like that as well, where you're in a niche, but you're in the higher end. Okay. So that's the type of things that people are selling in those much, much higher price points. Now, how do you think about conversion rates in a niche like that and how can you get your conversion rate up? Well, the first thing I'll say is your conversion rates when you're selling at that price point are not going to be the same as a store that's between 200 and a thousand dollars, right? Two and a half percent conversion rate on a store with an average order value of $14,000 is going to be really difficult to achieve unless you have a very, very small budget and you're only running the most targeted ads to the hottest audiences.

So first thing to know is you should expect a lower conversion rate because even though the people buying these products can afford them, there still is more of a buying decision and more of a process that leads to the sales. So something that this person mentioned to me, the Drop Ship Lifestyle member was that they only currently had products on their store from a couple of different brands. And obviously they're following the Drop Ship Blueprint where I teach you should find at least 20 suppliers to work with. So my first tip to them for how to get their conversion rate up was get approved with more suppliers, right? Surprise, surprise, increase your product offerings. That way you might have products at different price points within that niche, but at the very least you'll have different ads, right on Google shopping that are bringing people in to different products that may just end up by default having a higher conversion rate.

Those are things you won't know until you're sending traffic to those pages. So that was my first tip there. Get approved with the rest of the suppliers. Obviously, if you found 20, you're not going to get approved with all from day one, but you'll have enough to build a business off of also, for anyone wondering, like how do we get approved with suppliers? I teach that in detail in module four of the Drop Ship Blueprint. So if you're a member go there, if you're not a member, go sign up for Drop Ship Lifestyle and go through it. It's I mean, that, that module is worth the price of admission on its own, but let's move on to the second thing that I shared with him in terms of how to get his conversion rates up for products that literally start at $10,000.

So the first thing I recommended, and again, this is what I would do if I took over the store today for myself, it would be analyzing my traffic to see where it's all coming from and also where on my store it's going to. So it's one thing to look at the traffic split, right of, "Oh, we're getting 60% from Google and we're getting 40% from Facebook and maybe 30% from Facebook and 10% from organic," we want to know all that, but we want to know where it's going to when people actually land on our store. So once we have that data, we can start doing things like optimizing our campaigns by obviously adding negative keywords that would not lead to a sale for a product in that price range. This could be something like, let's say you were selling watches and you see a keyword cheap or inexpensive or sale. Those aren't the keywords that are going to be leading to high ticket sales, to extremely high ticket sales.

So those are the type you'd want to cut there. Also by looking at the data and seeing where on your store people are landing, you can use that information to further optimize those product pages to make sure the product pages on your store that are getting the majority of visits will convert more, will turn more visitors into customers. Now, I think the biggest tip that I shared with him that I'm going to share with you right now. So hopefully by the way, you guys appreciate it, these tips, if you do make sure you're subscribed and make sure you leave a like, because it definitely means a lot. And I appreciate seeing all of them as well as the comments, but yeah, the biggest tip again, that I think is more unique to the extremely high end products is to start conversations with your visitors.

Many of the products, right, that are extremely high ticket, that's fine. It's fine to list them. It's fine to sell them. But like I talk about again in the Drop Ship Blueprint is that once you get well above that $1,000 price point, it's going to require more one-on-one interactions to close the sale. So some ways you can start more conversations are obviously to install, live chat on your store and automatically trigger it to pop up, start conversations, engage your prospects. Also do an exit intent overlay when people are looking to leave where you can capture their email address and ideally their phone number as well. And then for products in this price point, my advice is to reach out manually at first. Okay, I'd even consider like putting a page on the store, literally a page like linked in my footer, or maybe in my header that said something like, "Request a quote," where different prospects and website visitors can enter the products they would like to buy.

They can say how many they would want when they would want them delivered by and let them enter their information so that we can then start the conversation with them to take a visitor into a customer of a sale that could be worth. I think on average was $14,000, right? Now, the reason those things are important on a store where products are that high priced one is just for the trust factor. It's going to take more to build up trust to somebody, for somebody to take out their American Express and put down $19,000 on a store that they probably never heard of before. Also, when you get to this price point, a lot of the buyers there are used to being, how can I best say it? They're used to having more of a concierge experience almost, right? A personal experience where they can ask more questions.

They at least feel like they're getting that higher level of service. So that's why in the Drop Ship Blueprint where I'm showing how to build a lifestyle business, that really requires the minimum amounts of human interaction as possible. I recommend sticking to the price points between about 200 and 1,000 bucks, because that's going to be where the least amount of customer service is going to be required, but it doesn't mean you can't make money going extremely high ticket. You definitely can. You just need to expect that there's going to be more of those conversations happening that will turn those visitors into customers. So like I told the person, I was just speaking to the Drop Ship Lifestyle member. I have no doubt that if anybody selling in products in that price range combined all these three things together, they will have higher conversion rates.

I still don't think it's going to be 2.5%, at least not at scale, but it will be very, very profitable and it will be a strong business. So that's my advice guys. That is how to modify the Drop Ship Blueprint to sell extremely high ticket products and drop ship products for $10,000 plus. As always, I hope you got value from this episode. If you did again, make sure you're subscribed. Make sure you give it a like if you listen on Apple Podcasts, please leave a five-star review. I appreciate that. And I read all of them. And if you want to know how we build highly profitable semi-automated stores, the best place to start over at dropshipwebinar.com, D-R-O-P-S-H-I-P webinar.com, where you can get a free training from me, plus a special offer on the Drop Ship Blueprint. So thank you everybody. I appreciate you. And I'll talk to you on Thursday for the next episode of the podcast. See you everybody.

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