Hey everyone, it's Lewis Smith here. And if you're thinking about starting a dropshipping business, or maybe you've already tried to start a dropshipping business, but you've not yet had much luck. Well, today we're going to be asking the question: Can you really dropship products that are over £1000 per item? We're going to be covering some really important stuff about what you must know if you're going to sell products over £1000 pounds per item.
Before we get started, if you'd like to learn about this in more detail, you can head over to DropshipUnlocked.com/FREEfor more in-depth, on-demand training that we're running.
If you're wondering who I am, I'm Louis Smith, and I help solo entrepreneurs get started with their own eCommerce businesses using a type of dropshipping where you can sell products upwards of £1000 per sale. In today's video, what we're going to do is cover exactly how you can do that.
The clients that we typically work with come to us because they've researched all the eCommerce models, they've looked at FBA, they've looked at eBay, Amazon, products from China, et cetera. The idea of drop shipping makes a lot of sense to them, especially this kind. They know that they want a business that's going to give them back their time, and they can run it from anywhere, from a laptop or even a phone these days. They want that stable business that's going to give them long-term financial security. That's the dream. That's why everyone starts an online business as a solo entrepreneur. Even though the clients we work with understand that this is not a get-rich-quick push-button system, it's just not. It's going to take hard work. But typically they already have an income stream that they're able to use to support their business as they're getting it up and running. That's how we find that they get the best traction.
They're often willing to put themselves out there and actually speak to suppliers, and be the face of their brand. But our clients often tell me that they're worried that they don't know how to find products that are over £1000 that would be right for them to sell. They're worried that even if they did, customers wouldn't necessarily want to buy from them because, typically a piece of feedback that I often get is, "Well, why would anyone want to buy it from me when they can buy from this global, established brand that's been there for years?" I get, it makes sense. That's something that is, I wouldn't say a valid concern, but it is one that a lot of people feel. If you're feeling like that, you're not alone. That's definitely something that people feel.
They're often worried about the risk, because there's a lot of rumors. People talk about, "Oh, doesn't high ticket or high value items mean you're taking on a lot of risk?" Well does it? Let's cover that, because I don't think it necessarily does. It does make sense though, that those other fears. Those are the concerns, the worries, because it's new to those people, and it's different to what 99% of people talking about business and eCommerce and dropshipping online are saying at the moment. I'm sure you've probably heard, I certainly have. There's a lot of noise out there.
The model that we use is nothing to do with eBay, nothing to do with Oberlo, or AliExpress, or Amazon, or any of those things. Usually, when people start out trying this, they're feeling uncertain on what steps they should take to get started to build their business from the ground up. They don't know that path that they need to take. They're often overwhelmed, and it's not hard to get overwhelmed in this particular industry, because there's so much information out there. There's so much rubbish out there as well. They're worried that customers won't take their brand seriously. That's a big one, because they often feel, like I said, that customers would just buy from a more established store. Surely. Surely that would be the case. Well, maybe not.
I understand what it's like though. When you get started, you often think, "Why would anyone buy from me? I'm just a newbie. No one's going to take my site particularly seriously." But I always tell them that the truth is, it doesn't matter. It does not matter if you're a newbie. If you select high value products, so usually we're talking about products upwards of about £300, and they have high enough demand, and you can offer fast delivery; so next-day delivery, ideally, but if not one- to two-day delivery should be fine, because you're working with domestic suppliers inside the UK; there are plenty of ways that you can add value beyond just being a big brand and an established brand. There's loads of ways that you can win that sale over your established competition and still succeed in this.
By the way, if you're interested in how to do this and the specifics, the step-by-step detail, a more in-depth training is available for free at DropshipUnlocked.com/FREE. Head over there now and you can watch the on-demand training.
A perfect example of adding value with this is, my wife and I were recently in the market for buying a new bed. We were looking for one of these new beds, had the kind of style that we wanted in mind, and we were looking around shopping online. Looking at all the different options, the different retailers, and it was hard to separate between them. We were looking around and so this was me in customer mode, trying to purchase a product. I noticed that this one particular retailer, so site, was selling beds with free mattresses. Now for us, that was really convenient because I was thinking, "Well, I don't particularly want to buy a bed, then have to measure, well what size mattress do we need? Find another mattress company that are going to deliver. It means that we'd have to be in to accept two different deliveries, probably, if we ordered them from different places." Just didn't want the hassle of getting it wrong. Plus I knew, if I got it wrong, it would probably be my fault for making the wrong decision. I just thought, probably easier go with the one that's offering the free mattress.
Now, interestingly, and here's the point, the price of that one with the free mattress was actually higher. But consumers love the word free. If you're anything like me, you can't resist something that's free. If you walk past one of those restaurants where they're handing out free samples and stuff, it's always too tempting to just be like, "Oh, go on and then if it's free, I'll take one." Well, that's it. They were saying, "This is a free mattress." Now, they may have inflated the price of the whole package to make sure that they're still profitable with that mattress being sold as part of the bed, but that's my point. By the way, I'm not saying that mattresses and beds are necessarily good or bad products to dropship, but you get my point.
The added value means I didn't care where I was buying it from. I wasn't looking at this brand thinking, "Are they established? Have they been around for years?" Looking into it in that much detail. I had a need. I wanted a product. Happy to pay slightly more for the convenience of just having it all in one go. So that's how you compete. That's how you win business over more established competitors, or at least it's one way that you can do it.
Now, another thing I always hear our clients say is, "Why would anyone purchase those products?" That's them falling into the trap of thinking that they themselves are their own target audience. Something I always say to them is, "Remember, just because you are not your target audience, or target demographic, whatever you want to call it, your customer-base, does not mean that you can't find your target audience." Just because you're not it, doesn't mean that you can't target that audience.
To explain this, it reminds me of a guy that I used to work with when I was working a job at a company back in the office one day. He told me one day, as we were sitting at our desks, he said, "I've just spent £350 on a hat." Now, if I gave you that information alone with no context, what's your first impression? 350 quid on a hat. That's expensive. That's ridiculous. Well, that's like when you say to someone, "Well yeah, you can dropship products over £1000." With no context, it seems crazy. It's like, "Why would anyone buy products that are hats, like one of those baseball caps, that's over £350?"
I couldn't believe it. To me, it seemed crazy. Here's where my mindset completely shifted on this. The colleague then told me that collecting these custom, one-off, unique design baseball caps, these hats, was his biggest passion. That's what he did. That was his thing. He even had a room at home where he framed them and collected them. He was so passionate about it, that 350 quid was nothing to add to his collection with this unique ... But see, I know what the model of how well has that he wanted, but it was obviously one that was really unique, rare, sought after. The 350 was a tiny price for him to pay to add something to his collection that he was so passionate about.
That's the same with drop shipping. Whilst I was not the right target market for that product, he clearly was, and he was happy to pay that, because it aligned with his passion. When you open up your mind to, not just what you think something is worth, and what you would pay, but what anyone would pay, what that target market would pay, is huge. That's the power of the internet. You can get in front of the right people that you are targeting.
The main points that I'm trying to make in today's video is really that, firstly: You can add value. You can add value in other ways than just trying to be the lowest price. Because doing that just causes a race to the bottom. It's not the game you want to play. Remember the mattress example I said, I paid more for that, because it came with a supposedly free mattress. It wasn't free, but they called it free because they just upped to the price of everything else.
Now, a few good tips that you can use when dropshipping, where you can actually apply this to dropshipping. If you're selling bigger items, items that maybe would usually require things like installation, or just someone to carry it upstairs or whatever, then you can offer what's called ... Firstly installation as part of the package. If they buy from you, they get free installation. Remember you can mark up the product to account for that as well.
Another way is something called white glove delivery, which is typically you'd get something called curbside delivery when you're ordering big items, which just means the truck will leave it at the side of the road, on the curb and then you'd have to take it inside yourself. Now, a lot of people can't do that. If you can add value to that customer by offering white glove delivery, which means two people would come and help lift it up the stairs and put it in place, then that's going to be huge.
A way you can do this as well, is offer accessory items. For example, if you're selling barbecues, that's your dropshipping niche, well, you could offer, say, one of these free barbecue gloves if you buy a barbecue from us. Or you could offer free barbecue tongs, whatever it might be. Something that is in line with the product they're buying. Something that adds value and that, if they buy the main product, they're probably going to need this product as well. Why not just give it to them?
Any type of accessory or even digital products are great. Things like free eBooks that you can have created and written on a site like Fiverr, for very, very low cost. Or even a gift voucher that's in a related department store to the type of product that you're selling to these customers.
Remember, if you're selling products that are upwards of £1000, you're typically making minimum 25%. It should be upwards of 30%. You're looking at £250-300, £350 net profit after that sale. If you can give away a freebie that's worth 20 quid to close that sale, you'd do that all day long, wouldn't you?
The second point that I made with the guy with the hats, is that you don't have to be in your target market. Remember, you just need to know how to find them, and then how to appeal to them, how to get the products that appeal to them in front of them. If you want to learn our strategy for finding these markets, and exactly how to appeal and add value to the products that you're selling, you can head over to DropshipUnlocked.com/FREE for an on-demand training that we're running, where we go much, much deeper into this.
With that said, I just wanted to thank you guys for joining me today. If you have any questions at this stage, feel free to put them in the comments. If you've found this helpful, feel free to let me know in the comments. If you find it in your heart to give this video a like, I'd be extremely grateful. If you do know anyone else that is either thinking about dropshipping or maybe has started dropshipping, but is struggling with it, and you think that this might help them out, this might open up their mind to a slightly different perspective, feel free to share it with them. Tag them in the comments, let them know.
Don't forget if you do want the deeper on-demand training that you can access at DropshipUnlocked.com/FREE.
That's it for today's video guys. Hope you found it useful. I'm Lewis Smith, and we'll talk again soon.