How To Choose High-Ticket Products That Actually Sell (Episode 143)

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🗣 In this episode, Lewis Smith and James Eardley dive into one of the most crucial aspects of running a successful high-ticket dropshipping business—choosing the right products that actually sell. They break down a simple, yet powerful strategy to help you select products that have demand, strong profit margins, and a clear path to success.

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Topics Discussed:
★ The Importance of Product Selection: Learn why choosing the right product is vital to the success of your dropshipping business.
★ Brainstorming 50 Product Ideas: How starting broad can help you land the perfect product niche.
★ Demand & Price Criteria: Understanding the market demand and price points that will make your store profitable.
★ Avoiding Brand Dominated Niches: How to choose niches that are not overrun by global brands like Apple, Samsung, etc.
★ The Home Turf Advantage: How this model helps you find profitable products that work without the need for a huge budget.

Links and Resources Mentioned:
 Pick up a copy of Lewis’ book: https://dropshipunlocked.com/book
Get Shopify for £1 a month for 3 months: https://dropshipunlocked.com/shopify
Get a free trial with a professional phone line: https://dropshipunlocked.com/circle
Watch the YouTube Series: How to Start a Shopify Dropshipping Store from Scratch on the Dropship Unlocked YouTube channel.

Key Takeaways:
★ Start Broad, Then Narrow Down: Begin with 50 product ideas, then use data-driven criteria to narrow them down.
★ Look for Products with Real Demand: Validate demand using tools like Keywords Everywhere to see if people are searching for your product.
★ Focus on High-Ticket, Profitable Products: Choose products priced between £300 to £2000 for the best balance between profitability and customer autonomy.
★ Find Suppliers Who Will Work with You: Aim for at least 10 suppliers in your niche to reduce the risk of hitting a dead end.

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★★★Dropship Unlocked - Lewis Smith★★★
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Transcript

0:00

After £5,000,000 in drop shipping sales I can safely say that to find profitable products you need to. Competition is a sign of demand, but the key to beating it. Is and that makes all the difference when finding a profitable product to sell. Now I think that is the most important aspect of finding A7 figure drop shipping products. Selling high ticket products can lead to generating 7 figure revenue on autopilot, but only if. Welcome to the drop Ship Unlocked podcast. I'm Lewis Smith, the founder of Drop Ship Unlocked and with me is our client success coach, James Eardley. Now when we're not recording podcast episodes or running our own e-commerce businesses, you'll find us helping aspiring entrepreneurs launch their own high ticket drop shipping stores. So if you're ready to build your own 6 or even 7 figure online business, then head over to Drop shipunlocked.com/. Now sit back, relax, and let's unlock your potential with the Drop Ship Unlocked Podcast. Today we're going to be diving into one of the most crucial aspects of building a successful drop shipping business and that is choosing which products to sell. Lewis product selection is one of the biggest questions we get asked by new members. So how do you go about actually choosing the right high ticket products for your store? What is the first person, the first thing that somebody should be looking for? Yeah, it's a great question and one that we hear, yeah, a lot from our members, isn't it? I think the first thing that I always say to to members is to start with just brainstorming ideas. Try and remove the restrictions or the limitations and just get 50 ideas down on paper. I say paper. You can use a digital device if you so choose, but you know, on your phone, on a Google doc or whatever. I just don't restrict yourself, just get ideas down because later we can move on to the niche validation criteria, which is a way of us whittling down those ideas into the ones that are the most likely to succeed based on data. And what I think is helpful there as well is as you're going through that process of whittling down your ideas and starting to be a bit more restrictive around what you might want to to sell in your store to set you up for the best chance of success, you will start to generate new ideas as a result of going through the criteria. So don't feel like your list of 50 ideas that you first come up with will be the only ones that you ever encounter. That's just your starting point. Those are your seed ideas. From there, we start to look and we understand and we look at the criteria. We narrow it down, whittle it down, then we can move through the the different criteria. So we start off by checking that there's enough demand out there and and that the products are sold at a high enough average price. So we want to find products that are already being searched for by customers on Google and we can use tools like Keywords Everywhere. There's a great tool for that that tells us the Google search volume in the country that you're selling into per month. So we know roughly how many people are searching for that product on Google per month. And then that gives us an indication of whether there's existing demands there or not. So that's one of many criteria. This makes sure that we're going into business serving an existing market, not going into it thinking, well, I like these products so hopefully everyone else will or hopefully I'll find my customers. That's risky ground, that's kind of shaky ground to be building a business on. And if it's your first e-commerce business or online business and you want to minimise the chance of failure, then there are some criteria we can follow to maximise our chances of success from the outset. And in terms of price as well, I focus on products. When we use our trademarked home Turf Advantage model, I look for products that have a decent price range of usually between say 300 lbs to 2000 lbs is is kind of the sweet spot we usually see. Now, of course there are exceptions to that. We were speaking to someone the other day whose average price point is 9000 lbs within our programme and others we've seen, you know, products go or, or sales go for over 100,000. So like that's not a complete black and white rule, but usually the sweet spot if you don't want to have to have lots of phone calls with your customers and you want them to make purchases through your website without having to interact with a human. 300 lbs and above guarantees that you'll make enough profit per sale for it to be worth it. And kind of around the 2000 or up to 2000 lbs means they will be happy to make the purchase without necessarily needing a phone call. As soon as you go above that, it starts getting into the territory of like, you know, well, if I'm going to drop 5 grand on this order, I want to speak to someone and that's fine. That might be your model, but just be willing to have phone support in place if that's what you're going to do. So yeah, just some some starter criteria there for us to to get the conversation started. Perfect. Yeah, love this approach. It's a it's a genius concept because you start out broad with just brainstorming 50 ideas and then you apply the criteria to each individual niche until you have a winner at the end. So we start with start with 50, then we're going to look for demand and make sure there's over 10,000 searches per month in the UK or the country that you're selling. And then we're going to look to see if the average price is above 300 as a minimum for all the products within that, that niche of products that we're looking at. So by now we'll have validated for demand and price. And like you said that that person's got a great example. He went through this process in in the programme, spoke with him a few days ago. He's going to be coming on the podcast either next week or in two weeks time. So look out for that one. It's been very exciting. He's hit about to hit £1,000,000 in sales with a 9000 LB average order value. So this is obviously 9000 is well above where we kind of set the store out as saying high ticket between 302,000 or 3000. How do you think he he evolved into going into those high? Prices, yeah, well, it's, it's something that doesn't happen by accident, I can assure you of that. It's, it's very intentional. If you want a product of value, an average order value of £9000, then that you know, that obviously means that many of his sales are for a lot more than that and some might be for for less, but it's averaging out at 9000. Now, just to bear in mind that doesn't mean that every product is 9000 lbs on his store. It could be that he's, I mean, we know from this individual that he's doing quite a lot of business to business sales where they might buy items in Bolt, they might buy 5 or 6 of, of one item. And therefore 9000 lbs, you know, is, is quite fast to reach when you're selling products that might be 1000 LB, 2002 and A and a half, £1000 per item. And so, yeah, very intentional and following the home turf advantage model to a tee. Really just making sure that he he's going into it with a a view of like what the criteria are that he wants in a business, a lifestyle business from the outset so that he lands in that position and has a business that makes 9000 LB sales regularly. The Super exciting is that you think £9000 per sale can mean every single day. If he just gets 2 sales a day, that's £18,000 in revenue, which at an average of a 30% profit margin is what's that about £6000 per day with profit to. And there's no way he's going to be spending that much on ads. So there's a significant amount of profit coming through the business every day. So he can continue to scale. So the Sky's the limit with this sort of business. And we will continue in a second just to go through the rest of the niche validation criteria for everyone that's going to be listening to the end of this podcast. We've been through the 1st 2 and there's about 9 in total that we'll we'll go through before finding the winner. But I just want to throw a few assumptions that people might have when they come into trying to choose a drop shipping products. And I had to break these assumptions when I came across the drop ship unlock master class. And the way that you validate your niches, Lewis, is some people think that you can create a drop shipping store around any products. So first of all, we need to break that one down. And some people also think that there's probably only 5 to 10 different products that would work really well. So a few different assumptions there that people we might need to to shatter those, Lewis. So yeah, what do you think about those two assumptions? Yeah. So to tackle the first one, I think that is a common assumption as well that, you know, any products that I'm passionate about could work. I just need to put the store in place and just need to run ads to it. But you know, if you have a product that no one wants, if you imagine, you know, you've got some random product that's not very popular, it's not very good. And you decide to go down to the market and you have a megaphone, which is, you know, our ads campaign here. And we just start shouting into the megaphone that you've got this amazing product that that you think so wonderful and no one really wants. It doesn't matter how loud you shout, doesn't matter how many people are at the market if they're not interested in the thing you're selling. You can't force an unpopular product on a market just by shouting louder about it. It's not going to make it work profitably. You might get a few sales here and there, but your costs to acquire those sales in advertising spend, it's probably going to be prohibitively high for it to be worthwhile. So yeah, that's definitely a myth that we need to bust today that any products can work. That's not true. There are a set of criteria that make this model specifically the home to have advantage work and we've proven it many, many times and by putting these criteria to the test. The other thing, the other miss, which is like you said, the other end of the spectrum is people might think, OK, well, if that's the case and it's very restrictive, then surely there are only like 5 or 10 products that that could work. And again, we've got evidence to suggest the complete opposite of that just by looking at the variety of products that are sold in our community, just like just the knowledge that we have of what some of our members are selling, they're so broad. You've got completely different types of stores, types of products, types of niches, demographics, B to CB to B. It's a very you, you have to come into this with like an abundance mindset and it's quite difficult. I think sometimes when we're sitting at home in front of our own computer in our own house, maybe there's no one else in your room or your house to kind of think that way that like, oh, there can't be that many people out there that would want that many products. But sometimes I kind of try and imagine like zooming out, you know, when like Google Earth, you zoom out of your house and you see all the hundreds of houses in your town. And then you zoom out of your town and you see the thousands of houses in the surrounding towns. Then you zoom out of there and you see like the, the county you're in and there's like hundreds of thousands of houses. And there's suddenly you see the cities, the whole of the United Kingdom. And there's what like, I don't know, nearly 70 million people probably by now in the United Kingdom. That's a lot of people. We don't need 70 million customers. We just need a few per day. Like you said, 2 per day. If your average order value is 9000 per order and you're making 6000 profit a day. Now, I'm not saying you're going to get that overnight. I'm not saying that that will be your situation. If you pick a niche that's maybe a little bit lower price than that, totally fine. It can still work. But just have that perspective of like, just imagine zooming out for a second out of your house and then the surrounding houses and just watch the opportunity expand and you realise you only need a blip. You needed a tiny percentage of people to be interested in the products to make a full time income business from it. So yeah, I think those two myths we can pretty much bust here and now. A. 100% they need to be busted. Otherwise you won't buy fully into the, the reason it's set up, but it's been so methodically set up this niche validation process that we're going through that it's been able to generate consistent 7 figure stores based off the back of this. And had they just got in and shoe horned in a product that they liked, or if they'd had that negative mindset thinking that there's only going to be a few different niches and they'll be saturated, then they never would have been able to proceed. So got to get that set straight from the start. Now on to the next validation criteria. So we've started with our big list of 50. We've validated to make sure they've got high enough average price. We've validated to make sure there's enough demand from the the the two you mentioned. Before Lewis. The next thing that we check is to see whether it's a brand dominated niche. So that means we don't want the niche to be dominated by household name brands. So this is something that people might not consider straight away. Is it Lewis? No, exactly. And I think a lot of the time this throws people because you might assume that it's fine to enter a market even if it's dominated by the likes of Apple and HP and Samsung, LG, you know, like selling consumer electronics in that example. Or there's many other examples of niches that are like truly dominated by a few global brands. And there if you, if you think about it as a beginner business, if you've just set up, you've just registered your company, you haven't got any sales history yet and you turn up to knock on Apple's door and say, can we start selling Macbooks? They're unlikely to want to supply you without you jumping through a few hoops first. I mean, they might do, I don't actually know Apple's trading policies in terms of opening accounts. But it's unlikely that if even if you do get them as a supplier, the people are going to flock to your store to buy those products, especially when brands like that often sell directly from their own websites anyway. So that's definitely something that you can make a life a lot easier for yourself going into this by not going into a niche that is so dominated by globally known Browns. The kind of the litmus test that I like to apply to this when our members are asking about this is if you were to go to your friends and say the list of the Browns that are in that niche that you're thinking of going into. So the the manufacturers of the products, would your friends know them? Would they immediately say, oh, well, I know Apple, I know Samsung, I know LG. If they would, chances are they're probably globally known brands. They're like dominated by by certain big companies that it's going to be quite difficult to infiltrate that market. Whereas if you were to read off 567 suppliers and the, you know, friends and family, but you put put them to say, well, no, I've never heard of those, Chances are it's kind of a small enough industry for you to be able to go get a trade account with these suppliers and start selling. Now, when I'm talking about suppliers here, I'm not talking about directories. I'm not talking about supplier directories, drop shipping directories. I'm talking about the actual manufacturers of the products. Usually in most cases where they're based in the UK, they might not manufacture the products in the UK, but they have them, you know, on the shelves in a warehouse in the UK and or or certainly in like Europe, like close enough to get fast delivery to your customers. Those are the types of suppliers that are going to likely say yes to working with you and also that you're going to have the best shot of selling their products because they're not the the biggest retailers in the world, the biggest brands in the world. Another an under appreciated niche criteria is the number of brands in a niche. We want to make sure that we have at least 10 brands that we know we can get going into that niche before we decide to to pull the trigger and go ahead with it. Because if we go into a niche and maybe we've only found two or three brands that we could work with, well, one of them might not answer the phone. One of them might say, no, not we're not opening an account for you guys yet. Give us six months a year. And the other one, you might sign and sell none of their products and suddenly you don't really have much of A business. But if we've got ten, chances are you're going to sign two or three straight away. You will probably get the next couple down the line in a few weeks time. And maybe there's a couple that you don't get straight away, but at least you'll be making sales and you'll start to build that sales history, that track record. And then later you'll probably get the remaining suppliers contacting you saying, hey, we see you're selling all of our competitors brand products. Can you also stock ours as well? And I say stock, like digitally stock. I don't mean actually buy stock because obviously you don't need to do that with drop shipping. But yeah, I want to know that there are enough brands in a market before I go into that market because I don't want to be there six months down the line thinking, well, I can't find any more suppliers. I'm I'm kind of stuck here like I, I've got, you know, I've had a dead end. I also another thing want to to know that there is enough competition to prove that there's demand so we can look at the demand in terms of the search volume. But I also want to know there are other people like me who are doing what I'm doing in that market. But most people shy away from this and they think that if they find someone else who's selling brands, who's drop shipping in that market, that it's a bad thing that they think, oh, well, it's been done. I can't compete with that, you know, But I see the opposite. Again, remember that analogy of like zooming out and looking at the whole of the the country that you're in and how many millions of people there are? This the. Retailer, the competitor that you've found that's doing the same model as you, you might only be getting a few of those people per day to buy from them. That leaves a. Lot of. People out there who are also interested in that market, who can now buy from you and become your customers. So I always want to see that there's enough competition there and enough other retailers to prove to me that it's worth going into because they wouldn't be there if they weren't making money. That's the the clue here. And I also look at reviews as well. I want to see the reviews from suppliers, products that I'm thinking of selling or even reviews from other retailers on there to see that there's traction, to see that people are making sales and to see that they're happy with those sales as well. And yeah, if they're if, if there's common themes in those reviews and you see that customers are maybe dissatisfied with certain features, that could be your opportunity to offer a better version of that experience. So like, is there, you know, are they upset by the customer service or the selection of products or things like that, that you could come in and offer a better service than what's already out there in the market? So yeah, I'd see competition as a good thing. And I used to be intimidated by competition and I still have people sometimes jumping on Q&A calls with me in the master class. And they, they say that they've seen other retailers out there that are, that are established and they feel intimidated by the size of the, the competition that's out there. But I have to go back and say exactly as you've done there, Lewis, and say, we just need a small slice of the pie. We need to start from somewhere. We need to just start selling. And it's surprising sometimes how small than simple and basic your website needs to be in order to start generating that first bit of revenue for your business. So, yeah, love this methodical process that we've got when it comes to validating a niche. We've made sure there's a good average ticket price. We've made sure that there's enough demand that the brand, the niche isn't brand dominated, that there's at least 10 different brands and finally that there's plenty of competition here, enough competition to justify that there's some market there for us to to go into. At least three direct. Competitors is what we set. So we've applied these criteria that you mentioned there Lewis, the five that we've been through. There's a few more criteria then to apply that we lay out in the programme. And then we'll have a winning niche that we've validated that we can be confident to enter. But now we've know which products to to sell, we're on to the next challenge, which is well, what do we have to do now to get our products ready to sell and launch ads? So what are the next steps that you take? Yeah. So now, now that you know which products you're going to sell based on data, not just, you know, I feel that these products might sell, but it's like I've got evidence here in a spreadsheet that I can see exactly why they're going to succeed. Now we actually need to partner with the suppliers that we identified so we can actually fulfil the orders for these products and make sure that we can list the right brands on our site that customers are searching for so we can generate sales. And then we can have those suppliers send the orders out to the customers. So that's that's probably the next step. And even before doing that, there are a few foundational things that I'd advise putting in place. So the first is we always like to set up a limited company if we're doing business with suppliers. It's just a nice professional way of presenting yourself. It good from an accounting perspective. It's good from a liability protection perspective and to setting up a limited company. And then once you have the limited company, setting up a business bank accounts as well as a good place to start keeps all the finances separate from your personal. It doesn't get messy at the end of the year and tax return time. You can just have everything goes in and out of the company as it should do. And yeah, we can start to build up our initial Shopify store, which we call our minimum viable store, which we guide you through how to do inside the programme. We can then take that store to show suppliers that we're serious, to show them that we have kind of like a shell of a site and say, look, this is where we're going to present your product. Once you have your first supplier that suppliers products go on to the store and it's no longer a demo store, it's a real store. Now you just have one supplier and then you take that store with the one supplier and the suppliers products live on it to your other suppliers and that's when you can then onboard those and that's when the momentum starts to build. We call that the snowball effect when you start getting 2 suppliers, 3 suppliers, 4 suppliers. Before you know it, you've got like a few products to upload and a real store that you've started to build. So once that's done, we can set up things like our policies and then we can start getting like some ad campaigns live, our e-mail marketing. And that's when it really starts to to work as a machine and it starts to come together and that's when it will start to generate sales, which is then when it gets exciting. Yeah, but it comes to life after the the work that you do. It's all front loaded and then once you're up and running alive, you know that you're going to sell. And we had a conversation with a member a few days ago and he was being doubted by his friends or, or family about the products that he was going to sell. But he had a immediate comeback to that because he had said, well, actually, I know they're going to sell, not just based on a hunch, not just based on the, the feeling and thoughts that I've got thinking that they're going to sell, but actually based on the data, the spreadsheet that he'd been through to know that there's clear demand, clearly people selling and it's ready to go. So that's what it gives you the confidence to know that you're going to make sales in that, in that as long as you go through that niche validation criteria. So it's super, super powerful. Lewis has been through this process plenty of times. And also once he went through it and recorded the whole thing for a YouTube series, which is awesome. Lewis, it's a it's a fantastic series. So for anyone that knows now that the process had to listen to this podcast that actually wants to watch the process being done, watch Lewis drive around looking for his initial 15 niche ideas. Then there's a series on YouTube called How to start a Shopify drop shipping store from scratch on the drop Ship or Not YouTube channel. And yeah, enjoy that. Enjoy that video watching Lewis picking up his ideas and and go all the way through to having a store built. OK, any final thoughts then, Lewis, for anyone ready to select their high ticket products to sell? I think just what we've covered, really start by doing the right research, make sure you're validating the demand. Check for the the average selling price point. Make sure you're going into a a niche that meets the criteria of like that it's a high enough price point. And make sure that you've got suppliers readily available so that when you do go into that niche, you've got a list of suppliers that you know will drop chip that you know you can call and start getting on board. And then once you have those foundations in place, the rest starts to fall into place. You just got to take those first steps, build on that momentum. And if you're unsure or or stuck as to like where to start, you can check out our free trial for our accelerator programme and head over to drop shipunlocked.com/start to have a look at that. And yeah, that's probably the best place to start because we've got everything laid out for you to avoid the overwhelm and just get started. On the right foot, step by step. Are you enjoying the podcast? We'd love to hear from you. Leave a comment or a review and we might feature it in an upcoming episode. And for detailed show notes and resources, visit dropshipunlock.com/podcast. If you found value in any episode of this podcast, please could you take just 10 seconds to leave us a quick five star review on your favourite podcast app. It helps us more than you can imagine, and who knows, you might just hear your comments. Read out on the show. Thanks for being a part of our community. Your support helps us keep delivering new episodes to you every week. Now let's answer a question that we've had in from a listener of the podcast because we love to feature your questions. And if anything comes to mind while you're listening or watching an episode, simply comments beneath the YouTube video version of this episode and we may feature it on an upcoming episode. So that's exactly what William Robson has done. So he commented to ask to you Lewis, how can I be confident that my drop shipping investment will pay off? Yeah. Thank you for your question, William. It's a, it's a great question. And I think taking the time to learn, investing time in learning the fundamentals of drop shipping will put you at a significant advantage. The more you understand, the more confident you're going to be in the decisions that you make. So that we talked about choosing A validated product is another thing. Making sure that you've selected products that have proven demand and use market research and validation techniques like we've talked about today to just ensure that the products that you're thinking of selling have a track record of success. There's data behind why you're choosing them. I think the other tip to making sure your investment pays off would be to get around other successful people that have done this and are doing this. Surround yourself with those people who've done it before. Join communities, connect with mentors, listen to their stories, and that kind of experience that you glean from them will give you the confidence to then push through the challenges that you have. So you got to enter with the right mindset. Be prepared for the long term. It's a positive, growth oriented mindset that you're going to need for this because you will face setbacks along the way. We'll be totally upfront with you and honest. Right now you will. But persistence pays off. And if you're around other people when you face those setbacks, it's going to be 10 times easier for you to overcome them. So you can breakthrough those challenges. And if you follow the right steps, stay consistent, keep learning, your investment will pay off over time. It's just all about staying focused and committed. Hopefully that answers your question. Yeah, it's a great question. And the best way I like to to to talk about your investment and getting a return on that is not just with the drop shipping business that you know, we've seen multiple people go to six figure 7 figure revenues. It's also the personal development and that that is guaranteed the person you'll become by pushing yourself to build a business is arguably the biggest reward out of these sort of things when you invest in yourself to get started. So thank you Lewis for that. Thanks, William for your question. We're now going to highlight a recent review that we've had for the podcast as well. So a big thank you to Helen Drake for sharing your thoughts on a recent episode where Lewis and I were role-playing how to sign suppliers. So Helen said the role-playing is extremely useful. Thank you. Good stuff. Thank you for your review, Helen. Glad to hear that you've been enjoying the podcast. And yeah, the role play episode we did, I think that went down really well. We'll link that one below for anyone that hasn't seen that. But that was where James and I role played the situation of contacting A supplier for the first time and some of the objections, they might throw you away. So I enjoyed that one and sounds like it was popular, so maybe there's another one of those. We should line up soon. Thank you very much for listening to the podcast today. If you enjoyed today's episode, maybe share it with a friend or a colleague that you think might be interested. There's a great way for you to spread the knowledge and help someone else on their e-commerce journey, and we appreciate every bit of support you give us. Thank you for joining us on this episode of the Drop Ship Unlocked podcast. We hope you are leaving with new insights and inspiration to fuel your entrepreneurial journey. To kick start your e-commerce business, head over to drop shipunlocked.com/ start. It's the perfect place to start and get access to resources that will help you build your business from the ground up. I don't forget to hit that subscribe button for more episodes packed with strategies, tips and success stories. Plus, if you enjoyed this episode today, a five star review would mean the world to us and you might even get a shout out on the next episode. Thank you for choosing to spend your time with us today. We can't wait to bring you more insights on the next episode of the Drop Ship Unlocked podcast.