Most of the eBay drop shippers are working only with products between $5 and $50, and they miss the most profitable niche in any eBay dropshipping business which is the expensive products, the products which are over $100 dollars and even products which are over $1000.

There are two reasons why people don’t work with these expensive products, the first reason is that it is dangerous, people know that this is dangerous and they are right (Tomorrow we will talk about this part). the reason which I will talk about with you on this article is the second reason which is the lack of knowledge, people don’t know how important it is to work with expensive products and how profitable it can be, so let’s take a look at 6 reasons why you must start working with expensive products right now and why this will increase your store profitability by a lot of percentages.

The 1 Reason:

So the first reason is that the expensive products cost you much less fees because of their high profitability so let me explain you what I mean, for instance, if we have 1000 products in our eBay store it means that we have the premium subscription store, therefore, we pay to eBay $60 a month and if we have AutoDs plan of 1000 products we will pay another $40 for AutoDs which means that for 1000 products we will pay $100 fees. so our breakeven starts from 100 dollars, if we make less than $100 per month we will lose money.

What does it mean? it means that every product which we upload to our store cost us 10 cents per product, if we have 10,000 products it will cost us 0.0628$ per product (0.03(eBay) + 0.0328(AutoDs)) almost half! so what does it mean, it means that if we sell products on average of 25 dollars per product with a 7% profit in this way we will make 1.75$ profit in every sale, so in order to cover our fees which are $100, we need to sell 58 products per month (100/1.75) which is around 2 products per day.

What about if we have some product which cost $200, with the same profit of 7% we will need only 6 orders like this per month to cover all our fees, what about products which cost $1500 which we sell with only 3% of profit we need only two orders like this to cover all the fees. Basically Selling one product like this in a month will cover half of your fees which is amazing.

So when we sell expensive products we can make much more profit per product and we can make much more money and cover our fees much easier, so this is the first reason why you must start working with expensive products right now.

The 2 Reason:

The second reason is PayPal fees, when we sell a cheap product, a product for like $5, the percentage of the PayPal fees is very high because we pay to PayPal a percentage + 30 cents per order; this 30 cents is a very high percentage for an order of $5 so this is the second reason.

The 3 Reason:

The third reason is the customer support, when we sell expensive products we need to spend much less time for customer service because every product gives us much more profit, we also sell fewer products but with more profits which is amazing for us because for each product we give less customer support. on the next video, we will also talk about how to give the best customer support when you are working with expensive products.

The 4 Reason:

The fourth reason is that expensive products have much less competition to think about this, you are not the only one who is afraid to work with expensive products, most of the drop shippers are afraid too and this is why there is much less competition for these type of products.

The 5 Reason:

The fifth reason is that it worth doing the optimization, so if we want to spend time on a product to optimize the title, the item specifics, the images, and the description it’s better to do it for a product which will bring us much more profits, and not for a product which brings us only $1 or $2 profit. it’s much better to spend your time on a product which can bring you 45$ or 100$ than spend this time on products which bring you only $1 one or 2 dollars profit.

The 6 Reason:

The final reason is that you can keep these products in your store even half a year or one year because one sell from these products can cover you years of fees, so it worth to keep the expensive products in your store even for a longer time period because these products are the main profit of your store.

Now one question which I want to answer here is what is the percentage of expensive products we should have in our store? so I recommend around 20% or 25% of your store to be expensive products, products which are over $100 but be aware this is dangerous and you must know how to work with these products in a smart way and in the right way. we will talk about this on the video which we will release tomorrow.

I hope that you like this video write down in the comments if you are working with expensive products right now and if you are planning to start working with expensive products, don’t forget to subscribe to our YouTube channel for daily videos see you on the next videos bye-bye.