Have you heard of the phrase "big ticket item"? Have you ever read about it in a magazine article or website devoted to business or finances? If you do not know yet what the "big ticket" is, let me explain.
What is a big ticket item?
Big ticket items are goods or services that cost more than most individuals can afford with a single paycheck. These do not necessarily need to be unique or luxurious objects but can simply be expensive items of any type. It can be a brand new boat or a sports car, but, for example, new furniture or a family vacation package. It can be workout equipment, a computer, or even services such as coaching and personal training. Those items have a high price, but also a high value.
Recent reports show that almost half of the consumers prefer to make a big purchase online than in a physical store. Examine the buyers and their habits more thoroughly, then.
Who buys big ticket items online?
Research from TD Bank, conducted in 2021, showed that 70% of surveyed customers planned to buy a big ticket item in the next 6 months. In most cases, those people were the so-called "millennials" (aged 23-38). A large amount of them, along with Generation Z (aged 18-22) do big ticket shopping online, due to the popularity of online stores among younger people. While younger people also use online banking services rather often, people above the age of 40 often prefer to pay cash.
Buying online provides several benefits for customers, including the ability to make purchases at any time of day, even when stores are closed or if there is no store in their location. The buyers do not need to worry about the traffic on their way to the shop, the weather, the delivery... Most individuals prefer internet purchasing since it is faster and more convenient.
Cash or card? How do people pay for their big ticket purchases?
As big ticket items are often considered special due to their increased value, they are not something customers purchase every other week. People want to spend their money on something worthwhile, and higher quality obviously comes at a higher price. You can see this, especially during the holiday season, when many of us buy special products to give to someone as a gift or to finally have something they wanted. The purchased product is like a reward, bringing them feelings of joy.
For some it's just a splurge, while for others it is effectively an investment. People do not take as much time to decide whether to buy a book or a regular t-shirt as they do when purchasing luxury cars - and this is one of the major differences between buying small and big ticket items.
Customers often consider a big ticket purchase to be a major decision, and they reevaluate and contemplate it for some time. After all, it's not easy to spend that much money on one item. These products and services can cost a thousand dollars or more, and buyers want to feel confident and reassured when making such a large investment. People behave differently when purchasing economical, everyday items versus expensive items, and you must keep this in mind when trying to sell. Big ticket e-commerce: where, when, and how
Know who the potential client is
As a seller of big ticket items, you are different from a retailer of everyday goods. Vending high-priced goods and services necessitates specialised knowledge.
You will need to regularly examine and research the behavioural patterns of your clients and visitors to your website – at what times do they typically visit the page? Are those international or domestic shoppers? Did they find you through a search engine or did they already know your web address?
Observing patterns can help you determine which areas of your marketing strategy need improvement and what kind of customers your shop attracts.
Invest in a good website and marketing
Obviously, optimising your website is the key aspect here. The majority of car buyers, for example, only go to the dealership when they browsed through the available vehicles online. Their time is precious, and they do not want to waste it. In order to make consumers stay on your website and possibly revisit it, you need to make it a pleasant experience. You don't want a flawed website because it will deter potential buyers rather than bring them in. The design should be modern and responsive, and it would be ideal if it was also mobile-friendly - some customers may want to access the website via a smartphone or a tablet.
Your website should also look genuine. It should not only be an advertisement for your product. Try adding some interesting info there to catch the eye of a person visiting the page, maybe add a discussion board or for potential clients, put a review section in a visible place. Shoppers do not want to spend money on something that is presented in an unprofessional and shoddy manner. After all, proper UI and UX are worth the investment.
Selling high-priced items may require more effort from you than selling anything else. Keep in mind that the more money people spend, the higher the quality they anticipate. Build proper sales funnels keeping in mind the buyers' demands. Show them excellence and persuade them to buy from you specifically.
Be careful and build trust
Offer your buyers free advice when they need it. Provide assistance by having a properly set up and operational customer service. Buyers may have questions about their potential purchases, and they will most likely want answers quickly. You can also set up a chatbot and include a FAQ section somewhere, so that visitors can get the information they need as soon as possible.
What else? You can offer face-to-face meetings for clients who are unsure about making such a big purchase online. If they are afraid they will make a bad deal, gain their trust by assuring them that they are making a good decision and will not regret it. If possible, you may even allow the buyers to have a sample or a test of the product or service you are selling, so they can check if it is what they need.
Many people consider sellers who give their customers the opportunity to test their products to be more credible and professional because they demonstrate the seller's confidence in his goods. For instance, if you sell cars, you can provide a test drive, and if you provide coaching or education aid, such as private schooling, you can provide the first class for free.
Take proper care of your shoppers
Customer experience was a top priority for online businesses in 2021 and according to Temkin Group, 2022 won't be different. If the shoppers like you, they will likely return to you. Offer memberships, privileges or special discounts to build customer loyalty and make multiple sale with the same client. A satisfied buyer may mention your shop to a friend, thus recommending your goods - and that is essentially a free advertisement of a great value.
Give them a sense of security, offer advice if needed. When you close the sale, always assure the customers that their purchase was worth the pay, so they aren't haunted by buyer's remorse.
What do you risk by being an online seller?
Online sales have their downsides and may be a risk if you are not prepared. You need to have a sustainable business model, and everything planned from A to Z to avoid unpleasant situations. There are some possible risks and difficulties you may encounter when selling big ticket items.
Big ticket deals online are not easy
A sales cycle for an expensive item is longer than usual. It is harder to sell something for a few thousand dollars than for a few hundred. People are much more careful about spending big money than they are when getting something inexpensive, so you will need to wait longer for the sales to actually close.
They rarely buy big ticket items on the spur of the moment, so do not expect to sell dozens of goods on your first day on the market. Consumers will have bigger expectations from something worth three pay checks, than from a wholesale clothing - and since they are buying online, they need a proof of the quality of the item they want to buy.
If you owned a physical shop, they could just come in and check everything on their own, but convincing them that your product is worth the high price is your responsibility only here. If a person cannot physically see an example of your merchandise, they will need to make sure it's worth it in some other way, and you will have to get creative about it.
The cost may get quite high
To sell a product, of course, you have to have it first.
You can't set up a shop if you have nothing to offer. Get an idea of what you want to specialise in and be prepared to buy those products to later sell them for profit. It is highly improbable that you will be successful if you start with just one product and have high hopes of selling it to buy the other items.
Investing in an inventory is a must. A realtor wouldn't start with only one house to show clients, right? The more options you offer, the more customers you can attract - but all of these options combined can get very costly, especially because big ticket items can cost thousands of dollars each. At the same time, you are not 100% sure you will actually end up making these sales.
Starting with an online business for big ticket items requires more than just having a full item stock. In order for everything to run smoothly from the start, you must have a reasonable amount of money to even begin selling. Your shop will likely need to compete with larger businesses who have been on the market for months or even years. To stand a chance against them, you will need to invest a large chunk of money into it.
There are many examples of what you will need: proper marketing campaigns, good placement in search engines, a website, productive employees to take care of things such as customer service or taxes and invoices... This is just the tip of the iceberg.
Not using social media means failure in the long run
One thing that you must remember is that dealing big ticket items online will not work as a get-rich-quick plan. You have to invest time and money into working on brand awareness. The items you offer are likely not everyday goods that everyone needs to hunt for now and then. Building brand awareness is especially important on the Internet, where thousands of other companies are available 24/7 and try to attract customers to their shops. You want the shoppers to choose your services and your products in particular, but how would they do that if they never even heard of you?
Millions of users from around the world use social media everyday - and among them are your potential clients. Grabbing their attention online is not easy, when they are constantly bombarded with advertisements of millions of items on sale everywhere.
Social media accounts are a great way to interact with your target audience, and to avoid them is to give up, so to speak. Iif consumers can't associate you with a particular product or service, then they won't look for your shop when they need it. They will just google whatever they want to buy and, most likely, click on the first few results. Websites such as Facebook or Instagram, even Twitter, are where you ought to be, and keeping those active and engaging requires time and - most likely - a social media expert.
There is a risk of data theft and frauds
Last but definitely not least, you must always remember about keeping any personal data fully secure, as insufficient protection can bring you legal trouble.
The payment information, the buyer's address, even the phone number, everything must be kept secure at all times. Nowadays, data is a valuable commodity often sold on the black market and used for criminal purposes such as identity theft. That’s why set up proper security and data storage systems in your shop to make it risk-free for both you and your customers.
Remember, if you want to sell internationally, you should always take the time to learn about the local laws regarding personal data protection. You wouldn’t want someone to commit credit card fraud or identity theft using the data you have were supposed to keep safe, would you?
Is it worth it to sell big ticket items online?
Overall, there is a plethora of things that go into creating a successful business. Even though selling big ticket items might sound promising and very advantageous, you should not dive into it without first fully researching the topic.
You need to secure proper finances to stock the shop, pay any employees that you may need, set up a website or to get engaging advertisements online. There are also some new responsibilities that you will have as an online business owner, and to advance in that market you will need to take care of everything with great attention to detail.
With proper preparation though, you can do this and become successful in that field. Create adequate sales funnels, constantly educate yourself and research your customers, but also keep up to date with the trends and new ideas on the big ticket item markets.
Be confident, but careful. Going into big ticket sales is a big investment, but if led properly, a highly profitable one.
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