Margin is the difference between the cost you incur for having a product and the price you list the product on your store. The margin is similar to gross profit. One reason why it is important to sell high profit margin products is to generate enough revenue to cover all business expenses and still have a decent net profit.
If you offer discounts in your store, it is probably because the profit margin is good enough to allow you to give discounts to customers. Selling high profit margin products also help you sell at more flexible prices. We consider how to find such high margin products for retail business below.
How to Find High Profit Margin Products
There are certain characteristics that high-profit margin products share. By identifying these characteristics, you can begin to point out which products are likely to have a high-profit margin and those that may not.
1. Small size
Since an increase in the size of a product increases the shipping cost, it makes sense to assume that high margin products will not cost much to ship.
2. They have ambiguous value
Most high margin products do not usually have a fixed price that customers can compare across the market. Pick products that you can charge high for and your customers will still be willing and happy to buy. Most skincare products fall into this category.
3. Timeless products
Products that rarely depreciate even after multiple uses stand better chances of becoming high-profit margin products than others. Electronics, for example, depreciate almost readily. Hence, electronics is less likely to be a high profit margin product. Compare electronics with jewelry. See the difference?
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4. They are not seasonal products
It is a common experience that season products can only attain higher markup during peak season. In the off-season, you will be forced to mark down on price.
5. They are sturdy and easy to ship
Fragile items such as glass have a higher chance of breaking during transit. Whether you are receiving inventory or shipping out to customers, the extra cost of returning damaged products will increase your costs abruptly and can force the profit margin to the low side. One way to play it safe is to pick sturdy items that are not likely to get damaged on transit.
10 Best High Profit Margin Products to Sell
We discuss below the 10 best high margin products to sell online. They cut across multiple niches so you can find those that belong to your niche.
1. Jewelry
Jewelry tops our list of high margin products to sell online. There are lots of products to think of in this category. You can consider selling unisex watches, neck chains, hand bands, pins, and many other items. The interesting part about sourcing products in the jewelry section is the large variety and types of products you can get. Here, you can make so much on fancy but cheap items.
Most women would give anything to look pretty. Having loyal customers for your beauty products empowers you to markup on new arrivals and innovative beauty products. Creams, nail vanishes, make-up kits, brush sets, hairdryers, and shampoo are perfect options to consider in this category.
3. Kids toys
This is one extremely populated niche. There are many products under this category that can be sold for twice or three times their cost price. Toys such as cars, trucks, teddy bears, and stuffed animals are a favorite choice for younger kids. It would help if you also consider more mature toys for older kids. For instance, try drones, bicycles, and electric toys.
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Sedan |
Sports Car |
Police Car |
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46096260 |
78231205 |
33746800 |
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Motorcycle
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Ride on Car
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Dune Buggy
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10542716
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00829101
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96030764
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4. Women apparel
It is no new that the average woman spends more on apparel than men. How would you love running a boutique that focuses on women's apparel only? Note that seasonal clothing items are not the main goal as they cannot remain high markup products all the time. You want to look out for apparels that will always be in use. Consider underwear, office wear, aprons, scarfs, and other evergreen clothing article you can think about.
5. Shoes
Products that have high markup potentials are readily found in the footwear niche. Remember to focus on the evergreen items, like slippers, casual shoes, office shoes, beach wears, and running shoes. They offer lots of varieties, and you can charge high and still enjoy encouraging patronage from customers. Pay attention to quality and durability, which are key determinants of success in this niche.
Pet care items are hot selling products you may want to consider because many people have pets or know someone who has. Pet owners already have an emotion that is willing to part with a few bucks for their pets' comfort. Hence, you can make two or three times your cost price on a single sale with the right marketing skills. Pet mats, collars, food dispensers, and DIY training kits are some of the most promising products to consider within this category.
There are lots of unique products to source for in this category. Wireless chargers, Bluetooth headphones, car phone stands, selfie sticks, ring lights, and tripods are some interesting products you should consider. The fact that almost everyone owns a phone makes it more likely you will get customers' attention easily.
8. Books
People who value books know that they are priceless. It is possible to offer both online and physical copies of books. Although they may come heavy and attract more shipping costs, the potential for high-profit markup is higher. You can consider selling used books and comics. You may also become an Amazon Kindle Affiliate so you can market both new and old books. Books are one of the high profit margin products to sell on Amazon.
9. Coconut oil
Coconut oil is fast becoming a staple in every kitchen. The idea that coconut oil is healthier than most other cooking oil is spreading so fast. As people become more particular about their food, you can simply supply the oil they need to make their meals healthier. Since there is a real value attached to coconut oil, you can make as much profit as you can from selling it.
10. Printer ink
Nobody likes running low on ink, especially when there are important documents to print out. Re-fill inks are easy to market as customers are less discriminatory about the brand. This doesn't overrule the need to source quality products. It simply means, if your ink works, you are good for business. The profit margin on printer inks can range from $10 to $15 with proper marketing strategies.
Conclusion
Selling high margin e-commerce products will help you keep your business profitable. It will also help you cushion the effects of some unforeseen business expenses you may have to incur from time to time.
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