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Written By Dion Tong

Whether you are a startup or an advanced e-commerce company, the most challenging part of running a business is to find the right product market fit to maximize your profit. You are going to find what people are continuously looking for and identify customers’ needs. What is more important is that you want to improve profitability by raising the margin of each product.

In this blog post, you are going to save your time seeking and researching what higher margin products to sell since we are here to do the work for you.

Profit margin and higher margin products explained

Profit margin is based as a percentage. It is calculated through dividing profit (revenue minus expenses) by revenue and multiplying by 100. Profit margin reflects your business’ flexibility, in which the higher the margin, the more adaptable you are. For example, there are 2 companies, namely company A and B. Company A and B have a profit margin of 35% and 10%, respectively. Imagine if the labor cost for both companies increase by the same amount, company B might no longer have profit while company A still manages to gain. You want to keep your expenses as low as you can to keep your profit margin high so that your business is more flexible to changes.

Higher profit margin also means your business is more profitable; therefore, people prefer higher margin products. These products enable you to generate more income even if you don’t have a large sales amount. Higher margin products are great for all retailers, especially for startups. Small or less experienced companies do not have a large inventory space and sales volume, so they make a profit depending on high profit margin products or profitable products.

Criteria for choosing higher margin products

You might wonder what features or criteria to look for when finding higher margin products. There are 5 key points to watch for.

Low cost

Obviously, products with low cost bring more returns. They generate the most profit and maximize your profit margin. Low pricing products allow you to set a higher markup. Goods like eyeglass frames, bottled water, books, to name a few, have an extremely high markup average.

Small size/ lighter

Whether you are using self-fulfillment, 3rd party fulfillment, or drop shipping, you would like to keep the inventory or fulfillment cost down. Fulfillment cost varies by storage sizes, product types, destinations you ship to, delivery fee, etc. If you have a budget for fulfillment cost, you will spend your money on a large number of items that occupy fewer spaces than selecting a small number of bulky goods to increase the sales volume. For instance, the smaller and lighter the size your products are, the higher the profit margin you can have.

High rating

You have to strike a balance between cost and quality. Low pricing goods might have bad quality; your customers get disappointed with their products and never purchase from your store again.

Products in high demand but low supply

Products in high demand are usually goods that are on-trend, in which a lot of customers look for them. To find trending products, you can study the popular items list on e-commerce platforms such as Amazon and Shopify. By keeping an eye on Google trends, blog posts, social media platforms, like TikTok and YouTube, you will find what products are hot. Complementary products for new item launches are of high demand but low supply. A lot of people are looking for PS5 games recently, given that the PS5 was just released.

In season

You would be able to boost your sales if you sell seasonal products. In particular, selling party stuff when there are festivals or holidays, stationary for the back-to-school period, seasonal fruits and vegetables, gifts for Mother’s Day and Christmas, to mention a few.

On top of the many items we’re about to uncover for you, go ahead and read up on how to manage your inventory once you’ve chosen which products to add to your range, as well as how to build out a product line if you already happen to be producing some of the items listed below.

40 higher margin products to sell online

Here are 40 high products with high profit margins. People have been forced to stay home due to the pandemic. That’s why we will mainly include home decorations to keep your customers’ house cozy, stationary for working from home, kitchen furniture or tools, sports equipment that enables people to train at home, and beauty or health products for women to glow up during quarantine.

Without further ado, let’s take a look at these cheap and profitable items to sell!

Home decorations

1. Artificial plants

Compared to real plants, artificial plants are high margin items that always look healthy and do not require any effort to take care of. These plants refresh and energize living spaces.

Pros:

  • Low cost
  • High markup price
  • Most profitable things to sell

2. Fairy lights

Decorative fairy lights brighten your room or garden and create a cool and aesthetic environment for better ambiance. This product is a trendy room décor item for teens.

Pros:

  • Profitable products
  • Easy to store
  • In trend

3. Wall decorative stickers/ Wall decal

Wall stickers are products with high profit margins. They are removable stickers for the wall that help to adorn and beautify boring houses. There are various decorative stickers, such as plants and flowers stickers, photo frame stickers, glowing or cartoon stickers for kids, etc.

Ensure that you source quality wall stickers since bad ones would damage indoor walls when your customers want to peel them off.

Pros:

  • High markup price
  • Take up little inventory space
  • Low delivery cost

4. Picture Frames

Picture frames help to hold and display paintings, photographs, posters, and kid’s drawings. According to Amazon’s picture frames department, black wood frames are the most popular, with prices ranging from USD $10-50.

Pros:

  • High markup price
  • Easy to store and ship

5. Throw Pillows

Besides supporting your back, decorative or throw pillows add a finishing touch that accessorizes your basic living space and heightens its comfort. There are variations of cushion designs, with the hottest styles including floral prints, pop art, patterns in vibrant hues, bohemian, and shag.

Pros:

  • Lightweight

6. Accessory plates

When you have too many accessories and wonder where to place them, accessory plates, or decorative plates, are what you need. The price of these plates varies according to their designs and materials used. However, cheap ones also look great and add an accent to your desks, coffee tables, and side tables.

Pros:

  • Low competition
  • Profitable products

7. Candles

Burning candles can relieve stress and create a calm atmosphere. Based on research, lavender scented candles are the most relaxing. Candles also keep your house warm during winter and they are a common Christmas gift choice.

Pros:

  • Popular gift choice

8. Humidifier

Similar to candles, humidifiers comfort your home and add moisture to the air. You can also sell humidifier fragrance and oil scents together with the product. All these higher margin products enhance sleep quality and jazz up your bedroom.

Pros:

  • High markup

Stationery

9. Party supplies

We party less than pre-coronavirus, but we still got to celebrate holidays and birthdays at home. There are many party supplies you can sell, including party hats, balloons, birthday candles, plastic utensils, gift wraps, etc. You are advised to have themed decorations for specific holidays.

Pros:

  • Low cost
  • Easy to store and ship

10. Notebooks

Journals and notebooks are essential school items for students. Teenagers, especially girls, love notebooks with cute prints such as inspirational quotes, geometric shapes, floral, doodle patterns, etc. You can launch a large variety of notebooks during the back-to-school season since lots of customers will be looking for them.

Pros:

  • Easy to store and ship
  • Necessity
  • High profit margin products

11. Desk organizers

Desk organizers are trays for dividing various stationaries and keeping them tidy. The most common types of organizers are made of leather, acrylic, wood, and mesh. This product makes your desk and drawer look cool, stylish, and organized.

Pros:

  • Great markups
  • Profitable items to sell

12. Colored pens

Colored gel pens, fine point markers, and colored pencils are great for bullet journals and planners. They are also for kids to create their masterpieces. Retailers should source colored pen sets since no one will buy each color separately from an online store.

Pros:

  • Easy to ship and store

Sports equipment

13. Jump ropes

Jump roping is fun, easy to learn and burn loads of calories. There are various types of jump ropes in the market. According to Amazon, jump ropes for fitness or workouts and soft beaded jump ropes have the largest sales. Search results for “jump ropes” increased dramatically in 2020, according to Google trends. The major reason for such a significant rise is that gyms are closed due to coronavirus restrictions, and people have to do workouts at home, in which jump roping is one of the best exercises.

Pros:

  • Low cost
  • Easy to ship and store

14. Resistance bands

Exercise bands are elastic bands for strengthening your legs, arms, and legs. This product is another muscle building and versatile fitness tool that athletes can use at home. It is anticipated that the global resistance bands market will rise at a CAGR of 9.91% in 2020-2025.

Pros:

  • In demand
  • In trend
  • Profitable items to sell
  • Easy to ship and store

15. Yoga mats

Yoga is continuously gaining popularity, especially among women, since it brings a lot of health benefits and is great for sports beginners who would like to start with less intense exercises.

To market this product, you have to highlight the advantage of purchasing a yoga mat. The best aspect of yoga is that it can be done everywhere, and all you need is yoga mats.

Pros:

  • Easy to store

16. Women’s leggings

The rise in women’s participation in sports activities has lifted the need for women’s sportswear, specifically leggings. Among Amazon’s top 10 best sellers in the sports and outdoors category, 3 of the products are women’s leggings. It is to expect that the leggings trend will go on.

Pros:

  • Lightweight
  • Easy to ship and store

17. Water bottles

People prefer using reusable water bottles since they are more aware of environmental problems nowadays. Reusable plastic water bottles for sports are the most profitable things to sell as they are relatively low cost to produce compared to steel or mag bottles.

Pros:

  • Cheap products to sell
  • Easy to ship and package

Kitchen furniture and tools

18. Cutlery

Dining out and social gatherings are fun. However, people still prefer staying home and inviting their friends over in this situation. Therefore, they need more cutlery for their visitors. Meanwhile, the “bring your own cutlery” trend is rising due to people’s consciousness towards the plastic crisis.

Pros:

  • Easy to manage and store
  • In demand

19. Innovative kitchen utensils

More people are cooking at home recently, again because of the pandemic. They are looking for innovative cooking utensils that increase efficiency. For example, potato mashers, herb scissors, egg separators, vegetable slicers or cutters, and garlic peelers. Since they are affordable and many of us find them novel, these utensils are likely to trigger impulse buying.

Pros:

  • Easy to manage and store
  • High profit margin products
  • In demand

20. Lunchboxes

Packing your own lunch is healthier and is good for kids. To ensure that the food is fresh and will not spill out during transportation, people need high-quality lunch boxes. Smart and electric food warmer boxes are definitely good options for them. However, they are quite pricey with a high delivery cost. Retailers can consider selling lunch tote bags as they are stylish and fashionable.

Pros:

  • Low competition
  • Products in high demand but low supply

21. Baking tools

Baking has become a new interest since people are staying home more often.  Therefore, baking equipment is in high demand. You can create a tool kit or package by combining tools for a specific recipe to make your products more consumer-friendly.

Pros:

  • Easy to manage and store
  • Growing demand

22. Kitchen mitts

Kitchen mitts and gloves are necessary for oven recipes and are cheap products to sell. They can protect your hands from hot objects, in which silicone is the best material.

Pros:

  • Most profitable things to sell
  • High markup
  • Easy to store and ship

Health and beauty products

23. Peel off masks

Because of influencers and bloggers, peel off masks are trending right now and are likely to go on next year. These masks perform basic functions such as cleaning your pores and brightening your face. Its popularity is due to the satisfaction it brings when peeling off.

Pros:

  • In trend
  • Easy to ship and store

24. Facial masks

Facial masks are necessities for most of us, especially women. People prefer purchasing face mask combo packs from online stores, as suggested by Amazon’s best sellers. You might consider selling discounted packages to attract consumption.

Pros:

  • Necessity
  • Bulk purchasing

25. Cosmetic bags

Girls need nice makeup bags to hold all their cosmetic products. According to various blog posts, the trending bag designs and materials include holographic, quotes, minimalist patterns, bright solid color, and leather. Cosmetic bags are high margin products to sell online since you can get them at a low cost and greatly mark up the selling price.

Pros:

  • High markups
  • High margin items

26. Teeth whitening strips

Among all the teeth whitening products, teeth whitening strips generate the largest sales since they are affordable, easy to use, and effective. With micro-influencers’ promotion, these strips become must-haves all of a sudden. Bear in mind that you should source enamel-safe strips as unsafe ones will damage your customers’ teeth.

Pros:

  • In trend
  • Lightweight

27. Bath bombs

Bath bombs are colorful balls with beneficial ingredients and a pleasant scent that dissolve in water. This product triggers impulse buying since it is affordable and is popular among both teens and adults.

Pros:

  • Gift choice
  • High margin products to sell online

28. Nail polish

Getting nails painted and manicured helps to give a better impression. Right now, the biggest nail color trends are baby blue, dark teal, light grey, glitter, and nude.

Pros:

  • Lightweight
  • Bulk purchase

29. Skincare products

Selling skincare products is profitable. Thanks to micro-influencers and bloggers, people are continuously seeking ways to perfect and clear their skin. Among all the skincare products, acne cream, cleansers, hydrating cream, and brightening essences are the most used.

Pros:

  • Great gift choice
  • High demand

Toys and games

30. Themed toys

The sales for toys always depend on cartoon shows. The search results for TV and movie character toys accounted for 17.2% of the total “toys and hobbies” search on eBay. The most popular characters and collections include Winnie the Pooh, Frozen, Star Wars, and Toy Story. You can always source character figures, toy weapons, and collectibles based on these cartoons or ongoing movies to have a higher profit margin.

Pros:

  • In demand
  • Easy to spot the latest trend for themed toys

31. Plush dolls

Plush toys or stuffed dolls are the best toys for young children since they are soft and fluffy. Stuffed animals like elephants, dinosaurs, and puppies are the most common choices. Kids also love themed plush dolls, in which the best sellers are characters from Disney.

Pros:

  • Lightweight
  • High markup

32. Board games

Nothing is better than playing board games with a group of friends during parties. The hottest board games in 2020 include Catan, Sequence, Clue, Guillotine, Villainous, and Azul.

Pros:

  • High markup

Clothing and accessories

33. Pajamas

Since we are spending more time at home, we need to get new sets of pajamas for ourselves and our families. Retailers can offer couples sleepwear and family pajamas. Matching festive jumpers and pajamas for families are in great demand since parents want to get their kids excited, so remember to make use of holidays to boost your sales. For daily pajamas, silk and solid color sleepwear sets are in trend.

Pros:

  • Necessities
  • Easy to ship and store
  • High margin products to sell online

34. Bracelets

It is hard to find good quality and affordable bracelets in a physical store. Therefore teenage girls look for them from online stores. Trendy bracelet styles could be found easily on social media platforms. Bracelets are higher margin products that generate large sales as long as you market them well. You can include nice photographs of bracelets placing on coasters or with chic backgrounds on your website.

Pros:

  • Easy to find the latest styles
  • Take up a little inventory space
  • Very high profit margin with strong marketing

35. Patterned socks

People usually wear these cozy and adorable patterned socks at home, particularly when the weather is cold. They can also be part of a party dress code and accessories; you can select festival themed printed socks when there are holidays. The production cost of these socks is low but can be sold in a high price if you can find socks with great designs and good quality.

Pros:

  • Easy to ship and store
  • Popular gift choice

36. Phone cases

In this technological world, phone cases are in high demand since everyone has a smartphone. Smartphone cases are high margin items with great mark up, especially those with trending patterns printed on, such as floral, floating glitter, botanical, marble, and bold patterns.

Pros:

  • Cheap products to sell
  • Easy to ship and store

37. Scrunchies

Scrunchies were in fashion earlier this year. It is noticed that the trend is decreasing lately, but scrunchies with a bow and twill scrunchies are still worth buying.

Pros:

  • In fashion
  • Small
  • Lightweight

38. Headbands

Headbands are one of the must-have hair accessories in 2020-2021. They make you look modish and elevate your outfits. Leather, embellished, padded, and workout headbands are the latest vogue.

Pros:

  • In trend
  • Extremely high markup for good quality ones

39. Tote bags

Tote bags are stylish and highly functional at the same time. People bring tote bags to the beach, school, work, and mall. The cost of tote bags is low, so you can make a huge profit from selling them.

Pros:

  • In fashion
  • High markup

40. Enamel pins

Enamel pins are accessories that attach to jackets and bags. These pins embellish your clothes and make them unique. The most popular pin designs are food, animals, logos, and plants.

  • Small
  • Lightweight
  • Bulk purchases

Conclusion

After gaining some insights about products with high profit margins, you are ready to create your own online store and get to selling. Don’t forget to download TradeBeyond and source the best products from great suppliers. Good luck with starting your e-commerce business!

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