15 High-Profit Margin Products to Start Selling in 2021
Whether you are about to run your first online store or just want to update your item selection, you need to take a closer look at the high-margin products trending in 2021. This way, you will build the most profitable business strategy adapted to the up-to-date market and successfully compete with other e-commerce players.
In this article, we’ve gathered the hottest high-margin products that break sales records and bring millions of dollars to thousands of businesses all over the world.
But first, let’s figure out what a high profit margin product is and what you gain by taking it on board.
What are high-profit margin products?
There are two types of profit margins: net margin & gross margin. Small businesses usually use gross margin to calculate the profitability of a single item. The classic definition of gross margin sounds like this: gross profit margin is the difference between the product cost (including all expenses on shipping, seller fees, marketing, etc.) and its retail price. In other words, if you sell a product for $70 while it costs you, let’s say $25, your profit margin is around 36% ($25 divided by $70).
What profit margin is estimated as high? Unfortunately, there are no global best profit margins. Products and their niches vary and have their specifics. However, as a general rule, a 10% profit margin is considered average, a 20% is deemed valid, and starting from 30%, the profit margin is recognized as high.
How to find high-profit margin products to sell?
It’s hard to overestimate the skill of finding and picking up the most winning products for your retail business. Of course, you can always google for “high-profit margin products” or “high-profit items to sell,” but the lists with bestsellers are not being updated as regularly as one would like. That’s why knowing how and where to look for potentially profitable goods is already half deal. We offer four simple ways to hunt for juicy products for your online store.
- Get inspired by social networks
Millions of people share their beloved brands and products via social networks daily. It doesn’t matter what product niche you are interested in; we recommend monitoring groups, hashtags, and hyperlinks to learn more about high-profit margin products that are trending at the moment, as well as about your potential audience.
- Utilize Google Trends
Google Trends is a handy free-to-use tool that helps merchants and online marketers determine what products their customers are interested in. The tool is indispensable for strategic planning as it helps get actionable insights, sheds light on popular products, and lets marketers make data-driven decisions.
- Monitor commerce platforms
E-commerce giants like Amazon or eBay always show collections with trending items and bestsellers to prompt their visitors for more purchases. Considering these product recommendations, you will get priceless insights into the most popular and higher-margin products.
- Analyze competitors
By regularly monitoring your rivals, you’ll not only keep your fingers on the pulse of the recent trends but determine which high-profit items to sell are offered in excess. High competition creates prerequisites for price regulation. That’s why if the market is overloaded with a specific product, you’ll hardly be able to set a comfortable price to reach the desired profitability. So, to effectively capitalize your goods, choose the items with a high search volume and a limited or zero offer.
And now, it’s high time to take advantage of our list with high-margin products that will help you increase conversions and boost your income.
When it comes to profitability, jewelry remains one of the most popular products for online retailers from all over the world. According to Capitalcouncelor, $38,23 billion is the value of the jewelry market in 2021.
Customers willingly buy earrings, bracelets, necklaces, and other stuff throughout the whole year. What’s the secret? The recipe of success is obvious and consists of two components: a well-prepared market plus independence from seasonality. Moreover, jewelry seems to be an ideal product for merchants as it requires little space to be stored and is easy to ship. Simply pick up the most trendy collections and find the appropriate places to sell.
Therefore, if you want to start selling high-margin products, jewelry is a perfect choice. And Besides Shopify or BigCommerce, undoubtedly the best options to host your products, we recommend powering your marketing strategy with Instagram and Pinterest.
Selling watches is a juicy option for drop shippers to squeeze more from the e-commerce business. The market offers tons of watches for any budget, from smartwatches to analog, casual, or beauty-crafted ones.
With smartphones at hand, customers tend to treat watches more like a fashion accessory than a device for time tracking. And this tendency has immediately been reflected in the market’s offer. So today, retailers splash an unprecedentedly rich offer to store visitors trying to meet even the pickiest customers’ needs.
And while trading watches is a low-risk strategy for a newbie drop shipper, as your business is growing, make sure to pay careful attention to customers’ reviews and order volumes to pick up only high-margin products for your online store.
3. Skincare products
Have ambitions to build your business empire on skincare products? It’s a wise decision indeed. And here we have only good news for you. Experts believe in the sustainable growth of the skincare products market. As long as brands are ready to commit to innovation in production and marketing, the industry will continuously show significant results, bringing guaranteed profit to its players.
So, if you dream of expressing yourself via your product assortment and services, this is a perfect time to implement your unique vision in packaging and promotion with all types of skincare products.
4. Makeup and beauty products
Makeup stuff, nail art, and hair care goods are acknowledged as some of the highest margin products on the Internet. No wonder they create very fertile ground for your online business as beauty products are easy to showcase, package, and ship with many sub-niches to choose from.
If it’s raining outside right now, somewhere, the sun is shining. It means that with sunglasses in your high-margin items to sell list, you’ll never lose the game. Sunglasses are a safe choice for everyone who is aiming to start an e-commerce business but not quite sure what to sell. On top of that, by partnering with a reputable dropship supplier, you will not only ensure stable profit growth but financially prepare the ground for new high-margin products to appear on your website.
6. Toys for kids
Kid’s toys have always been a nightmare for parents and a gold mine for merchants. Yes, toys are forever, and you’ll never go wrong with launching an online store full of products catering to childrens’ needs.
But keep in mind that this is an extremely competitive business niche, and you’ll have to do your best to stick to the highest quality standards and stand out of the crowd.
7. Women’s Apparel
We bet every other online merchant has been thinking of clothing-related business. Well, numbers speak louder than words. Statista reports that revenue in the women’s apparel segments equals $165,378 million in 2021, and this is in the US alone! But since you enter the competition among thousands of other online apparel retailers, make sure to pick a niche where you can enjoy the consistent demand, fitness apparel or designer lingerie, for instance.
8. Pet Care Products
Pet care supplies gain their rightful place in our collection of high-margin products. As people usually treat pets as family members. And their owners are ready to spend a fortune on everything from the basics like pet snacks to expensive toys and professional grooming equipment. Enterperneur.com asserts that the average profit margin for pet care products is about 60%, and the demand won’t reduce in the measurable future.
9. Fitness equipment and services
Since COVID-19 has imposed its new rules of life for millions of people worldwide, depriving them of the possibility to visit public places freely, including fitness centers and gyms, they’re looking for ways to stay active at home. While some of the sports products are hard to ship because of their size and weight, there are still a great variety of high-profit items to sell that enjoy popularity. Just take a look at the list below to pick higher-margin products for your website in the sports & fitness niche:
- Small barbells
- Yoga mats
- Exercise apparel
- Water bottles
- Jump ropes
- Pilates balls
- Portable exercise equipment
You can also provide intangible products like online lessons, exercise routines, or meal plans.
10. Info Products
We’ve already mentioned intangible products above. But the niche of such products is much wider and is not limited to fitness only. Shopify suggests one can sell things other than physical items through their platform. Intangibles have several obvious advantages, and the most sound of them — zero shipping cost. Be it an online master class or a skincare routine checklist created by a beauty consultant, just pay and download them in seconds. That’s why this type of product will definitely remain on the high-margin products list for a long time.
11. Phone Accessories
Smartphones are great products to sell per se and have become a rich source of complementary high-profit items to sell, such as mobile cases, earbuds, headsets, etc. Besides, by releasing new phones every month, manufacturers provide sustainable demand for accessories as well.
As soon as smartphones continue conquering the planet with about 3.8 billion users predicted for 2021, we can only guess the number of phone accessories that online merchants will sell.
12. Fairy Lights
Finally, we’ve decided to list some high-profit items that would hardly come to mind when you think of high-margin products. Yes, fairy lights have always been on the market. There is nothing novel. But why is their popularity still growing? Their search volume equals 52,000. Who could have thought! The numbers impress.
And we guess that Instagram, Pinterest, and other social networks are also at play here. Millions of users tag their pictures with #homegoals (including fairy lights!). People like, share, and pin pleasant-looking posts daily. Moreover, social platforms raise customers’ interest (this living room is so cozy, I want mine to look like that too!), contributing to demand.
13. Bamboo Toothbrushes
Want to draw new customers to your store? It’s high time to come to the bright side and go green! Luckily, being eco-friendly has been a robust trend for the last decade and won’t going to fade away. Thus, filling your store with ECO products is a good investment in your future prosperity, especially if the green approach aligns with your brand philosophy.
Bamboo toothbrushes are only one of the thousands of biodegradable products that nowadays are being swept of the shelves in minutes. They enjoy great popularity among customers, easy to ship, and require to be changed quite often, which makes them the perfect match for our list of high-profit margin products.
Important! While choosing high-profit items to sell with a low price point like a toothbrush, get ready to sell them in considerable quantities to make a decent income. That’s why we recommend varying your products list and, along with cheap goods, power your selection with products between $15 and $50.
14. Aromatherapy Purifiers
With an average margin of 65%, a relatively short list of brand names to compete with, and customers willing to pay $25+ for the item, these gadgets seem to be a real catch for any drop shipper. However, selling such season-dependent devices requires some strategic preparation if you want to stock them up appropriately and timely sell out.
15. Needlecraft Patterns
And last but not least, meet needlecraft patterns. Why? Everything is as easy as can be. In tough times, people tend to do something that calms them down, reduces stress, and keeps their minds active. And all types of handcraft perfectly do the job.
The vast array of needlecraft activities include embroidery, needlepoint, tatting, knitting, crocheting, etc. Therefore, you can experiment with different needlecraft kits to find the ones that satisfy your audience the most.
Now, when you’ve learned more about the most trending products to sell in 2021, you can easily update your store catalog, filling it with high-profit margin products.
But to survive in the severe e-commerce world, you can’t rely solely on the product’s selection and ignore additional marketing activities like cross-selling and upselling campaigns, personalized product suggestions, retargeting, email campaigns, and many others. Wisely combined and applied consistently, all these marketing tools will help you earn your place in the sun.
We hope our list of high-margin products helped. Are there any items you would like to add to the list? Please share your thoughts in the comments.