To find products with high margins, you need to review all of the costs associated with production and selling the product, and compare them to the prices that other sellers are currently charging customers for that item. However, this process can take some time if you do it manually. Also, when choosing products to sell, you need to consider not only margins, but several other additional factors as well.
In general, when searching for a product, it’s essential to follow these steps:1. Collect potential product ideas.2. Avoid low priced items
, as they usually have low margins. Instead, focus on products in the price range of $30-100.3. Explore the production price of each product.
Choose items whose original cost does not exceed 30% of the price for which you can sell them.4. Analyze product demand.
See if the product has stable monthly sales: a good number is more than 100 sales/month. Also note whether the product is seasonal or not.5. Check the competition.
The more sellers there are selling a similar product, the less sales you will get. Plus, you'll need to spend more on advertising to outsell your competitors, and that will hurt your margins.6. Estimate revenue.
Multiply the number of products sold each month by their price.7. Estimate additional costs for the product
8. Determine the net profit margin percentage
- Calculate shipping and storage costs based on product size and weight.
- Calculate the marketplace fees for selling and fulfilling the product orders.
- Estimate any other costs. Depending on the type of business you have, you may incur additional costs on advertising, taxes, packaging, and other expenses.
for each product. Subtract all costs associated with the purchase, delivery and sale of goods from the monthly revenue, and divide by the revenue.
If the resulting value is greater than 20% and the product meets all other criteria, this could be a great option for your online business.
If you do not have enough time and expertise to research products this way, you can entrust this responsibility to skilled professionals. Once you’re ready to begin your eCommerce business and you need help selecting a product that meets your criteria, consider checking out Sellerhook
With years of experience and excellent customer reviews, Sellerhhook experts have a proven track record for success. You can gain insight into the quality of their services by reading a variety of success stories and user feedback.