It’s a new year, and while it may not be quite a new you, it can be an opportunity to explore something new. While the last year was unexpected, one thing it brought to a new height is eCommerce.
Digitalcommerce360 and Statista, state that in 2020 alone, online shopping grew a staggering 40%, with sales grossing over $800 million dollars. Online retailers made 22% more than the last year, making it the most profitable year in eCommerce history. It’s safe to assume many online sellers with high profit margin products made bank last year. No wonder the king of online shopping was the richest man in the world.
This year, you too can get a piece of this gigantic pie by selling and high profit margin products. Let’s find out how.
[Skip to the list of 12 high profit margin products]
What is a high profit margin product?
Profit margin or net margin is the difference between the product cost (all expenses considered) of a product and the price you sell it.
A high profit margin product is an item with a huge net profit after all business expenses are considered, without discouraging the target customer.
The ticket to a high profit margin is in the gross profit calculation. You take into account all your seller fees, for instance, product cost, shipping costs, online store costs, your marketing budget, the time you invest in all of these tasks, and of course, your income tax. Setting the right price involves very little guesswork and should be determined by data.
Once you have accumulated all the business costs, you can calculate the percentage profit fit for a high profit margin product According to Salehoo market research lab, as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered good, and a 30% margin is considered high.
DISCLAIMER: This example is not based on real gross costs. It is purely purely hypothetical and is not an indicator of the exact price you should sell a small duffel bag.
The product: Small Duffel Bag
We want to sell a small size duffel bag within the USA, from a print provider based in the US. Let’s say the average prices for a small duffel bag on our chosen marketplace is $40 – $60. This means our retail price should be within this range.
Prices to consider:
Initial Product cost
With Printify Premium
For small bag within the US (Added here so that we offer free shipping)
Payment Transaction charge
Our Profit Margin markup
Using the Shopify Gross Profit Calculator, we can now determine the retail price.
The price is within the average range on the marketplace meaning we can go ahead and sell.
Factors to consider when selecting a high profit margin product
Paying attention to what the market is willing to spend for your items is essential in setting prices that are not too high or too low for your customers to bear. You can achieve this by doing a quick research of how much the average cost of the product is on the platform you are going to sell it.
For instance, if you’re selling a canvas duffle bag on Etsy, the average price is about $54. This means that if you price it too high, say $200 or too low i.e. $40, you will be working with a disadvantaged margin even after you factor in all other product costs such as shipping, marketing and labour. You can find the balance by selling products that are low cost or high value for higher profit margins.
High profit margins allow your business to be profitable per item, while smaller margins make you work hard for less. You can also create perceived value in a product through branding, marketing, and product designs to make them higher margin products.
Pro Tip: Use the Shopify gross profit margin calculator to determine your profit margins and pricing.
When selecting a high profit margin product, it is important to consider customer response carefully. Do they want the product? Will they buy the product? Is it worth it?
While selling a t-shirt for $200 will give you an extremely high profit, no one in their right mind will be willing to buy a $200 t-shirt and especially not online. On the other hand, if you have a product whose product cost is $0.90, let’s say a spoon, selling it at $1.90 may seem like a high profit margin. However, for you to make a decent living, you’ll need to sell a whole lot of spoons, requiring a lot more work. Thus, these two margins are not ideal.
Let’s say market price for a t-shirt is $25. If you choose to sell it for $50, this is still a comfortable price especially when you enhance its appeal by building a brand that has a higher perceived value i.e in streetwear. But then, your demand will be less, leading to a lower number of sales. You could also choose to sell for $15, which will also reduce the perceived value or your brand, meaning your overall profit will be low and you might have to work harder to seem valuable.
Finding the most competitive high profit margin products to sell online will require research into the type of product you want to sell, how much the product is currently selling at, and what profit margin makes sense to both you and your customer. After all, profitability is the key to success for any eCommerce business.
In 2021, it is important to consider trends when selecting high profit margin products. Yes, trends can be fleeting but they can also be a gateway to fast-selling high profit products.
While basing your entire business model on trending products can become a wild goose chase, it is always a good idea to make sure the products you are selling are in demand. Thus, like with everything else in life, finding the balance is key. For example, having a healthy mix of designs that sell year-round and designs that are based on current trends.
Pro Tip: Use Google trends or check out bestsellers on Amazon and eBay to find trending products in real-time.
10 high profit margin products to start selling today
1. Unisex All-Over-Print (AOP) clothing
This is the generation of breaking gender norms and in doing so, more unisex clothing is in. The more inclusive and less gender assigned clothing trend includes items such as t-shirts, hoodies, sweatshirts, and pants. The unisex trend has been defined as “fashion-forward” and has seen a steady increase in demand over the last few years.
Source: Google Trends
All over print clothing has been a welcome addition to the print on demand industry because of its large print area and higher profit margins. All over print t-shirts, hoodies, socks, bomber jackets, and sweatshirts are already being sold in print on demand stores globally. The AOP outerwear especially can be a great high profit margin product for your store.
2. Yoga leggings
At first glance, the product cost of yoga leggings may seem expensive, but it is one of the products that sell extremely well when paired with a unique and appealing design. Because of their structural build which allows for great support in high-intensity activities, yoga legging can also be marketed as sportswear in addition to “athleisure”.
They sell even better if they cater to a very specific niche that allows the customers to express their interests and personality, e.g., the spin class or the CrossFit crowd that is infamous for being hyperactive and hyper enthusiastic. If your business has a very unique niche and great designs, you can quickly earn as high as a 30% profit by selling these designs on Yoga leggings.
3. Face masks
In 2021, it is not a surprise that facemasks are the trending product. Although compared to their product cost, masks may not seem like a high profit margin product, you can raise its perceived value by how you design and market it.
Facemasks are currently offered by most print on demand platforms and pose a great opportunity for making a lot of profit. Another brilliant way to increase your average order size (AOV) and profitability is to bundle. Sell masks with similar or identical designs in sets and market them as matches that should be bought together. You can choose to start with facemasks alone this year but pay attention to the trend spikes as they happen, to know when to diversify your catalog.
4. Unisex watch bands (e.g. Apple Watch)
As one of the most gifted items globally, with serious demand peaks around every holiday, accessories have always had a high perceived value. In keeping with current trends, unisex jewlery, digital watches and accessories have become very popular in the last few years. Coupled with the need for personalization of higher-end items, the custom watch strap has become a high margin print on demand favorite.
The Printify custom watch strap fits the Apple watch series 1 to 5. And with the right design, people who already pay hundreds of dollars for Apple products will be more than willing to pay extra for these straps. The custom wristwatch band is a great gift item, and is an accessory that becomes more valuable after customization. Other high profit margin unisex accessory products are necklaces, earrings, and bracelets.
5. Duffel travel bags
It’s safe to say last year was the year of the great indoors. Many of us cannot wait until we can freely roam the world again. Maybe it’s our collective hope for travel or simply finding new ways to make short more meaningful trips. But for whatever reason, duffel travel bags are currently experiencing a rise in demand as compared to last year.
Either way, this should be your cue to market duffel travel bags of your own this year. Especially because luggage is also a great opportuning to increase your average order size (AOV) and profitability by bundling because people are willing to buy travel bags in sets of different sizes. Travel duffel bags are not low cost but with the right design, they can be a great high profit margin product and a very lucrative business niche.
6. Premium canvas prints & posters
Artists around the world have discovered they can sell art online with print on demand. Art can be priceless, it just needs to speak to the right audience. You can find a very specific niche and sell products as high as you want, all because of your unique design and artistic brand. That’s why canvas prints and posters can be a well-worth it high profit margin product for you to try in 2021.
Source: Google Trends
Often, what you need to take your business to a higher level is a well-defined niche that makes your product so appealing, people are willing to pay good money for it. A good example is the easily recognizable posters by Shepard Fairy who created the Obama campaign “Yes We Can” and “Hope” posters. His posters are exorbitantly high profit margin products. But we cannot all be Mr. Fairy, so here’s a closer-to-home example; Take this case study for example – this retailer found a few niches for their canvas prints and posters that they extended to their social media. They made sure their marketing is aligned with each type of customer they targeted. The result, an estimated revenue of over 400,000 US dollars!
7. Wall tapestry
The custom tapestry was declared the most versatile product on Society6, a popular and respected platform for artists to showcase and sell their work. So how did this seemingly retro product suddenly become such a high profit margin product, only the mandala enthusiasts know but we are happy for it.
Source: Google Trends
Wall tapestry demand is on an upward trend and sells at great prices which is good news to any seller who wants to add them to their store. If you are new to print on demand, the ease and versatility of wall tapestry designs is a great way to get your feet wet. And hopefully, once you are comfortable with the business, you can venture out to other home and living products on this list.
8. Throw pillows and covers
Home and living products have seen a spike in demand over that last year. Probably driven by everyone being cooped up inside, which makes people want to create a more cozy home environment. One of the easiest ways to change your home decor is by simply adding a throw pillow or changing pillow covers. Therefore, making them very popular high profit margin products. In fact, the overall pillow market is anticipated to rise at a considerable rate by 2026.
Source: Google Trends
How much can a throw pillow sell for? Well, as much as your customers see the value of your designs. While it might be hard to charge extravagant prices for throw pillows and pillowcases, they can be great high profit margin products to try out this year.
Following on this home decor trend, blankets are a popular home decor product that can be added as a matching bundle together with pillows. From duvets in the bedroom to throw blankets in the living room, it is no wonder they are a high profit margin product in online retail. The online searches of blankets have seen steady growth in the past few years, making them a popular print on demand products.
Maintaining a steady level of popularity means that blankets are in demand all year round. Which is a good thing for sellers looking for a steady income regardless of trends. Sellers who successfully curate a niche for blankets can enjoy a substantial and steady flow of high profits. And more so if the bundle their blankets with adjacent products such as pillows and pillow cases.
10. Shower curtains
Boring shower curtains are no longer wanted, as illustrated by the constant and rising demand for fun artistic shower curtains. In fact, as one of Printify’s successful sellers realized, they can be quite the ideal high profit margin product for your business. Due to the rising demand for unique shower curtains, you have a lot of rooms to experiment with your designs.
In line with the demand for everything home and living going up, shower curtains have witnessed a surge in the last five years. According to Technavio, the shower curtain retail market size will grow by $1.9 billion by 2023. If you are a fan of cool large-scale art, try the shower curtain as your canvas and make this profitable product the bestseller item in your store. Try bundling it with similar products such as the Printify bath mats to boost your sales.
11. Unisex T-shirts
A Printify bestseller for years, the Bella+Canvas 3001 Unisex t-shirt can be a great high profit margin shirt. The trick is to design it for a specific niche and audience that will want to wear it. A common target niche is the “mom” and “dad” niche.
Take this Etsy seller, for instance, who has an attractive price on this bestselling t-shirt and has made over 70,000 sales in her store so far. With Printify Premium, the Bella+Canvas 3001 Unisex t-shirt sells from $5.91 + shipping, which means you can sell this shirt for under $25 and easily earn $10 or more on every sale. That makes it a lower cost high profit margin product.
Perhaps an unexpected but understandable high profit margin product hit for 2020 has been the Printify mug. Maybe it’s the sitting at home sipping on some tea year, but this is easily the cheapest mug on our catalog. In fact, last year, the Printify mug made the list of profitable product ideas to sell on Etsy.
Pro Tip: The Printify mug is popular and easy to design, which means you can confidently create new products every day which is one of the best ways to keep yourself visible on an eCommerce platform.
Where to sell your products
Picking an eCommerce platform to host your online store can be challenging, depending on what you’re looking for. So here is a quick rundown of the most popular eCommerce platforms, that are already integrated with Printify for you to consider;
Etsy is a great online marketplace for print on demand items with “home-made” aesthetics and is a popular choice for at-home artists and DIY crafters. Sellers on Etsy will often need unique selling points that set them apart from the thousands of products available for sale. With Etsy, you also get marketing and advertising tools that can help you gain exposure quickly.
Shopify is currently the largest online e-commerce platform in the world. It is a good choice for sellers who want a stand-alone website. This also allows for more creative freedom in the design and appearance of your storefront. With Shopify, you can also have your own domain name and get access to advanced sales metrics and analytics.
BigCommerce is the leading eCommerce platform in the USA and is popular for its powerful performance and custom technology which enables businesses to easily scale. BigCommerce prides itself in being the most efficient eCommerce platform in terms of both time and cost. Thus, allowing merchants to unlock their full profit potential and gain a global customer base.
Wix is the platform for those who prefer a website made from pre-customized designs. Their biggest claim to fame is their 500 designer-made templates that give you a variety of options for designing your store. You can also use their inbuilt site editor to make sure your site looks as uniquely yours as possible. Wix is usually preferred by sellers who want a very high-end look for their online stores but do not want to invest in expensive custom web development.
Other popular eCommerce platforms include eBay, Prestashop but if you would rather have a completely independent website, the Printify API is another great option.
Design your high profit margin products right now
Do you have a Printify account? If not, let’s quickly fix that because you will definitely want one. Why? Because with a Printify account, you get access to a catalog of more than 300 products AND a completely free mockup generator, that even the rookiest of designers can use easily. You won’t need costly and complicated software to start designing products for your store. With the Printify mockup generator, you can start and finish designing your products with just a few clicks of a button. Here’s how:
Pick your high profit margin product from the catalog. On the product page, you will see a list of print providers that can fulfill that product from different locations.
Click on the “Start Designing” button on the print provider of your choosing and just like that, you are now using the mockup generator.
Upload your design from your computer and make sure it meets the requirements for a high-quality print.
Every product on the mockup generator has the size requirements indicated on the user panel. After making sure you’re set for a high-quality print, place and adjust your design to your liking, within the available print areas. You may choose to preview your final product to check the placement and sizing of your designs.
Once you are happy with the way the product looks in the preview, we recommend that you also order a sample of your high profit margin product for yourself. This will give you a chance to experience the products you will be selling to your customers. That way you know exactly what your customers are receiving from your business and you can use it for marketing. You can then publish it to your store with confidence and wait for your first sale. And just like that, you’re on your way to hopefully your first high-profit margin bestseller!
Feeling confident? Great, let’s do this…
The post 12 high profit margin products to start selling in 2021 appeared first on Printify.
12 high profit margin products to start selling in 2021
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