21 low cost products with high profit margin potential
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Updated Feb 13 2025
The secret to success for most online businesses lies in one key factor: healthy profit margins. Your profit margin isn’t just a number; it’s the heartbeat of your online store, showing how much you earn after covering costs like sourcing and shipping.
Imagine this: you launch a standout dog shampoo, pricing it at $10 to attract buyers. But with $9 in manufacturing and shipping costs, you’re left with just $1 per sale—barely enough to stay afloat. This underscores why choosing high-margin products is essential from the get-go.
In this guide, we’ll explore how to identify low-cost, high-profit products, helping you build a store that’s profitable from day one. Let’s get started!
Main takeaways from this article:
High-profit margin products are items that you can sell for more money than you spent on sourcing costs.
To build and maintain a high-profit margin business, it's important to factor in all the costs associated with buying the goods you plan to sell in your online store.
Costs such as raw materials, product production, shipping, packaging, and even marketing are notorious for cutting into the average margin profits of most retailers.
Print on demand offers online retailers a unique, predictable approach to generating steady profit margins.
High-profit-margin products should have relatively low production costs without sacrificing quality. They should also be in demand and have a unique selling point that makes them stand out.
What is a high profit margin product?
High-margin products are those that you can sell for more money than it takes to create, ship, and promote them. The key is to find high-quality items that you can acquire relatively cheaply, customize in some way, and then sell for a higher price.
High-demand products: Focus on products from a hot market, ensuring there's a demand. This could range from fashion accessories to fitness equipment.
Unique selling point (USP): Your product should have a USP that differentiates it from others, like a foldable yoga mat that addresses the limitations of traditional mats.
Low production cost: Keep a relatively low cost for production activities without sacrificing quality, as bad reviews can quickly damage your brand. Consider using print on demand services to maintain high margins.
21 high profit margin products to start selling
Now that we've covered the basics, let's look at several products that can lead to impressive profit margins. Whether you choose to focus on one or select items from multiple categories, each product with high margins is a great bet for any ecommerce business.
1. Custom apparel
In 2023, the global online fashion market was worth nearly $700 billion and is expected to grow to $1.6 trillion by 2030. Clothes are a high-demand product that will never go out of style and can be created and sold relatively cheaply. Imagine, for example, that you created a cool design that you wanted to feature on a unisex t-shirt. If you were partnering with Gelato, you'd factor in production costs of $9.51 and shipping costs of $3.99, totaling an overhead of $13.50.
By selling each shirt for a retail price of $20.00, you could achieve a healthy average profit margin of 32.50%. Gelato offers a variety of apparel products, including:
2. Baby and children's clothing
As any parent can tell you, kids and babies always need new clothes, making them a promising choice for your successful ecommerce store. In 2024, the children's apparel market is valued at an estimated $279.30 billion and is expected to grow at an annual rate of 2.35% from 2024 to 2029.
Thanks to its lightweight nature, children's clothing is generally inexpensive to produce and ship. Whether focusing on personalized gifts for babies or kids' t-shirts featuring funny sayings, offering various products can ensure year-round sales.
To diversify your offerings, consider these products:
3. Accessories
There's a good reason you'll find accessories offered in so many ecommerce stores. They tend to have very low sourcing costs, which can lead to a nice average margin of return. According to Statista, the global accessories market is expected to generate a revenue of $667 million in 2024.
Take tote bags, for instance. In recent years, stores in many U.S. states have begun charging consumers for plastic shopping bags to encourage more eco-friendly shopping habits. Many states are even considering outlawing single-use bags, which could make the tote bag an even more profitable product.
When you partner with Gelato, you can offer your custom designs on high-quality tote bags from sustainably produced raw materials. You can even let your customers know that we use over 130 local production sites to help cut down on carbon emissions. With delivery available to 14 different countries, you can enjoy the highest profit margin clothing and other items while making the world a more sustainable place.
4. Custom drinkware
As the world continues to realize the many environmental and health benefits of sustainability, reusable water bottles are becoming an increasingly high-margin product. Unlike single-use plastic bottles, a good stainless steel water bottle or travel mug can last over a decade.
With bottled water prices rising, long-lasting drinkware is a low-cost investment that can save your customers a great deal of money in the long run. Given how long a reusable water bottle can last, many customers will pay higher retail prices for custom options that reflect their personality or style.
You'll quickly discover that the drinkware niche has plenty of high-margin products to sell online. Consider adding custom-designed coffee, latte, and lightweight enamel mugs to your online store.
5. Home decor can be a high-profit niche
The home decor sector thrives around the world, providing online sellers with numerous opportunities to achieve a good profit margin. Offering customized products, such as calendars or photo books, can enhance your revenue.
Unique wall art, whether posters on canvas or wood prints, remains highly popular. Partnering with a print on demand company allows you to sell multiple prints of your artwork without parting with the original, boosting your margins.
6. Accessories for electronic devices are great margin boosters
Did you know that the average American spends 270 minutes daily on a mobile device? Smartphones are integral for tasks like emails and GPS, so it's unsurprising that selling phone accessories can yield healthy profit margins. Offering unique designs on cell phone cases can make your products stand out, providing a profitable opportunity that's hard to beat. Given the myriad smartphone models, you can create a niche store focusing solely on phone accessories or incorporate them into a broader range of products.
Gelato equips you with everything needed to excel in this market. We offer accessories compatible with numerous Apple and Samsung devices in various styles and materials. Explore our range of phone cases, including:
7. Candles
The candles market is valued at $17.43 billion by 2031, growing at a CAGR of 3.42% in the forecast period (2024-2031). This is driven by increasing consumer demand for home decor and aromatherapy products. The rise of customizable and scented candles has further boosted sales, making them a favorite among online retailers.
Globally, candle popularity is rising, with trends favoring eco-friendly and soy-based gifts appealing to environmentally conscious consumers. Ecommerce shops find it relatively easy to sell candles due to their lightweight nature, low shipping costs, and ability to offer various scents and designs.
8. Jewelry
The global jewelry market size was valued at $353.26 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2030. High demand for personalized and fashion-forward pieces contributes to its robust sales performance, providing ample opportunities for ecommerce businesses to capitalize on diverse customer preferences.
The global appeal of jewelry is evident as audiences worldwide seek both luxury and affordable options, fueling the sector’s expansion. Ecommerce platforms benefit from the ease of showcasing detailed product images and leveraging influencer partnerships to drive sales.
9. Beauty products
The global cosmetics market has experienced incessant growth since 2004 and is forecast to generate revenues of nearly $129 billion by 2028. Skincare, cosmetics, and haircare products, especially those with natural and organic ingredients, are experiencing sales growth, providing ecommerce shops with a wide range of profitable niches.
The growing emphasis on self-care and the accessibility of diverse products through online platforms fuels the beauty industry’s global popularity. Ecommerce shops find it easy to sell beauty products due to high repeat purchase rates and the ability to implement subscription models.
10. Shoes
The global footwear and shoes market is predicted to witness a revenue of $489.1 billion in 2024, with an annual growth rate of 2.20% (CAGR 2024-2029). The increasing preference for online shopping and the continuous introduction of trendy and functional designs drive robust sales in the online shoe market.
Ecommerce shops benefit from the global popularity of shoes, catering to diverse consumer preferences from athletic to fashion footwear. Selling shoes online is facilitated by detailed sizing guides, virtual try-on technologies, and hassle-free return policies, which enhance customer confidence and satisfaction.
11. Pet supplies
The global pet care and supplies market size is projected to grow from $259.37 billion in 2024 to $427.75 billion by 2032, exhibiting a CAGR of 6.45% during the forecast period. Pet products, such as premium pet food, grooming items, and innovative accessories, are experiencing increased demand worldwide.
The global trend of pet humanization drives the popularity of high-quality and specialized pet supplies, making them a lucrative option for online retailers. Ecommerce shops find it relatively easy to sell pet supplies due to the consistent demand and the ability to offer subscription services for recurring purchases.
12. Books
Revenue in the books market is expected to show an annual growth rate (CAGR 2024-2029) of 1.58%, resulting in a projected market volume of $99.47 billion by 2029. Bestsellers, niche genres, and educational materials continue to drive strong sales, providing a stable revenue stream for online bookstores.
Ecommerce shops benefit from books' global accessibility, allowing retailers to reach a wide audience without geographical limitations. The ease of digital distribution for e-books and audiobooks also lowers overhead costs, enhancing profit margins. Leveraging online marketing techniques such as targeted advertising and affiliate programs makes it easier for bookstores to attract customers.
13. Workout gear and apparel
This industry will witness a CAGR of 6.2% in ten years and will grow to $434.7 billion by 2034. The surge in health consciousness and the trend towards athleisure wear drive strong sales, making workout gear and apparel a favorite among online retailers.
The global popularity of fitness and wellness trends contributes to the continuous demand for workout apparel and equipment. Ecommerce shops find it easy to sell these products because they can showcase versatile designs and functionality through high-quality images and videos.
14. Home office supplies
This market is projected to grow from $177.53 billion in 2024 to $198.98 billion by 2032, exhibiting a CAGR of 1.44% during the forecast period. Products such as ergonomic furniture, desk organizers, and tech accessories are in high demand, supporting online sales growth in this category.
The global shift towards remote work has increased the popularity of home office supplies, making them a stable and growing market for ecommerce shops. Online retailers benefit from the ability to offer a wide range of products tailored to various home office setups, enhancing customer convenience and satisfaction.
15. Fitness Equipment
This market worldwide generated a revenue of $46.7 billion in 2024 and is projected to experience an annual growth rate of 6.05% (CAGR 2024-2029). The increasing awareness of health and fitness and the convenience of home workouts drive robust online sales for items such as dumbbells, resistance bands, and smart fitness devices.
Ecommerce shops find it relatively easy to sell fitness equipment due to the growing trend of home gyms and the ability to provide detailed product information and demonstrations online. The global appeal of fitness equipment is supported by diverse consumer segments, from casual exercisers to dedicated athletes, allowing retailers to target multiple niches.
16. Kids toys
The toy market is expected to reach $150.9 billion by 2032, exhibiting a growth rate of 4.1% from 2024 to 2032. Innovative and sustainable toys, as well as licensed products from popular media franchises, contribute to online sales growth.
The global popularity of kids' toys benefits ecommerce shops by allowing them to access a broad and diverse customer base. Online retailers can easily showcase various products, cater to specific age groups, and leverage digital marketing strategies such as influencer partnerships and social media campaigns to drive sales.
17. Supplements
The global nutritional supplements market size is expected to grow at a compound annual growth rate (CAGR) of 6.3% from 2023 to 2030. The increasing focus on health and wellness, along with the rise of personalized nutrition, drives strong online sales for vitamins, minerals, and specialized supplements such as protein powders and nootropics.
The global growth in the supplements market provides ecommerce shops with ample opportunities to cater to health-conscious consumers worldwide. Online retailers benefit from the ease of subscription models for recurring purchases and the ability to provide detailed product information and customer reviews to build trust.
18. Sustainable products
This market size is estimated to reach $367.2 billion by 2029, growing at a rate of 11.3% during the forecast period from 2024 to 2029. Products such as reusable household items, eco-friendly personal care products, and sustainable fashion are in high demand as consumers become more environmentally conscious.
The global shift towards sustainability drives the popularity of eco-friendly products, making them a profitable choice for ecommerce shops. Online retailers can easily market sustainable products through storytelling and highlighting the environmental benefits, which resonates with a growing base of eco-aware consumers.
19. Digital courses
Revenue in the online education market is expected to show an annual growth rate (CAGR 2024-2029) of 8.57%, resulting in a projected market volume of $279.30 billion by 2029. The demand for online education, professional development, and personal growth courses continues to surge, providing substantial revenue opportunities for ecommerce platforms offering digital courses.
The global accessibility of digital courses makes them highly scalable and appealing to a broad audience, facilitating rapid growth for ecommerce shops in this sector. Online retailers benefit from the flexibility of updating and expanding course offerings without the constraints of physical inventory.
20. Personalized gifts
The market for personalized gifts is projected to reach $49.89 billion in 2024 and $50.75 billion by 2032, exhibiting a CAGR of 6.7% during the forecast period. Items such as custom-engraved jewelry, personalized home decor, and bespoke apparel are highly sought after for their uniqueness and emotional value, driving strong online sales.
The global appeal of personalized gifts allows ecommerce shops to cater to diverse consumer preferences and occasions, from birthdays to weddings. Online retailers find it easy to sell personalized items by utilizing user-friendly customization tools and offering a wide range of personalization options. Leveraging social media to showcase unique, customized products enhances their marketability and appeal.
21. Outdoor furniture
In 2024, the revenue in the outdoor furniture market worldwide amounts to $52 billion. It is projected that the market will experience an annual growth rate of 3.60% between 2024 and 2029. The increasing focus on outdoor living spaces and the trend toward stylish, durable, and sustainable outdoor furniture drive strong online sales.
The global popularity of outdoor furniture benefits ecommerce shops by allowing retailers to tap into a wide range of consumer markets seeking to enhance their outdoor spaces. Online stores can showcase extensive product catalogs with detailed descriptions and high-quality images, facilitating informed purchasing decisions.
What makes a good product to sell online?
Let's move on to understanding what makes a product successful online. From profitability to trends, several key elements determine a product's potential success.
Profitability
A profitable product ensures a healthy margin between cost and sales price. It allows for reinvestment into marketing and business growth. High profitability can sustain the business during slow periods. It also provides the flexibility to offer discounts and promotions without hurting the bottom line.
Quality
High-quality products build trust and loyalty among customers. They reduce return rates and increase positive reviews. Quality items differentiate your brand from competitors in the market. Ensuring consistent quality helps in establishing a strong reputation and repeat business.
Demand
Products with strong and consistent demand are more likely to sell online. Understanding market needs ensures you are offering what customers are actively seeking. High-demand products can lead to faster inventory turnover and increased sales volume. They also minimize the risk of unsold stock.
Competition
Analyzing competition helps identify gaps in the market and opportunities for differentiation. A competitive landscape can drive innovation and improve product offerings. Understanding competitors’ strengths and weaknesses allows for strategic positioning.
Competitive pricing
Setting competitive prices attracts price-sensitive customers and increases market share. It requires balancing affordability with maintaining a healthy profit margin for product sales. Competitive pricing strategies can include discounts, bundling, or value-added services.
Sourcing costs
Reliable and cost-effective suppliers ensure consistent product quality and availability. Lower sourcing costs can provide a buffer against market fluctuations and pricing pressures. Efficient sourcing strategies contribute to overall business sustainability and growth.
Shipping costs
Transparent shipping costs help build trust and reduce cart abandonment rates. Efficient shipping processes minimize delays and damages, ensuring products arrive in good condition. Optimizing shipping costs contributes to better profit margins and customer loyalty.
Seasonality
Seasonal products can generate sales during specific times of the year. It allows for strategic promotions and timely product launches to capitalize on trends. Managing seasonality effectively ensures steady cash flow and reduces the risk of overstocking.
Trends
Staying ahead of trends ensures your product offerings remain relevant and appealing to customers. Trending products can drive increased traffic and sales through heightened consumer interest. It allows businesses to innovate and adapt to changing market preferences.
Durability
Durable products offer long-term value to customers, leading to higher satisfaction and repeat purchases. They reduce the likelihood of returns and negative reviews related to product failure. Emphasizing durability can differentiate your products in a saturated market.
How to calculate profit margin
Understanding how to calculate profit margin is key to pricing your products strategically. Let's find out below how you can calculate this important metric.
(Net profit/revenue) X 100:
Net profit is calculated by subtracting all your business expenses from total revenue. Net profit reflects the actual earnings after all costs are deducted from your total sales.
Now, take this number and divide it by your revenue. Dividing net profit by total revenue gives you a ratio that shows how much profit you make for every dollar earned.
Multiply this number by 100 to get a profit margin percentage. Converting the ratio into a percentage makes it easier to interpret and compare against industry benchmarks.
How to find products with high profit margins to boost online sales
A little market research can go a long way in finding the products with the highest profit margin to sell online. Here are some useful tools and tips to help you discover what's trending among your target audience.
Use Google Trends
Google Trends is a great free tool that offers an inside peek at the most searched-for topics on Google. You can customize your search to show the top trending products and subjects over the past few years, months, or even hours.
This is an awesome way to spot products or topics that may appeal to your niche market. You can then turn those ideas into high-profit products to sell online.
Check out competing ecommerce stores
When it comes to online retail, competitor analysis can be an invaluable market research tool. Get familiar with other ecommerce merchants that cater to your target market and visit their sites periodically to see their most popular products.
This can give you a good idea of what's trending among your target audience and provide valuable clues to the average selling price of similar products. It can also be a great way to spot any gaps in the market.
Coming up with an idea for a high-margin product that no one else is selling is a great way to make your online store stand out. If you want to go all in, professional tools like SimilarWeb and SemRush can give you valuable insights into rival stores.
Find high-margin products on social media
Social media is a goldmine for generating ideas for high-profit margin products. The key is to follow as many other online stores in your niche as possible.
If you sell beauty products, follow everyone from high-end suppliers to other independent retailers. While the goal isn't to reproduce the same products exactly, you can generate plenty of ideas by tracking which beauty products are trending, and the average price customers are willing to pay.
Search ecommerce platforms
Platforms like eBay and Amazon offer extensive data on best-selling items and pricing trends, helping sellers identify products with high profit margins. By analyzing customer reviews and sales rankings, businesses can gauge which products are both popular and profitable.
Create custom products for higher profit margins
Transforming your designs into high-margin print on demand products relies on choosing the right items. Opting for high-demand products like children's clothing, accessories, or even beauty products allows you to set a retail price that covers your costs while still giving you a nice profit.
In the world of ecommerce, quality is key. To achieve the highest profit margins, it's important not to compromise on the quality of your products. Offering premium items like custom drinkware or sustainable products can set your store apart. Gelato provides many high-margin options you can count on to deliver that quality.
From electronic device accessories to personalized gifts, Gelato offers a diverse range of print on demand merchandise ready to be turned into profitable products for your online store, helping you grow your ecommerce business by maximizing those profit margins!
FAQs on high-profit margin products for online sellers
Why is it important for online sellers?
Knowing profit margins is fundamental to running a successful business for online sellers. It helps set prices that cover costs and generate profits, which is crucial in a highly competitive market. Understanding profit margins also aids in better inventory management and resource allocation.
What are the benefits of using a print on demand service like Gelato?
Using a print on demand service like Gelato eliminates the need to hold inventory and reduces upfront costs and financial risk. It allows for quick and flexible production, enabling sellers to respond swiftly to market trends and customer demands.
How can I ensure my products stand out in a competitive market?
To make your products stand out, focus on unique designs, high quality, and an exceptional customer experience. Differentiate your offerings through innovative design, superior materials, and customization options.
How can I use Google Trends to identify high-demand products?
Google Trends allows you to analyze search volume data for specific keywords related to your products, helping you identify current trends and seasonal peaks. By entering terms like "highest profit margin products," you can gauge the popularity and demand over time.
How can print on demand help boost your profit margin?
Print on demand suppliers like Gelato reduce the time and costs associated with selling products online by handling production, printing, and shipping only after a sale is made. Online retailers can feature high-margin products, integrate Gelato's print on demand business model into their stores, and pay for items only when they are sold, eliminating upfront inventory costs.
