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“Margin” is the difference between the wholesale cost of an item and the price your store sells it for (which, in turn, pays for all your business’s expenses).
Essentially, your profit margin is like the emperor for your eCommerce store. Higher margins allow your business to be profitable. Smaller margins make you crash and burn.
Think about it like this: You can’t run an empire with a weak ruler.
But you can’t mark up your products without paying attention to what the market will bear. After all, if your prices are too high, you won’t make any sales!
So, how do you easily build your eCommerce empire? By selling low cost products with high profit margins, of course!
It’s time to look at the 30 best low cost products with high profit margins you can start selling today. Let’s go!
What makes a good product to sell online?
When you look at the most successful online sellers – you know the ones who share their six- and seven-figure incomes on Youtube and Instagram – you might think that they’re just lucky. They simply chose the right product at right time and – voila! – they’re making big money.
Sure, sometimes luck comes into it. But the best online sellers know what to look for in a product and they put in the research to validate their ideas.
There are 7 factors to consider when choosing a product to sell online. Tick all these boxes and you can be confident you’re on to a winner.
1. Profitability
You want to make money online? Then your product has to be profitable. It’s not as simple as selling your product for more than you paid for it. You also have to take into account seller fees, packaging and shipping costs, your marketing budget, and the time you invest in all of these tasks, not to mention the tax you’ll pay on your income.
Successful sellers know how much it will cost them to sell their product and calculate their profit margins based on these numbers.
You can use SaleHoo Labs to see the average price that specific products are selling for on popular online marketplaces like eBay and Amazon. Otherwise, you can do your own market research online.
Pro tip: Negotiating with suppliers is a great way to increase your profitability. Try and make the best deal with your supplier so that you can make higher profits.
2. Competition
Thinking about jumping on that hot retail trend to make a bunch of fast cash online? Thank again. If a product’s already trending then it’s probably going to be highly competitive – meaning lots of other sellers are already selling it.
The more saturated a market is, the harder it is to sell in it, especially if you’re new to eCommerce.
You want to choose a product that has low competition. That means you will get a larger slice of the market.
The other option is to find a trending product or niche and sell something similar, but different or better. That way, you get the best of both worlds: A hot market and less direct competition.
Again, you can use SaleHoo Labs to see how competitive products are, or you can conduct your own market research by browsing popular online marketplaces.
3. Price point
Profitability is important, but it’s not everything. For example, if you managed to source a special toothbrush for $0.10 per item, and you were selling it for $1.10, that’s a good profit margin.
However, you’d have to sell a lot of toothbrushes to make a good income.
That’s why your price point is important. The retail price sweet spot is between $15 and $200. Anything less than $15 and you might be struggling to make enough money. Anything over $200 is harder to sell (buyers have to think more about expensive purchases).
I’d recommend going somewhere in the middle – around the $50 mark sounds about perfect. That gives you plenty of room to absorb all of the additional expenses you have to cover, especially if you can source your product for a good price. And buyers don’t have to think too much about handing over their money.
4. Size & weight
Thinking about selling surfboards or table tennis tables? You might want to consider the cost and logistics of getting those items to your customers, especially if your supplier is another country like China, for instance.
You’re best to choose products that are small and light. The rule of thumb is that the product should be small enough to fit in a shoe box and weigh less than 4.4lbs (2kg). This makes it perfect for dropshipping from a country like China using a delivery service like ePacket.
While you can sell large, heavy items, you’re more likely to run into logistical issues and you want to keep your processes as simple as possible.
5. Durability
The other thing to consider is the durability of your product. Do you really want to run the risk of shipping handmade clay pots from Bangladesh to the United States? What about remote control cars that have lots of complex components?
While a case can be made for both of those product ideas, it seems like unnecessary risk. The pots could break in transit and all it takes is for one component in the remote control car to be faulty, and you’ve got a disappointed customer.
When choosing a product to sell online, I recommend going with something that’s durable and has few moving parts.
It reduces the risk of something going wrong.
6. Sellability
By sellability I mean, will the product sell? It’s hard to know for sure. But you need to have some idea of whether or not you can move your product because, well, that’s the whole point of selling online.
SaleHoo Labs shows the sell rate for thousands of different products, which can help to give you confidence in your product.
You can also pay attention to other sellers in your market to see if they’re have sales success.
7. Seasonality
Some products are seasonal. Halloween costumes. Christmas decorations. Inflatable pool toys. They all tend to sell at particular times of the year.
While this can be a good thing, it’s best to avoid seasonal products, especially if they’re the only product you’re selling and you’re new to eCommerce.
Seasonal products can be a great addition to an established eCommerce store and, with clever marketing, you can make enough money during one season to last a year.
But you ideally want to choose a product that you can sell all year round, providing you with consistent income.
30 Low Cost Products With High Profit Margins
1. Jewelry
As far as unisex products go, jewelry is at the top. From watches to necklaces, bracelets, pins, earrings, and more, you’re guaranteed to find something for everyone. Wholesale suppliers such as Fashion Jewelry For Everyone and Bedido Fashion Jewelry allows you to choose top-notch products at next-to-nothing prices.
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Pros of Selling Jewelry
Easy to sell
They don't take up much inventory space
There's always demand throughout the year
Cons of Selling Jewelry
Highly competitive
More work is required for shipping and packaging
Average Margin: $5-$35
Source Wholesale Jewelry Supplier
2. TV Accessories
Wholesale suppliers such as Kanto Living offer beautifully crafted TV wall mounts, tabletop stands, and earth-shattering audio systems at a price you simply cannot beat. TV accessories may be the next best thing, too (especially with how many new video game console systems are starting to emerge).
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Pros of Selling TV Accessories
Potential high profit margin
Easy to specialize or niche down to certain car brand accessories
Cons of Selling TV Accessories
Varied shapes and sizes for TV accessories may complicate packaging and shipping
Cost price is high
Average Margin: $20-$50
Source Wholesale TV Accessories Supplier
3. Beauty Products
Is there anything better than pampering yourself? Why, yes! Indeed there is! You could help others pamper themselves by starting your own beauty eCommerce store! With a little bit of help from wholesalers like Volcanic Earth and Central Closeout, you’ll be running a beauty empire in no time.
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Pros of Selling Beauty Products
Easy to showcase product benefits
Easy to package and ship
Lots of sub-niches to enter
Cons of Selling Beauty Products
Competition with big brands in the industry
Average Margin: $3-$25
Source Wholesale Beauty Products Supplier
4. DVDs
Despite contrary belief, the era of DVDs is not dead. Wholesale suppliers like Evertek continue to add to their ever changing product list and offer the latest (and greatest) tech you could find (did somebody say 4K DVDs?).
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Pros of Selling DVDs
Certain DVD genres can be profitable despite overall declining industry
Lots of opportunity to buy second hand DVDs for cheap
Easy to buy in bulk
Cons of Selling DVDs
Overall declining industry
Risk of not selling unwanted DVDs
Average Margin: $3-$10
Source Wholesale DVDs Supplier
5. Kids Toys
Ah… toys! Opening an eCommerce toy store may be your ticket to success. Wholesale suppliers such as And the Little Dog Laughed sell toys tailored to children, while suppliers like Park Flyers sell toys for adults (such as drones, electronic RC planes, etc.).
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Pros of Selling Kids Toys
Toys are timeless. As long as there are children in this world, there will be toys for them to play with
Easy to buy in bulk
Cons of Selling Kids Toys
The toy industry is dominated by big brand
Varied toy sizes and weight may cause problems for shipping
Average Margin: $10-$30
Source Wholesale Kids Toys Supplier
6. Video Games
While you yourself may not be a hardcore gamer, there are plenty of people out there looking to get the best deal on video games (as well as gaming systems). Ingram Entertainment offers just that, at an extremely reasonable price. Be careful, though! You may have a bit of competition when starting out (you’ll have to match deals and prices from GameStop, RadioShack, and other gaming stores).
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Pros of Selling Video Games
There are always new games being produced and the game producer does the heavy lifting of marketing the product for you
Easy to package and ship
Cons of Selling Video Games
Need to differentiate yourself via other means, ie customer support, shipping and etc
Popular games maybe hard to get, and less well known games are in risk of not selling
Average Margin: $5-$20
Source Wholesale Video Games Supplier
7. Women’s Boutique Apparel
While we can’t speak for all women, we can surely speak for quite a few when we say: there’s nothing a woman likes doing more than shopping for the next best outfit! By opening an eCommerce women’s boutique store, you’re able to supply what could be the next best look. Plus, you’re able to incorporate accessories (such as scarves, hats, and more)! Wholesale suppliers like Apparel Candy will surely help you become the next best boutique on the market.
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Pros of Selling Boutique Apparel
Universal appeal to women
Potentially high margin if you can find the right supplier
Cons of Selling Boutique Apparel
Need a strong brand to be successful
Considerable upfront investment needed to stock different apparel sizes and color
Average Margin: $5-$30
Source Wholesale Boutique Apparel Supplier
8. Designer & Fashion Sunglasses
Who said eyewear has to be boring? Absolutely no one! With a wholesale supplier like Queen Bee of Beverly Hills, you’ll be able to create a kickass eCommerce store for fashionistas all over the world. The best part? Queen Bee offers designer sunglasses for both men and women!
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Pros of Selling Fashion Sunglasses
Potentially high margin if you can find the right supplier
Good resale value for those that are in good condition
Mature industry, lots of sunglasses suppliers available for new ecommerce entrepreneur
Cons of Selling Fashion Sunglasses
More difficult to differentiate yourself as low barrier of entry also means there are high competition
Average Margin: $3-$20
Source Wholesale Fashion Sunglasses Supplier
9. Shoes
Is there such a thing as “too many shoes”? We don’t think so – and neither should you! Building an eCommerce store based solely (we totally meant that pun) around shoes could be the next best thing. With a bit of help from Anko Shoes, you’ll be able to supply shoes for children, teenagers, adults, and elders!
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Pros of Selling Shoes
Universal appeal to everyone
Lots of sub-niches to branch into
Good resale value for branded shoes that are in good condition
Lots of references on the internet on how to become succesful
Cons of Selling Shoes
High competition
Average Margin: $10-$45
Source Wholesale Shoes Supplier
10. Halloween Costumes & Masks
Everybody knows that Halloween is all about the costumes. With some help from our wholesale supplier, DX Extreme, you’ll have the hottest costumes on the market! They also sell Halloween decorations to really get the party started!
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Pros of Selling Halloween Costumes & Masks
Easy to prepare for stocks and promotion as halloween is a yearly celebration
Unsold halloween costumes can be sold the following year
Cons of Selling Halloween Costumes & Masks
Have to keep stock for unsold goods
Hard to differentiate yourself during the festive season for promotion
Average Margin: $10-$45
Source Wholesale Halloween items Supplier
11. Kid’s Formal Wear
Have you ever looked around for children’s formal wear? It’s practically impossible to find a good suit (or formal dress) for a child. With Boulevard Apparel as your wholesale supplier, you’ll be able to keep your warehouse full of children’s formal wear (which will be a huge step for eCommerce stores, seeing as there really aren’t many formal shops tailored to children)!
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Pros of SellingKid’s Formal Wears
Competition is not as high as other apparel niche
Great opportunity to upsell related accessories
Less worries about sizing and fitting
Cons of Selling Kid’s Formal Wear
Business volume may not be great (less occasion for kids to wear formal)
Average Margin: $10-$30
Source Wholesale Kid’s Formal Wear Supplier
12. Sleepwear & Underwear
Gone are the days where sleepwear was just what you wore to, well, sleep in! Golden Eagle Home Textile offers a vast range of silk pajamas for you (and your customers) to lounge around in all day! A sleep-centered eCommerce store would be incredibly fun to have (think of all the cozy pajamas and slippers you’d get to show off)!
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Pros of Selling Sleepwear & Underwear
Can be a high margin business with the right supplier
High profit potential for well designed sleepwear with a strong brand
Easy to store and package
Cons of Selling Sleepwear & Underwear
Sizing and fitting can be a hassle to work with. Would need to source multiple sizes to cater for different body types
Average Margin: $5-$25
Source Wholesale Sleepwear Supplier
13. Pet Care Supplies
Nearly everyone has an animal in their household (or knows someone that does). If you were to open a dropship pet supplies store around pet care products, there’s no doubt in our mind that you wouldn’t be an instant success (with the right amount of promotion, of course)! Wholesale suppliers such as Pet Edge and Inspirer Pet will supply you with the materials you need to have a successful pet-tailored store.
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Pros of Selling Pet Care Supplies
Lots of sub-niches to branch into
Great recurring business opprtunity
Great opportunities for upsell
Cons of Selling Pet Care Supplies
Shipping can get expensive for large items
Average Margin: $5-$50
Source Wholesale Pet Care Supplier
14. Candles
Candles are pretty much the universal “I’m sorry, but I’m not sure what else to get you for Christmas” gift. However, they could be so much more! Opening an eCommerce store that sells candles (as well as candle holders) could open so many doors for you! Not to mention, everyone loves candles. Gem Candles offers a ton of amazing scented candles for you to try out – for free before you buy!
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Pros of Selling Candles
Relative easy to source
Popular gift choice
Predictable recurring business (Various service businesses and places have light candles daily)
Cons of Selling Candles
Easily damaged during shipping
Chances of melting under hot weather during transport or storage (lack of air conditioning)
Average Margin: $5-$15
Source Wholesale Candles Supplier
15. Outdoor Furniture & Accessories
There’s nothing quite like spending time with friends and family outdoors. In fact, it was proven that people who spend more time outdoors are happier! By opening an eCommerce store focused on outdoor furniture or even dropshipping home decor products, you’ll rest easier knowing you’re helping someone else’s mental health! Our wholesale supplier, W. Unlimited, can help you start up!
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Pros of Selling Outdoor Furniture & Accessories
Potential for high profit margin
More opportunities to upsell related furnitures
Cons of Selling Outdoor Furniture & Accessories
Large, varied sizes furniture makes shipping more complicated
Takes longer to sell, harder to move furniture
Average Margin: $30-$150
Source Wholesale Furniture Supplier
16. Phone Accessories
In this day and age, it’s rare to see someone who doesn’t have a cell phone. That alone makes a cell phone accessory eCommerce store a gold mine. With a wholesaler like Reiko Wireless Inc., you’ll be able to give the consumers what they want: a unique way to showcase their phones!
Pros of Selling Phone Accessories
Lots of opportunities to source unique, creative cell phone accessories
New phones are being released every year, so there's always new demand for accessories for these phones
Phone Accessories are small and compact, so they take less storage space and shipping will be less difficult
Cons of Selling Phone Accessories
Low barrier of entry for competition
Average Margin: $3-$15
Source Wholesale Phone Accessory Supplier
17. Board Games
Board games can either make or break a good party! Starting up an eCommerce store for board gamers may be the best way to ensure everyone has a good time. After all, no one likes a boring game! Aquarius Entertainment Merchandising Inc. can help you find all the right board games to start out with.
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Pros of Selling Board Games
Easy to buy for cheap and resell for much higher price (High ROI)
Board games have strong sentimental value, and some customers are willing to pay a high price for it
Doesn't require a lot of capital to start
Cons of Selling Board Games
Needs effort to find the right boardgame in good condition
Some boardgames come with fragile pieces, which can affect shipping and customer review
Average Margin: $20-$60
18. Books
When thinking about an eCommerce bookstore, we see so much potential for success. Not only will you be able to offer actual books, you can offer online books too! Finding a wholesale supplier for books may not be the easiest thing to do (as nearly everything is online now), but using someone like Gardner’s Used Books & Comics is a sure-fire way to get started.
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Pros of Selling Books
Straight forward and easy to sell
Easy to buy books in bulk for cheap
Cons of Selling Books
They are heavy and take a lot of space
Average Margin: $5-$15
Source Wholesale Books Supplier
19. Legos
Legos are one of the most popular toys sold daily. It’s almost baffling to think that there aren’t many eCommerce stores completely based around legos! No worries, though! That leaves plenty of room for you to pick up the slack! With a wholesaler like DC Wholesales, you’ll be able to rise to the top of Lego Heaven city!
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Pros of Selling Legos
Well known brand with a cult following
Easy to buy in bulk for cheap
Certain lego sets and collection can fetch for high price
Cons of Selling Legos
Collector lego sets are hard to come by
Easy to damage the legos if not being taken care of
Average Margin: $5-$30
Source Wholesale Legos Supplier
20. Active Wear
Working out has become a huge part in a lot of people’s everyday lives. How awesome would it be to be able to supply active wear clothes to fitness-savvy people? With a wholesaler like S&S Activewear, you’ll run, sprint, and possibly even lunge, to the top of the fitness-apparel community!
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Pros of Selling Active Wear
Easy to find a sub-niche as you're already targeting a specific group of people
As with most apparel, selling active wear can be a high margin business with the right supplier
High profit potential for well designed active with a strong brand
Cons of Selling Active Wear
Sizing and fitting can be a hassle to work with. Need to source multiple sizes to cater for different body types
Highly competitive as active wear has gained popularity in the last few years
Average Margin: $5-$15
Source Wholesale Active Wear Supplier
21. Men’s Bow Ties
Men’s bow ties have become a lot more popular in the past few years. Perhaps it’s because bowties are classy and literally never go out of style! If you’re interested in men’s bowties, pair up with one of the best bow tie wholesalers, Dot, to get started on this exciting eCommerce store!
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Pros of Selling Men’s Bow Ties
Small, light weight and easy to ship
Simple product to sell
Cheap to source
Cons of Selling Men’s Bow Ties
need to stock different sizes and colors, this will need up front investment if supplier requires minimum purchase.
Average Margin: $1-$5
Source Wholesale Bow Ties Supplier
22. Wooden Watches
We’re not sure why wooden watches aren’t the go-to watch, but one thing’s for sure: they’re stylish, easy to market, and will ensure individuality! Think about it, have you ever seen anyone wear a wooden watch in real life? Pair up with wholesaler Shenzhen Ounier Watch Co Ltd. and you’ll be making sales like no other!
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Pros of Selling Wooden Watches
Small and easy to ship
Well designed watches can be sourced for cheap
Don't have to worry about size and fitting
Cons of Selling Wooden Watches
Designs can be easily copied
Can be difficult to sell at a premium unless you build a strong brand for it.
Average Margin: $15-$30
Source Wholesale Watch Supplier
23. Leggings
Leggings are cozy pajamas that you can wear virtually anywhere (without being judged). Because they’re so popular, it only makes sense to create an eCommerce store with leggings front and center! Private Island Party has nearly every color you’d ever want (and some colors you’d never think of) available for you to start this journey!
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Pros of Selling Leggings
Light weight and really easy to ship and package
Cheap to source in wholesale
Cons of Selling Leggings
Need to stock different sizes and colors, this will need up front investment if supplier requires minimum purchase
Average Margin: $5-$15
Source Wholesale Leggings Supplier
24. E-Cigarettes
With e-cigarettes being as popular as they are right now, you’ll be surprised to know that not many eCommerce store owners sell them! Not only are they a better alternative to smoking, they’re a huge money-making machine. Team up with E-Cigarette Direct to start this thriving business!
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Pros of Selling E-Cigarettes
Gained massive popularity in recent years as alternative to cigarette
Great opportunity for recurring business
Cons of Selling E-Cigarettes
Some countries introduced regulations for selling E-cigarette
Average Margin: $1-$15
Source Wholesale E-Cigarette Supplier
25. Coconut Oil
Coconut oil has become one of the staple items to use while cooking. Why? It’s a lot healthier for you than nearly any other oil! Starting an eCommerce business with a wholesaler like Nutrakem will help you build a brand you’ll feel good getting behind!
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Pros of Selling Coconut Oil
Long shelf life
Easy to store
Coconut oil benefits are well known, less marketing needed for actual product
Cons of Selling Coconut Oil
Coconut oil stored in glass jar are fragile
More marketing expenditure to differentiate yourself from competition
Average Margin: $3-$15
Source Wholesale Coconut Oil Supplier
26. Matcha Powder
Matcha powder has loads of health benefits, and is often referred to as the antioxidant powerhouse! Our wholesaler, Kiss Me Organics, can help you find the best matcha powder (and some pretty delicious matcha-infused teas, too)!
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Pros of Selling Matcha Powder
Popular product with constant demand
Easy to package and ship
Relatively low cost to start up
Cons of Selling Matcha Powder
Moderate shelf life (1 year or less)
Needs air-tight and light-tight packaging
Delicate and sensitive to heat
Average Margin: $5-$15
Source Wholesale Matcha Powder Supplier
27. Bluetooth Speaker
Bluetooth speakers are used for gaming, television, home-theatres, and even working out. Opening a bluetooth eCommerce store with our wholesaler Tiko International, will bring you nothing but success for years to come!
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Pros of Selling Bluetooth Speaker
Potential for high profit margin
Potential to expand into other verticals within the electronics niche
Cons of Selling Bluetooth Speaker
Prone to breakage during shipping
High competition
Average Margin: $15-$35
Source Wholesale Bluetooth Speaker Supplier
28. Socks
Remember opening Christmas gifts and getting socks as a child? You told everybody that you hated them, but you were secretly so happy that someone thought to get you a few pairs. Socks are one of the most important items that you wear daily (if you ask us)! And they don’t have to be boring! Pair up with Little People & Me to find some of the coolest socks around!
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Pros of Selling Socks
Opprtunity to sell unique, cool socks at a higher price
Less worries on fitting and sizes
Cons of Selling Socks
Low price point
Low barrier of entry means high competition
Average Margin: $3-$10
Source Wholesale Socks Supplier
29. Printer Ink
Running out of printer ink is a nightmare, especially if you work in a huge corporate office and need to print important documents! By opening an eCommerce store for printer ink with Re-Inks, you’ll be able to sell ink to businesses to ensure they never run out again!
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Pros of Selling Printer Ink
Low upfront investment
Does not require big inventory space and has long shelf life
Great opportunity to serve local businesses
Cons of Selling Printer Ink
Ink container prone to leakage
Difficult to find good supplier or manufacturer
Average Margin: $10-$15
Source Wholesale Printer Ink Supplier
30. Designer Lingerie
If you want to sell something a bit more intimate, perhaps designer lingerie is the way to go! Pair up with The Love Shop, pick out a few awesome lingerie sets, and promote the heck out of it! Everyone wants to look sexy, why not help them out?
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Pros of Selling Designer Lingerie
High profit potential for well designed lingerie with a strong brand
Easy to store and package
Small, easy to ship
Cons of Selling Designer Lingerie
Tough competition with well known brands
Product might generate large volume of inquiries.
Average Margin: $5-$25
Source Wholesale Designer Lingerie Supplier
Conclusion
Now that you’re aware of the top 30 low cost products with the highest profit margins, you should be able to open a successful eCommerce store in no time!
If you’ve found this article helpful, be sure to share it with your friends! As always, thanks for counting on SaleHoo to provide you with the tips and tricks needed to create your dream store.
Read more: salehoo.com
