How To Find Dropshipping Products with High Profit Margin In 2023

Since the aim of every business organization is to provide value and make profits, finding dropshipping products with high profit margins should be the goal of every drop shipper who wants to succeed in the e-commerce world.

Quick Introduction: what is dropshipping? Dropshipping is a popular business model in which the retailer/drop shipper does not keep the products they sell in stock. But buys the products from a third-party supplier when a customer makes an order, and then the supplier ships the products directly down to the customer. Dropshipping is a low-risk and low-investment means of starting an online store. So In this article, we will be discussing how to find dropshipping products with high profit margins.

What is a High-Profit Margin?

A profit margin is a difference between the cost of a product and the price at which it is sold. A high-profit margin means that there is a huge difference between the cost of the product and the price at which it is been sold. Generally, a profit margin of 50% or more is considered high. For example, assuming I bought a trending beautiful Snickers for $10 and decided to sell for $20 the extra $10 is my profit which is on a 50% profit margin.

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How Can I Find Dropshipping Products with High Profit Margins?

Finding the right products to sell can make or crash your dropshipping business. This is why it is very advisable to study and make well-detailed research about a product before posting it on your store for sale. Here are some tips on how to find dropshipping products with high-profit margins:

Research Trending Products:

Look for products that are currently trending in your niche. With the use of research tools like Google Trends, Amazon Bestsellers, and social media platforms you can find out what products are popular and trending then in your location.

Analyze the Competition:

Look at what your competitors are selling and how much they are charging for their products. You can as well reduce the price at which they are selling the product in your store a little, as long as it doesn’t affect your profits. Also, If you can find a product that is in high demand but has low competition, it could be a goldmine.

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Use a dropshipping Platform:

Although anybody can research a product without using a dropshipping platform. They can research their products by using social media search bars and popular topics. But to be successful, it is always advisable to use a dropshipping platform, several dropshipping platforms like Oberlo, Spocket, and SaleHoo can help you find products to sell. These platforms offer a wide range of products from different suppliers, and you can compare prices and profit margins to find the best products to sell.

Look for Niche Products:

Niche products are products that are uniquely sorted for a particular group of customers. These products may have a smaller market, but they can have higher profit margins because of their uniqueness.

Find Products with High Expected Value:

Look for products that have a high expected value. These are products that customers will be ready to pay a heavy amount of money for because they see the value in them. For example, a high-quality leather bag or a luxury watch will do the charm.

Test Products:

Before deciding to sell a product, test it first. You don’t necessarily have to buy the product to test it, you can use Facebook Ads or Google Ads to test the product’s demand and see how well it performs before deciding to add it to your online store.

Negotiate with Suppliers:

Negotiate with your suppliers to get the best price for the products you want to sell. Don’t always agree to the price your supplier gives to you, you should always negotiate with them. A lower price from your supplier means you can sell the product at a higher price and make more profit.

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Examples of High-Profit Margin Dropshipping Products

Here are some examples of dropshipping products with high-profit margins:

Phone Cases: Phone cases are popular products that have a high-profit margin. You can find phone cases for as low as $0.50 (₦380) and sell them for $10 (₦7,600) or more. Meanwhile, phone cases are always in trend, so with a well-optimized website and good marketing strategies, you are sure to make good sales from the product.

Fitness Tracker Watches: Fitness tracker watches are in high demand, and they have a high perceived value. You can find fitness tracker watches for as low as $15 (₦11,400) and sell them for $50 (₦38,000) or more.

Home Decor: Home decor is a broad category that includes products like wall art, throw pillows, and curtains. You can find home decor products for as low as $5 (₦3,800)and sell them for $25 (₦19,000) or more.

Skincare and Beauty Products: Beauty products like makeup and skincare have a high-profit margin because they have a high anticipated value. Moreover, beauty product is highly sort after in the market and is always trending You can find beauty products for as low as $2 (₦ 1,500) and sell them for $15 (₦ 11,400) or even more.

Pet Products: Pet products are a niche category that can have high-profit margins. Since pet owners are always willing to pay a huge amount for proper care of their pets. An example of a pet product with a high-profit margin is Dog food. You can find pet products for as low as $1 (₦760) and sell them for $20 (₦15,200) or more.

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