How do you find the most profitable products to sell online?

8 min readMar 27, 2023

Choosing items with high margins is essential if you’re looking to make a decent profit selling products online. That way, you’ll still be left with a healthy profit even after accounting for shipping costs and other expenses.

But how can you find high-margin products to sell? Keep reading to find out.

Six ways to determine the most profitable products

1. Do your research — figure out what products are selling well and why

One of the most important aspects of running a successful business is figuring out which products are most profitable. There are a couple of different ways to go about this. First, take a look at what products are selling well. This can give you an idea of which items are in high demand.

You can also look at why certain products are selling well. For example, if a product is selling well because it’s priced competitively, you may want to consider raising the price. On the other hand, if a product is selling well because it’s unique or offers something that others don’t, you may want to focus on creating more products like it.

You can ensure your business is as successful as possible by taking the time to figure out which products are most profitable.

2. Use online resources to find products that fit your niche

Not all products are created equal, and some are more profitable than others. To determine the most profitable products for your business, you must research and find products that fit your niche.

Several online resources can help you with this task. Websites like Jungle Scout and Algopix offer tools that allow you to research products and get data-driven insights into their profitability.

Once you’ve found a few potential products, test them out and see how they perform. Then, try selling them on your website, blog, or social media channels like Facebook or Instagram. Pay attention to your sales numbers and average order value to see which products are most popular with your audience.

By finding the most profitable products for your business, you’ll be well on your way to success.

3. Check out online marketplaces for unique and profitable products

Online marketplaces are a great place to start when finding the most profitable products. Not only do they offer a wide variety of unique and interesting items, but you can also get a sense of what items are selling for and how much demand there is for certain products.

This can be valuable when determining which products are most likely profitable. Of course, it’s essential to do your own research and consult with experts in the field before making any final decisions. But checking out online marketplaces is a great way to find the most profitable products.

4. Consider private labelling products to increase your profits

If you want to increase your profits, private-label products may be the way to go. By definition, private label products are manufactured by one company and then sold under another company’s brand. This allows businesses to offer their customers high-quality products without the hefty price tag that often comes with name-brand items.

When it comes to deciding which products to private label, it’s important to consider what will be most profitable for your business. For instance, you’ll want to consider the cost of goods, shipping and handling, and other associated expenses.

Additionally, it’s important to research your target market and determine the products they’re most likely to purchase. By considering these factors, you can ensure your private label business is as profitable as possible.

5. Stay up-to-date with the latest trends in product sourcing

Product sourcing is an ever-changing landscape, and what might be hot today could be cold tomorrow. By keeping your finger on the pulse of the latest product trends, you’ll be in a better position to choose products that will be in high demand and generate healthy profits.

There are many ways to stay informed about current product trends. Social media is an excellent resource for learning about what’s new and popular. You can also sign up for newsletters and blog updates from industry insiders.

6. Network with other entrepreneurs who have successfully found profitable products

If you’re looking to determine the most profitable products, networking with other entrepreneurs who have already found success is another great place to start. These individuals have likely done the legwork in terms of research and development, and they can offer valuable insights into what products are most likely to sell.

Furthermore, they may also be aware of potential pitfalls that you can avoid. Building a strong network of like-minded individuals is always beneficial, but it can be especially helpful when you’re starting a business.

How to Figure Out Whether Your Product Idea is Profitable or Not

Assuming that you’ve already done all of the above and have chosen the ones to sell, how do you ensure they will be profitable? Here are some proven tips:

Do market research

Before you invest time and money into developing a new or sourcing an existing product, ensure that there is a demand for it in the marketplace. The best way to do this is to conduct market research. This can involve talking to potential customers, surveying the competition, and analysing industry trends.

Once you understand the market well, you can determine whether your product idea is likely to be profitable. While there is no guarantee of success, taking the time to do market research will increase your chances of developing the most profitable product.

Calculate marginal costs

Before you can determine whether your product idea is profitable or not, you need to understand the concept of marginal cost. This is the cost of producing one additional unit of a good or service.

You can calculate your marginal cost by adding up all of the fixed costs associated with your product (such as renting a space to create your product) and all of the variable costs (such as the cost of materials).

Once you have determined your marginal cost, you need to compare it to the price for which you can sell your product. If the price you can sell your product for is higher than your marginal cost, your product is profitable.

However, if the price that you can sell your product for is lower than your marginal cost, then your product is not profitable.

Remember that the most profitable products are those with a high price and a low marginal cost.

Consider shipping costs, taxes, and marketing expenses

Besides marginal costs, you also need to factor in shipping costs, taxes, and marketing expenses. Only by considering all of these factors can you accurately determine whether your product is as profitable as you hope.

Of course, simply knowing your numbers is not enough. You also need to have a good understanding of the most profitable products in your market. What are people willing to pay for? What features do they consider essential? Answering these questions will help you fine-tune your product so that it is more likely to be successful.

Making a profit is essential for any business, but it is imperative if you are just starting out. You can increase your chances of success by taking the time to figure out your costs and potential profits.

Use a profit and loss statement

Once you’ve calculated all of the information above, you can use a profit and loss statement to get a better idea of whether your product is profitable or not.

After all, no matter how passionate you are about your product or how much you believe in its potential, your business won’t be able to sustain itself if it doesn’t make money. Luckily, a tool can help you determine whether a product is likely to be profitable: a profit and loss statement.

Also known as a P&L statement, this document outlines all of the revenue and expenses associated with a product. By carefully examining all the costs and revenues, you can clearly see whether your product is likely profitable. And while it’s not an exact science, using a P&L statement is one of the most accurate ways to figure out whether your product idea has the potential to be successful.

Conclusion

It can be daunting to find profitable products to sell online. With all of the research and planning that goes into it, you want to ensure you’re making the right decision for your business. That’s why we’ve put together this comprehensive guide on how to find the most profitable products to sell online not just in 2023 but for the years to come.

By following our advice, you should have no problem finding a product to help your business grow and succeed.

Have you tried any of these methods for finding profitable products? Let us know in the comments!