High-Margin Products — complete breakdown and sales ideas

Article content: 

1. Products with the highest margin: what businesses earn on.
2. List of high-margin niches.
3. Comparison of Products from China, Turkey, and Europe.
4. Which products have the highest markup?.
5. Highest-margin products from China.
6. Earn on high-margin products from China with DiFFreight.

In the business world, success is measured not by the number of sales, but by profitability, which directly depends on the margin. Without understanding what it is and how to calculate it, the business will not reach the desired payback. We will explain with real examples how to find that very “gold mine” — the most high-margin product.

Products with the highest margin: what businesses earn on

First, a brief explanation of the terms and their meaning:

• Margin (%) — is how much money you earn from each sold unit.

Margin is calculated from the difference between the cost and the selling price. In the case of production, all costs for manufacturing and logistics to the point of sale are taken into account. Here is the formula:

Margin (%) = ((Selling Price - Cost) ÷ Selling Price) × 100

• Markup — is the amount or percentage by which a seller increases the purchase price to set the retail price.

Essentially, it is an addition that allows covering all business expenses and making a profit.

• Profit — is what remains after deducting all expenses, including rent, salaries, taxes, marketing, administrative and other costs.
• Business profitability shows how efficiently a company uses its resources.

Now let’s move on to the main topic of the article. High-margin products are items sold with a high margin, meaning the difference between the sale price and cost is more than 50%. In practice, this figure can reach 100–500%!

List of high-margin niches

A product business earns precisely on high-margin products: buy cheap, sell expensive. Which niches lead in this category:

• Jewelry, bijouterie — 200–300%.
• Cosmetics from China and perfumery — 100–200%.
• Accessories — 100–300%.
• Wedding products — 200–300%.
• Children’s toys and clothing — 100–200%.
• Small gadgets and accessories (cases, cables, headphones) — from 100% and up to infinity.

The most high-margin items also depend on the region where they are produced. For example, Turkey is known for cheap textiles: the price of a T-shirt starts from $1. China is the king of producing small gadgets, electronics, and toys. In Europe, suppliers offer not cheap but premium products, which can be sold even more expensively.

Among DiFFreight services are delivery from Turkey to Ukraine, delivery from Europe to Ukraine, and, of course, logistics from China. Let’s consider the strengths of countries in terms of high-margin products.

Comparison of Products from China, Turkey, and Europe

Which products have the highest markup?

The markup amount is an individual decision for each business. Some sell 30% higher, others 70%, 100%, and so on. The market also sets the conditions: miscalculate and set the markup too low (you won’t get the expected income), or too high (customers will buy cheaper from competitors).

There is also a difference depending on the sales model:

• Highest-margin products for marketplaces: accessories for electronics, cosmetics, textiles, decor, and useful household items, sometimes clothing and shoes in the low-price segment. Markup on marketplaces is usually low because competition does not allow prices to jump above the market.
• Highest-margin products for online stores: unique (often branded) products, items from narrow niches, expensive electronics and appliances. The online store does not share revenue with the marketplace, does not pay commissions, and the main focus is on building trustful relationships with the client.

If it is better to sell what is in demand by the majority on a marketplace and profit from volume, then in your own store it is the opposite. Profit comes from fewer clients, but it is higher in monetary terms.

Still not sure which high-markup products to choose? Get inspired by the DiFFreight catalog TOP-100 most profitable products from China.

Highest-margin products from China

Buying high-margin products is more profitable in the Middle Kingdom, despite some advantages of Turkey, Europe, and even Vietnam, which competes with China. Here are some arguments:

• Fully developed industry. If your business covers various categories, you will find excellent suppliers for export for everything. This simplifies both procurement and delivery. You can form large batches and bring them cheaply.
• Large production volumes: no country has yet caught up with China. If your goal is wholesale in thousands of units, you will never go wrong choosing Chinese factories.
• Excellent infrastructure. The distribution of raw materials, materials, and technologies is at a high level. Routes are well established both within the country and between production clusters and international directions.

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Due to these factors, shipping goods from China is cheaper, even over long distances.

Earn on high-margin products from China with DiFFreight

The Chinese assortment for import to Ukraine is impressive: everything you could offer your clients is produced on a mass scale. Exclusive items, quick trend adoption, classics that are always in demand — start working with the Middle Kingdom today! Thanks to low purchase prices, businesses can sell high-margin products, earning stable profit.