How To Find Dropshipping Products With High Profit Margins

Have you been struggling with low profit margins on your dropshipping store? Perhaps you just can’t find the right product?

If so, you have come to the right place.

In this article, I will share with you: 

• What a high profit margin in dropshipping is
• A list of products with high profit margins
• Tips on how to increase your profit margins

What Is Considered A High Profit Margin In Dropshipping?

In the dropshipping business model, a good profit margin will range between 20-40%.

The formula for profit margin:

Let’s walk through an example:

Imagine you own a dropshipping store that specializes in electronics. Over the past year, your store generated $400,000 in revenue.

First, you’ll need to subtract all expenses, such as product costs, shipping, advertising, platform fees, and any other operational costs, from your revenue. Suppose your total expenses add up to $280,000. This leaves you with a net income of $120,000.

To find your profit margin, divide your net profit by your total revenue and multiply by 100.

Here’s how the calculation looks:

This simple calculation lets you see how profitable each item is relative to its total sales.

5 High Profit Margin Products You Can Start Selling Today

To help you get started, I’ve curated a list of five products that have great profit potential and are well-suited for a variety of target audiences. Each product offers a unique value, appealing to different customer needs, and has been carefully selected to ensure healthy margins.

Below, you’ll find a brief overview of each product and its estimated profit margin so you can decide which ones might be the best fit for your store.

1. Smart Flower Pot

Product Info:

This innovative Smart Flower Pot takes plant care to the next level, making it effortless to keep your plants thriving. Equipped with 7 advanced sensors and an AI chip, it continuously monitors and adjusts to your plant’s needs, from water levels to light exposure. It features real-time water level tracking and automated watering, so you can go about your day without worrying about frequent maintenance. 

Profit Margin (minus expenses):

Thanks to its unique design and high-tech features, this Smart Flower Pot is a popular choice for consumers, with top Amazon sellers moving an average of 256 units monthly and generating around $21,573 in revenue. With a solid 40% profit margin, it’s a high-demand product with strong earning potential for your store.

2. E-Ink DIY Phone Case

Product Info:

This innovative phone case lets you instantly display cherished photos or custom artwork on the e-ink screen back cover, powered seamlessly via NFC without a battery. Ideal for creative spirits or anyone looking to add a personal touch to their device, this case also offers solid protection, passing drop tests while fitting perfectly to your phone model.

Profit Margin (minus expenses):

With a generous 46% profit margin, the E-Ink DIY Phone Case is a high-potential product. It’s in steady demand, with top Amazon sellers averaging 108 units monthly and earning around $3,602 in revenue. 

3. Sit-Up Boxing Reflex Trainer

Product Info:

The Sit-Up Boxing Reflex Trainer brings strength training and agility work in one compact piece of equipment. With a strong suction cup base and adjustable height, this trainer is perfect for switching between sit-ups and boxing reflex exercises. Whether you’re looking to build core strength or sharpen your reflexes, this trainer adapts to fit your fitness goals.

Profit Margin (minus expenses):

With a 36% profit margin, this trainer is also a profitable choice, meeting high demand among fitness enthusiasts. Top Amazon sellers are moving around 254 units monthly and generating approximately $12,941 in revenue. Its popularity and profitability make it an excellent product to consider for any dropshipping business focused on fitness and wellness.

4. Tire Inflation Pump

Product Info:

The Tire Inflation Pump is the ultimate portable air compressor, perfect for inflating everything from car and bike tires to sports balls and inflatable gear. Its wireless, compact design makes it easy to use anywhere, freeing you from the hassle of cords. Built with durability in mind, this pump features a powerful motor for quick, efficient inflation—ideal for vehicle owners and outdoor enthusiasts.

Profit Margin (minus expenses):

With a strong 49% profit margin and impressive demand, this pump sees top sellers on Amazon moving over 5,000 units monthly, generating around $254,653 in revenue. Its high profitability and broad appeal make it a smart addition to any dropshipping lineup.

5. Portable Dual Screen Monitor for Laptop

Product Info:

Meet the Portable Dual Screen Monitor for Laptops, a 13.3-inch HD extender that takes productivity and entertainment to the next level. With a crisp 1920×1080 IPS display and HDR technology, this monitor brings vibrant, detailed visuals for multitasking, gaming, or streaming. Designed for plug-and-play convenience, it’s compatible with most systems and offers extended or mirrored display modes—all in a durable, scratch-resistant frame that’s easy to carry on the go.

Profit Margin (minus expenses):

With a 16.41% profit margin and strong demand, this monitor sees top Amazon sellers moving over 1,000 units monthly, raking in approximately $246,228 in revenue. 

Simple Ways to Improve Your Bottom Line

Maximizing profits in dropshipping isn’t just about selling more products—it’s about sourcing wisely, clever marketing, and making strategic choices that boost each sale’s value. Here are a few simple yet effective ways to improve your bottom line and build a more profitable store.

1. Source products at the lowest price

It may seem obvious, but sourcing products at the lowest possible price is essential to achieving high profit margins. So why is this worth emphasizing? While finding a low-cost supplier is important, it’s equally important to consider factors like product quality, shipping reliability, and supplier consistency, all of which impact long-term profitability.

Tradelle’s dedicated sourcing team negotiates directly with manufacturers to secure the lowest possible costs on products and shipping. This ensures you receive rates that are far more competitive than what you’d find on platforms like AliExpress or through private agents.

Beyond pricing, Tradelle provides in-depth data on high-demand, profitable products as well as competitor analysis. With Tradelle’s tools, you’ll be equipped to choose products that offer strong margins without sacrificing customer satisfaction.

2. Increase Perceived Value Through Creative Marketing

Creative marketing is essential to positioning your products at a higher perceived value, which allows you to increase profit margins without sacrificing sales. High-quality content—such as eye-catching video ads, engaging images, and well-crafted descriptions—can transform an average product into something that looks premium and worth a higher price.

So, how much can you charge? This largely depends on how well you highlight the unique benefits of your product.

Imagine you’ve sourced a smartwatch at a low cost. With the right marketing, you can sell it at a much higher price by presenting it as a high-end product. Focus on showcasing its features in a way that emphasizes quality and sophistication, showing how it seamlessly enhances the user’s daily life. By creating the impression of a stylish, valuable accessory, you can command a higher price and increase your profit margins.

Here are two effective ways to increase perceived value:

• Emphasize Benefits Over Features: Rather than listing technical specs, highlight how the product makes life better or easier. Describe benefits like convenience, time-saving, or health improvements, helping customers envision themselves using it.
• Create an Emotional Connection: Engage your audience by incorporating storytelling into your ads, showing the product in action and tapping into their desires or needs.

Finally, always think like your customer. Ask yourself, “Would I buy this product at this price?” If the answer is yes, your creative marketing is on the right track.

3. Optimize Shipping Costs

Shipping is often an overlooked area for improving profit margins, but even small reductions in shipping costs can make a significant impact. Consider working with suppliers who offer bulk shipping discounts or using fulfillment centers closer to your main customer base to cut down on costs and delivery times. 

4. Focus on Upselling and Cross-Selling

Upselling involves offering a premium or upgraded product version, while cross-selling suggests related products that complement the customer’s purchase.

For example, if a customer is buying a smartwatch, you could offer an upsell for a premium edition or cross-sell items like protective cases, chargers, or bands. These strategies encourage customers to spend more per transaction, helping you maximize profits without acquiring new customers.

FAQ: Dropshipping Products With High Profit Margins

How can I achieve a high profit margin? 

To achieve a high profit margin, focus on sourcing products from reliable suppliers who offer competitive prices without compromising quality.  In addition, you should control costs by keeping expenses like advertising, shipping, and payment processing low.

How can I increase the perceived value of my dropshipping products?

You will need to ensure your website, product images, and creative content match the perceived value of your product and list the benefits it offers over its features.

Are there specific niches that tend to have higher profit margins?

High-profit niches in dropshipping often include jewelry, beauty, fitness, home decor, and electronics accessories. These products are typically low-cost to produce but have high perceived value, allowing for strong markups. 

Should I offer free shipping, and how does it affect profit margins?

Free shipping can be a fantastic incentive to get customers to purchase your product. However, it’s essential to balance this by either slightly raising product prices to cover shipping costs or absorbing the cost if it’s low. 

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Final Thoughts

If you’re aiming for consistent profitability in dropshipping, sourcing high-profit, high-demand products is key. With the insights shared here—from smart sourcing and creative marketing to enhancing perceived value—you’ll be well-positioned to grow a sustainable business.Before you go, consider exploring a platform like Tradelle to streamline your sourcing and improve your profit potential with reliable, competitively-priced products. With the right tools and strategies, your dropshipping store can thrive year-round.