Fast selling, low margin products. How low of a margin should you go?
A decent size part of what I sell are fast selling low margin products, but I struggle to find the ideal point for how low should I go in terms of margins. Any advice?
3 comments
A decent size part of what I sell are fast selling low margin products, but I struggle to find the ideal point for how low should I go in terms of margins. Any advice?
slippinjimmy
·2 years agoWhat are these "low margin" products? I skimmed over your listings but didn't see anything that appeared to match that description unless you are overpaying or underpricing. I expected I would see a whole bunch of sub $5 new items but found only vintage/collectibles that should provide big margins if you buy right
Personally anything that is moving fast is underpriced unless I have an unlimited replaceable supply.
As far as your primary question, every seller here (the ones that actually think about margins) would have a different number and a different technique to get there all based on a multitude of factors.
I like to think in terms of "how high can I go" rather than how low I can go and still survive.
carlagraca
OP2 years agoI live in Portugal, my only way to source is through online auctions. There's nothing remotely close to the amount of ways to get inventory, like in the US. As such, I have to pay up for my items - ex: Barbies. Most of them are low margin to me, because I have to pay up to get them (I make about 25% net profit margins), but they do sell fast - most inventory sells within 2 weeks.
kensgiftshop
·2 years agoI think that is something only you can decide.
Myself, if I clear a couple bucks, I'm good with that, others wouldn't do it unless they could clear $20 or more.