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The problem with finding high margin products

If you’re a small internet retailer, finding products you can sell online that will earn you high margins can be a difficult task. To make a significant sum on each sale requires you to be retailing expensive goods, however, to buy these in bulk, in the traditional wholesale way, is very costly and, if you don’t manage to sell them, a risky operation.

In normal wholesale practice, you would need to pay up front for the goods you wish to sell, unless you could prove that your business was financially secure enough to be allowed a credit agreement with the wholesaler. Even then, the size of your margin would be dependent upon the size of your order. The more you buy, the greater the discount. For small retailers, this can be a huge stumbling block to selling highly valuable goods with significantly high profit margins.

The other obstacle is that, even if you could purchase them, you are then left with the costs of storage. High value goods are precious commodities. They need to be warehoused securely and safely to prevent theft or damage. If you have invested this amount of money into the products, you’ll want them insured in case the worst happens; otherwise, your business may go bust. You’ll also want to make sure that they don’t go missing or get damaged during delivery.

The cost of storing, protecting, insuring and delivering high value stock all adds up and reduces the final profit from your activities.

The solution

The solution is to find a wholesaler or manufacturer who is willing to dropship their products for you. Using a dropshipping service is the perfect answer for a small, online retailer wanting to make a move into high margin goods.

By using a dropshipping manufacturer you don’t need to buy in bulk before you get your hands on the products. Instead, you sell the product online first, collect the payment from your customer and then pay the manufacturer or wholesaler. The manufacturer or wholesaler will then deliver the product straight to your customer for you.

The advantages are obvious: no huge cash advance to be paid, no storage, security, insurance or delivery costs eating into your profits and no risk of even a single unsold product. It’s safe and simple. But is it too good to be true?

We’ll almost, because whilst dropshipping is big business in US, here in the UK there are surprisingly few manufacturers or wholesalers who are prepared to offer this service to their retailers. There are some dropshippers around, but the vast majority deal in small, low value goods, where the profits are small.

Dropshipping the Timber World Way

Here at Timber World, we offer a fantastic dropshipping service for all manner of online retailers and garden centres. We offer a margin of between 10% and 15% on our products, which, when you consider the retail price of our log cabins, can earn you hundreds of pounds profit per sale.

Most importantly, our products are of exceptional quality, our delivery times are short and our customer services are second to none in the industry. So, not only will you make a reasonable profit from your retailing, you can also be assured that through working with us, your customers will be highly satisfied with the quality of their garden building and the service they receive – all of which, as far as your customers are concerned, will have been provided by your business.

In addition, all our products are unbranded, allowing you to create your own brand around them and we ensure that there is a minimum price at which our products can be sold, so that margins are guaranteed. We will even provide you with a web pack containing all the sales materials you need to get your website or promotion up and running.

So, if you are still looking for high margin, wholesale products to sell online, sign up for a dropshipping account with Timber World today.