What margins should you expect? We analyzed 800+ products across 8 categories to give you real profit margin data for 2026. Use this guide to pick niches that actually make money.
| Category | Margin Range | Avg Profit | Competition |
|---|---|---|---|
| Pet Supplies | 55-65% | $12-18 | Medium |
| Home & Kitchen | 50-60% | $10-15 | Medium |
| Beauty & Personal Care | 45-60% | $8-14 | High |
| Electronics | 40-55% | $15-25 | High |
| Automotive | 50-65% | $12-20 | Low |
| Baby & Nursery | 45-55% | $10-16 | Medium |
| Office Supplies | 40-50% | $8-12 | Low |
| Toys & Games | 45-55% | $8-15 | Medium |
Passionate buyers, repeat purchases, niche opportunities in reptiles/birds
Year-round demand, video demonstrations drive conversions
Tools/accessories best, avoid formulated products, influencer-driven
Higher AOV but also higher returns (8-12%), stick to accessories
Underrated niche, less competition, YouTube SEO works well
Safety-conscious buyers, quality over price, strong repeat purchases
B2B potential, bulk orders common, steady demand
Seasonal spikes (Q4), viral potential on TikTok, trending items sell fast
A good dropshipping profit margin is 40-60% after product cost. Most successful dropshippers aim for at least 50% margins. Below 30% makes it difficult to cover advertising costs and remain profitable. Our data shows pet supplies and automotive averaging 55-65%, while electronics runs 40-55%.
Dropshipping profit margin = ((Selling Price - Product Cost - Shipping) / Selling Price) × 100. For example, selling a $30 product that costs $12 with $3 shipping: (30 - 12 - 3) / 30 = 50% margin. Use our free profit calculator for exact numbers.
Pet supplies and automotive accessories typically have the highest margins (55-65%) due to passionate buyers who prioritize quality over price. Electronics has lower margins (40-55%) but higher average order values. Beauty products fall in between at 45-60%.
Dropshipping margins are actually comparable to retail (40-60%) when you account for the lack of inventory costs, warehousing, and upfront investment. The tradeoff is higher per-unit product costs since you are not buying wholesale in bulk.
With 50% margins and a $30 average order value, you make $15 per sale. At 100 orders/month, that is $1,500 gross profit. After advertising costs (typically 20-30% of revenue), expect $500-1,000 net profit monthly for a beginner store scaling to $5,000+ for established stores.
For beginners, high-margin products (50%+) are better because they give you more room for advertising errors. Low-margin high-volume requires precise ad optimization and higher budgets. Start with 50%+ margins, then expand to lower margins once you have proven ad strategies.
Stop guessing about margins. Browse our database of 800+ handpicked products with verified profit margins and supplier details.
Browse Products by Category