I have a International trading company and I am still looking for that Profitable product to trade in. My concern is ”What I Dont know”. I keep working on trading with products that I’m comfortable with specifically ”Skin Care ” and worried that there is a present demand for a product that I could be trading in and making a better profit but I am missing out on. Thank you.
Assuming you mean trading things that aren't illegal, my choice would be in trading information. Its cost of goods is mostly the time it takes to acquire and organize information. But as far as profits go you have to decide whether you're going to focus on something you can trade in volume or in high margin.
You could set jet airplanes or yachts, where one sale is immensely profitable, but it could take more than a year to make a single sale. Or you could trade in a high-demand item that has low margins, but sell so many of them that it makes up the difference. What kind of support structure do you have to manage either situation?
Remember that with commodities, there is almost always someone willing to take less for the same item. Selling based on price is a race to the bottom. Selling value is much more effective, but has the challenge of communicating that value and finding the right buyers.
As they say, it takes money to make money. You could sell things where there is limited manufacturing capacity, but would you have the millions of dollars of resources to manufacture them to add supply?
It's difficult to answer your question succinctly because there's no one answer. As they say so often in China the answer is "It depends."
My person feeling is that you should steer away from commodity items like skin care products. There are too many sources available to enable you to distinguish yourself easily and make your company the go-to source. While cosmetics have tremendous margins, there are regulatory issues, and there are thousands of competitors that many frankly probably do a better job than you could.
FOMO is a personal issue. So rather than focusing on finding the product for which you can be a fat vampire, how about finding the product(s) that you can be assured your evangelism is authentic and you can stand out as the most, best, or only? If your products are merely "-er" (read as better, faster, cheaper, prettier), it will always be an uphill climb with plenty of competition.
What is your target area?
I also own essentially a trading company out of the US. I think the answer to your question isn’t what you sell, but who you sell it too and how. Like someone pointed out, if an existing product has higher margins, there is so much competition in this field that the void will be saturated quick and drive those margins down fast. I saw a recent article about how Payless Shoes did a sneaky test. They rented a space in a high end area and started a fake ultra posh shoe store in it without telling anyone it was actually $20 Payless shoes. They sold $20 shoes for as high as $640 to unsuspecting rich people. Watching them comment about the quality and style was hilarious.
So I guess the answer is to private label something. And for that something to be a product that has a wide range of prices/ quality. Most likely something you know something about, like skin care. Or, be the person that finds the fads before they are fads and get in and out quick. But, that is probably a different business all together.
If private label isn’t your thing, and you aren’t a “Fad” specialist. My niche is custom stuff and it can be extremely profitable. As well as there is far less competition. I can often add 50% markup or more to items and still make the customer happy that they are getting a good deal. They have nothing to compare too as there is no “Normal” cost for something custom. But, I have a lengthy background in engineering so am well equipped to do this. On that front, the answer to your question is to add value where most of your competitors can’t. And then charge more for that value. Kelly