Size, weight, and margin
Lesson notes
The goal of niche selection isn't "things that sell." It's "things that are still profitable after the shipping bill." Size and weight decide the shipping bill, so they decide the niche.
The two floors
- $200 minimum for anything that ships parcel (UPS, FedEx). Below that, a $40 shipping label and a 50% cost of goods leave you nothing.
- $1,000 minimum for anything that ships freight (pallet, LTL). Freight costs roughly the same whether the pallet holds a $600 product or a $3,000 one.
- Target net margin across the store: 30%. Some orders land at 25%, some at 40%. Thirty is the number to plan around.
Why freight items are the opportunity
| Product | Sale price | Cost of goods | Freight | Net |
|---|---|---|---|---|
| Folding workbench | $600 | $300 | ~$280 | $20 |
| 2-post car lift | $3,200 | $1,700 | ~$300 | $1,200 |
Same pallet, same truck, same freight bill. One order pays for lunch, the other pays for the month. This is the whole reason Pitstop Pro sells lifts and not floor jacks.
Applying it to your list
- Refine, don't delete. "Rugs" becomes "hand-knotted wool rugs." "Office chairs" becomes "ergonomic office furniture."
- For every niche on the worksheet, note whether the typical item ships parcel or freight, and whether it clears the floor for its type.
- Add niches you'd never buy yourself. Laser engravers, CNC routers, and backyard playsets all clear the freight floor easily.