The Low COGS Trap That's Killing Your Margins

One of the biggest mistakes I see new Canadian OA sellers make is chasing products with a low buy cost just because the ROI looks decent on paper.

Let me give you a real example.

You find something for $12 CAD. Sell price is $25. After fees you're looking at maybe 30% ROI. Sounds fine right?

That's roughly $2.50 profit per unit.

Now one seller undercuts you by 50 cents. Your profit just dropped 20% on that single product. Two undercuts and you're basically breaking even.

Here's the rule I follow: If your buy cost is under $15, you need either high ROI (50%+) or high volume (50+ units a month moving consistently). Ideally both.

Low COGS + low ROI + low volume = you're working for free.

The math has to make sense BEFORE you buy. Not after.

When I'm scanning leads now, anything under $15 buy cost gets held to a way higher standard. It has to really justify the shelf space and the time.

What's your minimum profit per unit before you'll pull the trigger on a buy? Drop it below 👇

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