If you’re researching the worst products to sell online in 2026, you’re already ahead of most people. The majority focus on what’s “hot” — very few look at what quietly destroys margins.
Over the years we’ve sold everything from impulse-buy dog hats to software to drop-shipped jewellery. Some did very well. Others looked promising… until returns, breakage, shipping costs, and customer expectations started eating into profit.
This guide focuses on the product types that consistently cause problems — especially under Australian conditions, where shipping distances, handling, and customer expectations amplify small mistakes.
If you want the opposite list — what tends to work consistently — see our guide to the best products to sell online in Australia in 2026.
This isn’t to say you shouldn’t sell these products. You can — but only if you understand the risks and structure your pricing, policies, and logistics properly. Whether you’re using your own fulfilment, Amazon FBA, or drop-shipping, the same pressures apply.
Quick 2026 note: the categories themselves haven’t changed much. These products remain difficult because of the same core issues — returns, fragility, compliance, and unrealistic customer expectations. The details evolve, but the fundamentals don’t.
Most eCommerce failures don’t come from bad marketing — they come from selling the wrong product.
Return rate benchmarks (and why they matter)
Update note: We’ve changed the return-rate phrasing in this article from “as high as” to return rate benchmarks.
What’s a benchmark? A benchmark is a typical, industry reference figure for a product category, based on published research. It’s not a promise that your store will match that number — your actual return rate depends on your products, pricing, customer expectations, product descriptions, sizing accuracy, and returns policy. Benchmarks are useful because they let you compare categories on a like-for-like basis before you commit to selling them.
Returns are where margins go to die. If you’re selling low-margin products with high return friction, you’re starting the race with a broken leg.
- Overall US returns scale: The National Retail Federation (NRF) projects US retail returns of $849.9B in 2025 and estimates 19.3% of online sales will be returned. NRF: 2025 Retail Returns Landscape
- Why returns hurt: Optoro reports that, on average, it costs $26.50 to process each $100 of returned merchandise. Optoro: The State of Returns Report 2024 (PDF)
Why Some Products Fail Online (Even When Demand Looks Strong)
Most people assume products fail because there’s no demand. In reality, many of the worst products to sell online fail despite strong interest — because the operational side breaks down.
From experience, the same failure patterns show up again and again:
- High return rates: sizing issues, unmet expectations, or “not as described” complaints
- Fragility: items that don’t survive shipping without damage
- Low margins: heavy competition driving prices down while costs remain fixed
- Complex logistics: difficult packaging, inconsistent suppliers, or long delivery times
- Customer expectations: products that attract demanding buyers or frequent disputes
These factors matter more in Australia than most global guides admit. Shipping distances are longer, costs are higher, and replacing damaged or returned items can quickly erase profit.
Before choosing any product, it’s worth asking a simple question: what happens when something goes wrong? If the answer is expensive, time-consuming, or unpredictable, you’re likely looking at a risky category.
It’s not the sale that matters — it’s what happens after the sale that determines profit.
1. Electronics
Electronics are highly competitive and often have low-profit margins due to market saturation, rapid technological advancements, and the high costs of shipping and storage. Many consumers tend to shop for electronics online for better deals, but the downside is that they may be more prone to ordering different types of electronic devices and returning the ones that don't meet their requirements. The return rate benchmark for Electronics (consumer electronics) is 11% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For instance, companies like Best Buy, Amazon, and Walmart have historically experienced high rates of product returns and low-profit margins with electronic items. To succeed in selling electronic products, online retailers must differentiate their offerings and provide exceptional customer service.
Example: Amazon's electronics section
2. Clothing
Clothing is subjective and may have fit and quality issues. As a result, online retailers often experience high return rates and low-profit margins. Customers can order different sizes, colors, and styles online, and this leads to returns that can be challenging to resell or dispose of. The return rate benchmark for Clothing is 24% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, clothing companies like J.Crew and Nordstrom have reported high return rates and low-profit margins with clothing items. To succeed in selling clothing online, companies must invest in proper sizing tools, accurate product descriptions, and quality photography.
3. Cosmetics
Cosmetics can have high return rates due to customer dissatisfaction with the product's performance, allergies, and skin irritation. Additionally, cosmetic items are difficult to resell or dispose of once they've been returned. The return rate benchmark for Cosmetics (cosmetics & body care) is 11% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For instance, Sephora, Ulta, and other makeup retailers have experienced a high volume of returns and low-profit margins with cosmetic items. To succeed in selling cosmetics online, companies must offer detailed product descriptions, accurate colors, and formulations, and provide excellent customer service and consultation.
4. Fragrances
Fragrances can also have a high return rate due to customer dissatisfaction with the scent or product quality. As with cosmetics, fragrances are challenging to resell or dispose of once they've been returned. The return rate benchmark for Fragrances (within cosmetics & body care) is 11% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, fragrance companies like Sephora and Ulta have reported high return rates and low-profit margins with fragrance items. To succeed in selling fragrances online, companies must provide detailed scent descriptions, accurate colors, and formulations, and offer sample products or testers to allow customers to try before purchasing.
5. Jewelry
Jewelry is highly competitive, and online sellers often have to offer significant discounts to remain competitive, resulting in low-profit margins. Additionally, jewelry is subjective, and customer preferences can vary significantly, leading to high return rates. The return rate benchmark for Jewellery is 8% — source: Loop Returns (ecommerce jewellery market average return rate “slightly more than 8%”).
For example, jewelry companies like Tiffany & Co. and Blue Nile have reported low-profit margins and high return rates with jewelry items. To succeed in selling jewelry online, companies must offer unique designs and styles, accurate product descriptions, and quality product photography.
6. Pet products
Pet products can have a high return rate due to issues such as incorrect sizing or dissatisfaction with the product's quality. Additionally, competition is intense, and price sensitivity is high. The return rate benchmark for Pet products is 10% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, pet supply companies like Chewy and Petco have reported high return rates and low-profit margins with pet products. To succeed in selling pet products online, companies must offer unique and high-quality products, excellent customer service, and accurate sizing information.
7. Home decor
Home decor is subjective, and customer tastes can vary significantly, resulting in low-profit margins and high return rates. Online retailers often have to offer significant discounts to remain competitive in this space. The return rate benchmark for Home decor (within furniture & household goods) is 11% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, home decor companies like Wayfair and Overstock have reported low-profit margins and high return rates with home decor items. To succeed in selling home decor online, companies must offer unique and trendy designs, high-quality products, and exceptional customer service.
8. Furniture
Furniture is bulky and expensive to ship, resulting in higher shipping costs that can eat into profit margins. Additionally, furniture is subjective, and customer preferences can vary significantly, leading to high return rates. The return rate benchmark for Furniture (furniture & household goods) is 11% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, furniture companies like Ashley Furniture and Raymour & Flanigan have reported low-profit margins and high return rates with furniture items. To succeed in selling furniture online, companies must offer unique and trendy designs, high-quality products, and exceptional customer service, including online consultations and virtual room planning tools.
9. Outdoor equipment
Outdoor equipment can have a high return rate due to issues such as incorrect sizing or dissatisfaction with the product's quality. Additionally, competition is intense, and price sensitivity is high. The return rate benchmark for Outdoor equipment (sports & outdoor) is 10% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, outdoor equipment companies like REI and Cabela's have reported high return rates and low-profit margins with outdoor equipment items. To succeed in selling outdoor equipment online, companies must offer high-quality products, accurate sizing information, and exceptional customer service, including product recommendations and expert advice.
10. Food products
Food products can have a high return rate due to issues such as expired or damaged goods, dissatisfaction with the product's taste, or incorrect orders. Additionally, online retailers often have to offer significant discounts to remain competitive, resulting in low-profit margins. The return rate benchmark for Food products (food & beverages) is 14% — source: Telsey Advisory Group (citing Statista: “Most returned online US purchases”, data as of Dec 2023).
For example, food companies like Omaha Steaks and Harry & David have reported low-profit margins and high return rates with food products. To succeed in selling food products online, companies must offer high-quality products, excellent packaging, and reliable shipping methods to ensure that products arrive in good condition. Additionally, providing detailed product descriptions and nutritional information can help customers make informed purchases and reduce returns.
General Requirements for Success
To succeed in selling these products online, companies must offer unique and high-quality products, accurate product descriptions, excellent customer service, and reliable shipping methods. It is essential to conduct proper research and analysis to determine which products are suitable for your business model and target audience. While there are potential challenges in selling these products online, they can still be profitable with the right strategies and execution.
This clearly mitigates against drop-shipping unless you are prepared to do it at scale. The return rates we see above can literally kill your business! Most of all, a strategy for minimizing returns is required! Here are a few pointers for each product.
1. Electronics
- Provide detailed product descriptions, including technical specifications, dimensions, and compatibility information.
- Offer customer service and technical support to help customers troubleshoot issues before initiating a return.
- Use quality product photography and videos to showcase the product's features and appearance accurately.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
2. Clothing
- Invest in accurate sizing tools, including size charts, fit guides, and reviews from customers who have purchased the same product.
- Provide detailed product descriptions, including fabric type, care instructions, and measurements.
- Use high-quality product photography to showcase the product's fit and appearance accurately.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
3. Cosmetics
- Provide detailed product descriptions, including ingredients, application techniques, and suitability for different skin types.
- Offer sample products or testers to allow customers to try before purchasing.
- Use high-quality product photography and videos to showcase the product's performance and appearance accurately.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
4. Fragrances
- Provide detailed scent descriptions and reviews from customers who have purchased the same product.
- Offer sample products or testers to allow customers to try before purchasing.
- Use high-quality product photography to showcase the product's appearance accurately.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
5. Jewelry
- Provide accurate product descriptions, including metal type, gemstone type and quality, and dimensions.
- Use high-quality product photography to showcase the product's appearance accurately.
- Offer virtual try-on tools or 360-degree product views to allow customers to see how the product looks when worn.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
6. Pet products
- Provide accurate sizing information, including breed-specific recommendations and measurements.
- Use high-quality product photography to showcase the product's appearance and features accurately.
- Offer expert advice and recommendations to help customers choose the right product for their pet.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
7. Home decor
- Provide accurate product descriptions, including dimensions, materials, and style.
- Use high-quality product photography to showcase the product's appearance and features accurately.
- Offer virtual room planning tools or 3D visualization tools to help customers see how the product will look in their space.
- Implement a user-friendly return policy with clear guidelines and restrictions to manage customer expectations and prevent abuse.
8. Furniture
- Provide accurate product descriptions, including dimensions, materials, and style.
- Use high-quality product photography to showcase the product's appearance and features accurately.
- Offer virtual room planning tools or 3D visualisation to reduce “not what I expected” returns.
Obviously, these are good general guidelines, but your products each require their own consideration. For instance, furniture and all bulky goods: Make sure the customer understands that unless the delivered products are faulty, return costs are to the customer's account - you must have a solid, legally drafted terms and conditions of sale on your website. Good luck!
What products do not sell well online?
Products that do not sell well online are usually those with high return rates, fragile construction, or low profit margins. In many cases, the issue isn’t demand — it’s the cost and complexity of fulfilling orders reliably.
The worst products to sell online typically include items that:
- Are easily damaged during shipping
- Have inconsistent sizing or quality
- Attract frequent returns or disputes
- Compete heavily on price with little margin
- Depend on unreliable suppliers or long delivery times
In Australia, these problems are amplified by higher shipping costs and longer delivery distances, which can quickly turn a seemingly good product into a loss-making one.
The products that don’t sell well aren’t always unpopular — they’re often just too expensive to sell properly.
Frequently Asked Questions: The Ten Worst Products to Sell Online
Why are electronics considered among the worst products to sell online?
Electronics often have low-profit margins due to market saturation and rapid technological advancements. Additionally, they tend to have high return rates, with consumers frequently returning items that don't meet their expectations.
What challenges do online sellers face when selling clothing?
Clothing sales online are challenging due to subjective fit and quality perceptions. High return rates are common as customers may order multiple sizes or styles and return those that don't fit or meet expectations.
Why are cosmetics risky to sell online?
Cosmetics can lead to high return rates due to customer dissatisfaction, allergies, or skin irritation. Once opened, these products are difficult to resell, leading to potential losses for the seller.
What makes fragrances a challenging product for online sales?
Fragrances are subjective, and customers may be dissatisfied with scents they haven't tested in person. This leads to higher return rates and challenges in reselling returned items.
Why is jewelry considered a tough product to sell online?
Jewelry sales online are highly competitive, often requiring significant discounts to attract buyers. Additionally, customer preferences vary widely, leading to higher return rates and lower profit margins.
What issues arise when selling pet products online?
Pet products can have high return rates due to sizing issues or dissatisfaction with quality. The market is also highly competitive, and price sensitivity is high among consumers.
Why is home decor a challenging category for online retailers?
Home decor is subjective, and customer tastes vary significantly. This leads to high return rates and the need for significant discounts to remain competitive, affecting profit margins.
What makes furniture sales difficult in eCommerce?
Furniture is bulky and expensive to ship, leading to higher shipping costs that can erode profit margins. Additionally, customer preferences vary, resulting in higher return rates.
Why is outdoor equipment considered a risky product to sell online?
Outdoor equipment often faces high return rates due to sizing issues or dissatisfaction with product quality. The market is also highly competitive, with consumers being price-sensitive.
What challenges do online sellers face with food products?
Food products can have high return rates due to issues like expired or damaged goods, taste dissatisfaction, or incorrect orders. Additionally, online retailers often need to offer significant discounts to remain competitive, affecting profit margins.
Are these still the worst products to sell online in 2026?
Mostly, yes. What changes year to year is the pressure (shipping costs, platform rules, and return behaviour), not the underlying risk profile. These categories still tend to combine tight margins with higher return risk, breakage, compliance headaches, or expectation gaps. If you sell them, win by being brutally clear on specs, delivery limits, and returns.
What are the worst products to sell online for beginners?
The worst categories for beginners are usually the ones where a single mistake costs you weeks of margin: bulky or fragile items, high-return sizing products, and regulated or hazardous goods. Start with products you can describe precisely, pack reliably, and support after the sale — and keep your returns policy and delivery limits crystal clear.
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External references (useful sources)
If you want to go deeper (or sanity-check return policies, shipping limits, and platform rules), these are solid starting points:
Internal references (more SBW reading)
If you want to go deeper on returns, platform choices, selling rules, and the operational realities that make some categories “hard mode”, these SBW posts are useful next steps:
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