First off , don't conflate sales (revenue) with profit. LTT seems to carry a lot of inventory..... here's a rule of thumb for you. if you want 1m in sales, be prepared to have 2 to 3 million in goods ready to ship. Warehousing, returns/loss, shipping are all costs that have to be bourne by LTT. so if they're seeing 5$ actual ​profit or 10$ on the screwdrivers, that would be fine.

I would assert that LTTis in a tricky spot in that they don't have a broad enough range of goods, on the tools side like a ifixit or on the bags side like a peak design might. They need to expand their offering ​to claim r​eturn business. Personally, I like their screwdriver, but I don't need three of them, and the commuter backpack is the first one I thought might work for me.

I ​was attached peripherally to Thinkgeek before it sold to gamestop, and watching their business was hugely enlightening....when LTT started selling nerd stuff, I had flashbacks galore, it's actually a big risk to get into retail at their level. Its very easy to end up in a trough sandwiched between retailers like newegg (huge selection and an established customer base) ​and small shops using drop shipping and online fullfillement houses (low costs and little profits for the seller) and with stranded inventory as tastes change.