Wholesaling is the practice of purchasing low-cost or discounted goods in bulk in order to sell as individual units in a retail marketplace.Least popular: Home & Kitchen, Sports & Outdoors.Most popular: Apps & Games, Video Games.Online arbitrage is a method of finding a low-cost or discount product on one website or online marketplace to resell on another marketplace.Least popular: Home & Kitchen, Industrial & Scientific.Retail arbitrage is a method of finding low-cost or discount goods in brick-and-mortar retail stores in order to resell online.Private label (creating your own product/label to sell on Amazon) is popular across nearly every product category, but MOST popular in Home & Kitchen and Handmade and LEAST popular in Books and Video Games.Fulfillment by Amazon (FBA) is popular for nearly every product category, but Fulfillment by Merchant (FBM) is more popular among Cell Phone & Accessories, Computers, Apps & Games, CDs & Vinyl, and Handmade.Appliances (27% of sellers say they have beginner seller experience).Which product categories require the least experience ? Musical Instruments (50% of sellers say they have advanced seller experience).Which product categories require a high level of experience ? Some categories stand out as having noticeably lower monthly sales (under $1,000): Books, Handmade, and Cell Phone & Accessories.Īnd others see much higher monthly sales ($50,000+): Musical Instruments, Industrial & Scientific, and Computers. Sales: What are the average monthly sales for Amazon product categories?Īmazon sellers across nearly every category have average monthly sales in the range of $1,000-25,000. The point is, you still need to find the right opportunity that’s in high-demand with low-competition - so don’t get too hung up on categories. Only 4% of sellers have 51%-100% net profit in Home & Kitchen, whereas 9% of sellers have 51%-100% net profit in Handmade. Less popular categories can be more profitable than popular categories.
Home & Kitchen and Beauty & Personal Care are among the top categories among sellers, but both have plenty of subcategories that are not profitable because of increased competition, price wars, direct competition from Amazon, increased PPC costs, etc.Some categories may be more profitable than others, but every category has profitable sub-categories within it.Profitability is a critical consideration when selling on Amazon, but keep an open mind to find the true best opportunity. Among the higher profit margins? Handmade products (which still may cost a lot in raw materials and time), followed by some high-ticket items, including computers, appliances, and instruments. Profit margins can vary wildly depending on how much products cost you to source and how much you can sell them for (less cost of doing business - see more on fees here).įortunately, for most Amazon sellers, average profit margins range between 15-26% depending on the category. Profitability: Which Amazon product categories are most profitable to sell in? What are the main differences among Amazon product categories? 1. Looking at those categories, it’s important to ask yourself: Are these categories too competitive? The last thing you want to do is jump into an oversaturated market with little to no chance of landing on page one of Amazon’s search results.īut, while these broad categories may be very popular and oversaturated, I’ll explain how you can dig deeper into various subcategories to find better product opportunities later on. **Sellers could select multiple categories. Remaining categories in order of popularity Electronics In this article, we’ll look at the most popular categories to sell in as a third-party seller.Īccording to Jungle Scout’s 2022 State of the Amazon Seller Report, these are the top categories**, including the percentage of sellers who have products listed in them. If you create a product in a niche or category that very few people shop in, you’re going to have some trouble. You wouldn’t want to set up shop at a flea market and realize you’re in the wrong parking lot, right? When selling on Amazon, or any other platform, it’s important to know where and what consumers are buying. *This excludes some categories in which most third-party sellers can’t/don’t sell, including Amazon devices, gift cards, software, vehicles, and Whole Foods Market. With many categories to choose from, how do you narrow down your research and find the best niche to focus on? Which product categories have the most or least competition? The highest profit margins? The most opportunity to grow your product offerings? We’ll cover all that and more. Whether you’re a brand new Amazon seller beginning your research or an experienced Amazon vet, it can be difficult to figure out which product category to focus on.
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