It is critical to know where and what customers buy when selling on Amazon or other sites. You wouldn’t want to set up shop at a flea market only to discover you’ve parked in the incorrect lot, would you? It is essential to find profitable products to sell on amazon to earn more profits.
Amazon and e-commerce are in the same boat. You’re going to have some problems if you build a product in a niche or category where very few people shop. This article will look at the most popular categories for third-party sellers. It might be challenging to decide which product category to focus on, whether you’re a brand new Amazon seller just starting or a seasoned Amazon veteran.
Profit margins vary greatly based on how much it costs to source things and how much you can sell them (less cost of conducting business – read here for more fees). Fortunately, depending on the category, average profit margins for Amazon sellers range from 17 to 26 percent. Among the higher profit margins? Handmade things are followed by high-ticket items such as computers, appliances, and instruments.
Which categories can you sell on Amazon?
- Appliances
- Apps & Games
- Arts, Crafts, & Sewing
- Automotive Parts & Accessories
- Baby
- Beauty & Personal Care
- Books
- CDs & Vinyl
- Cell Phones & Accessories
- Clothing, Shoes, and Jewelry
- Collectibles & Fine Art
- Computers
- Electronics
- Garden & Outdoor
- Grocery & Gourmet Food
- Handmade
- Health, Household & Baby Care
- Home & Kitchen
- Industrial & Scientific
- Kindle
- Luggage & Travel Gear
- Movies & TV
- Musical Instruments
- Office Products
- Pet Supplies
- Sports & Outdoors
- Tools & Home Improvement
- Toys & Games
- Video Games
Nearly every product category uses Fulfillment by Amazon (FBA), although Cell Phone & Accessories, Computers, Apps & Games, CDs & Vinyl, and Handmade use Fulfillment by Merchant (FBM).
It is essential to know about the model of sales/business
- Private labeling (making your own product/label to sell on Amazon) is widespread in nearly every product category. The most popular is Home & Kitchen and Handmade, and the least popular is Books and Video Games.
- Retail arbitrage is the practice of locating low-cost or discounted goods in brick-and-mortar businesses and reselling them online.
- Apps and games are the most popular.
- Home & Kitchen, Industrial & Scientific are the least popular categories.
- A process of obtaining low-cost or discounted goods on one website or online marketplace to resell on another is known as online arbitrage.
- Apps & Games Video Games are the most popular.
- Dropshipping is a business concept in which an Amazon seller does not store their product inventory and instead sends their customers’ orders to the manufacturer or supplier directly. Computers, Collectibles & Fine Art, and Electronics are the most popular.
