Top 10 Most Profitable Categories for Amazon Sellers in 2020 - Seller Snap

Top 10 Most Profitable Categories for Amazon Sellers in 2020

A significant factor to any Amazon seller’s success that cannot be overemphasized, is their choice of product category. Here are a few product categories you should strongly consider, given their proven profitability overtime.

 

Printed Books

If you’re looking for a product with consistent sales and a strong profit margin, then look no further than the Printed Books category. It is a niche item that sells no matter the season. The Printed Books category includes 25 sub-categories, which gives you endless possibilities for sales.

Two of the stronger sub-categories you should keep an eye out for are; Epic Adventure Novels (since many of these books have been made into blockbuster movies), and Children’s books. The majority of these books are fast sellers and part of a series, which is an excellent way to set you up for repeat customers.

Pro-tips to Succeed in the Printed Books Category

An important fact that you need to be aware of when selling books is that your choice of category corresponds to the needs of your target audience, or at the very least appeals to their likes. With 25 sub-categories, you have a wide range of topics to pick from. You can sell photography books to cookbooks and anything from self-help to test-prep books.

Using social media to aggressively promote your products and engage with your target audience is a crucial part of creating that target audience. By following their conversations and investing in tools that can help you stay on top of sales trends, you are able to optimize your FBA listings.

 

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Toys & Games

The Toys and Games product category is a very lucrative and profitable category for sellers. With an enormous marketplace that is constantly growing with toys from every blockbuster cartoon or movie, you’re sure to make big bucks. A plus for this category is that these toys and games are usually lightweight and cheap to pick up.

Pro-tips to Succeed in the Toys and Games Category

Adverts in-between kid’s TV Shows are a good start for you to discover in-demand kid’s toys and games. These are advertised in trends.

You can then go ahead to check out the annual holiday lists of trending toys and games published yearly by Amazon. This is mainly to serve as a guide to the buyers. You can take advantage of this list and Amazon’s best-selling products page to streamline your choice of products to sell. With these processes, you’re sure going to end up with hot-selling products.

Currently, toys in the Science, Tech, Engineering, Art and Maths categories, also known for short as “STEAM”, are commanding high sales volume. Also popular at the moment are the LOL dolls, water toys, and the Crayola products with games like Connect 4 and Jenga. You can check out the full lists here.

 

Electronics and Gadgets

The fourth industrial revolution is real, and it sets the trends. One crucial product category that is most popular with the trend-setting influence of the revolution is the Electronics and Gadgets Category.

From IoTs to VR and A.I, they are all influencing how our electronics and gadgets now work.  Every day, there are new releases of a variety of these products. It has been shown that consumers don’t want to be left out of the newest trends. After books, another thing Amazon is well known for is their variety of electronics. Electronics and gadgets will forever be in high demand due to their rate of evolving.

According to Amazon’s reports, in 2017, their top-selling products were electronics, from the Fire TV Stick Voice Remote Control to smart plugs. These products have successfully raked in thousands of reviews taking Amazon by storm.  These items are still hot sellers because they are constantly getting new updates.

Pro-tips to Succeed in the Electronics and Gadgets Category

Big brands vastly dominate the Electronics and Gadgets category. Since this is the case, in order to succeed in this category, you have to make good decisions regarding your chosen products. An effective way to do this is to fill a small niche and appeal to a motivated audience.

For instance, you can decide to pitch your tent in the wearable gadgets niche or narrow it down even further to sports wearable gadgets. This is the only way you can differentiate yourself from the big brands and take your share of the Electronics and Gadgets category pie.

 

Video Games

It is not possible to mention profitable product categories on Amazon without mentioning video games. The video game market is worth about $100 billion. Amazon’s commitment towards the video game market has made video games one of the most profitable product categories for Amazon sellers. As a video game seller, you must provide a variety of options for your buyer.

Pro-tips to Succeed in the Video Games Category

Amazon created Twitch, a video game streaming platform to keep gamers occupied. You should leverage this in selling video games on Amazon. Promote your video game’s product availability on Twitch to appeal to the cohort of gamers created by Amazon – the Twitch Prime Members.

 

Clothing, Shoes, and Jewellery

The Clothing, Shoes and Jewellery category is another fast-selling and highly profitable category. Millennials want an easy and convenient way to shop for stylish, trendy clothes at a low-cost.  The best way to market to Millennials is creativity, make it fun and interesting. Millennials love that Amazon allows them to receive their packages as soon as possible.

Pro-tips to Succeed in the Clothing, Shoes and Jewellery Category

In making profits on Amazon, keywords come into play. Keywords are essential to your business because they make it easy for your products to rank well when being searched. This way, you can reach more prospective customers and increase sales.

You should consider using FBA to fulfill orders and ensure you have a good and clear returns policy. Millennials are notorious for not wanting to shop online because they are unable to try on the clothes prior to purchasing, so ensuring that their package arrives quickly and that your return policy is clear and concise will ease any online shopping concerns.

 

Handmade

The idea of selling handmade products on Amazon is popular among members of Amazon Seller Central. Some Amazon sellers do not view handmade items as an inventory destined to be part of Amazon best sellers.  Others believe that handmade items are suited for Shopify and similar platforms. 

However, Handmade is a profitable category to venture into when selling products on Amazon. According to a recent survey, the average profit margin for the Handmade product category is 26%. And this is relatively high as compared to other categories found on Amazon.

Pro-tips to Succeed in the Handmade Category

When selling your own handmade products on Amazon, make sure to use high-quality photos. If your work contains special and unique detail, it needs to be emphasized. Make use of proper imagery tools to highlight the uniqueness of your item. 

 

Health, Household & Baby Care

Health is wealth as the old saying goes. In the Amazon industry, such a line is held as truth both in a figurative and literal standpoint, especially the latter. As an Amazon category, Health, Household & Baby Care is among the top 10 categories in terms of profit margin. According to the report, it provides entrepreneurs of Amazon with an average profit margin of 20%.

Pro-tips to Succeed in the Health Care Category

Otherwise known as Health & Personal Care category, this category is appealing among Amazon sellers because of its huge market. To profit in this Amazon category, make sure to maximize its wide subdivisions, including but not limited to Vitamins & Dietary Supplements, Sports Nutrition, Medical Supplies & Equipment, Sexual Wellness.

However, since this category involves health and wellness, Amazon has some strict regulations. See to it that your product is not classified under Amazon restricted categories to avoid issues along the way. Click Here for Product Approval Requirements.

 

Appliances

The Appliances category is among the Amazon best sellers. Refrigerators, washing machines, dishwashers, and ice makers are some of the most popular appliances sold on Amazon based on sales. 

If you are planning to venture into another Amazon category for increased profit, the appliances category is a must-try category with an estimated average profit margin of 24%.  

Pro-tips to Succeed in the Appliances Category

Similar to other categories or listings, you will need to create a good description along with the use of high-quality images. And since you are selling items that require operational knowledge, having a video clip showcasing the use of an appliance would be appealing to shoppers. 

Similarly, you should be aware of any local regulations concerning appliance standards. Like in the United States, you should make sure that the item you will be selling has met all US regulatory standards, and the UL approved.

 

Musical Instruments

Musical Instruments category is another category offering a great opportunity for Amazon sellers. Although not frequently included on Amazon’s bestsellers, this category amazingly offers a potential 22% profit margin.

Pro-tips to Succeed in the Musical Instrument Category

When selling musical instruments, honesty is the best policy. You should be honest about the quality and condition of your item. You must disclose the warranty type that the product comes with, especially for international Musical Instruments. To avoid issues and for smooth transactions, you should follow both the general guidelines and the specific guidelines set for the Musical Instrument category. 

 

Arts, Crafts & Sewing

The Arts, Crafts & Sewing category is among the top 10 categories in terms of reaching a high-profit margin in Amazon. With an estimated profit margin of 21%, the Arts, Crafts & Sewing category has surpassed other popular categories including Clothing, Shoes & Jewelry, Electronics, and Books. 

Pro-tips to Succeed in the Arts, Crafts & Sewing Category  

One of the best methods to increase your profit in selling arts and crafts items on Amazon is learning to diversify your inventory to cater to different demographics of buyers. This simply means that your available items should not only appeal to young audiences but also mature ones. 

In terms of optimization, you should provide your buyers with a detailed description as much as possible, especially when it comes to art materials. Shoppers in such categories are searching for a specific item for a specific task, which is why having a clear and informative description matters for shoppers. 


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