Top 10 Most Profitable Categories for Amazon Sellers in 2021 | Top Selling Categories on Amazon

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

Amazon Most Profitable Products Sellers Should Consider

 

1. Computers

With the majority of the population staying or working at home amidst the COVID-19 pandemic, it is no surprise that the Computers category occupies the top spot for best selling categories on Amazon in 2021. An updated report showcased that this Amazon category offers an average of 28% profit margin to sellers. 

Pro-Tips to Succeed in the Computers Category

To boost your sales in the Computer category, you should sell complementary products. This means that you should think of items that go well together with computers, such as standard peripherals including mouse, mousepad, webcam, printers, and the likes. Try creating an Amazon bundle to make your listing more enticing for Amazon shoppers. 

2. Video Games

It is not possible to mention profitable product categories on Amazon without mentioning video games. The video game market is worth about $138 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.

3. 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.

4. Books 

If you’re looking for a product with consistent sales and a strong profit margin that can easily be considered best selling Amazon categories, then look no further than the Books category. It is a niche item that sells no matter the season. 

The Books category includes 25 sub-categories, which gives you endless possibilities for sales. In numbers, the average profit margin for the Books category in 2021 is 25%. 

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 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 this one of the top selling categories on Amazon. 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. 

5. Apps & Games

With the limited access to  outdoor entertainment, more consumers have turned their attention to indoor activities. This drastic change in routine due to the pandemic has increased the profitability of the already very popular and profitable Apps & Games category on Amazon, with a 24% average profit margin.                                           

Pro-tips to Succeed in the Apps & Games Category

When selling games and apps online, you should be familiar with the current trending games and applications. Have a feel of what consumers like the most. Try to establish a target market to focus your resources on products that will sell. 

Create engaging previews for your apps and games, and make them available on social media and video sharing platforms, like YouTube and Facebook. And most importantly, never forget to review the critical pre-submission checklist for your software.

6. CDs & Vinyl

Despite the increasing popularity of online music streaming platforms, like Spotify, Deezer, and Grooveshark, there still remains a demand for CDs and vinyls. Amazon sellers wanting to capitalize on this consumer demand should consider selling products under the CDs & Vinyl category. The said category is one of the best categories to sell on Amazon because of its favorable 24% average profit margin.  

Pro-Tips to Succeed in the CDs & Vinyl Category

When dealing with this particular category, you should be aware that CDs and vinyls appeal to specific audiences. For that matter, you should focus on popular products in specific genres and items on a collectible level. Additionally, the use of an AI repricer will also help you with your product pricing and Amazon Buy Box win rate.

7. Home & Kitchen

The Home & Kitchen category remains one of the best selling categories on Amazon in 2021. This is because the majority of highly saleable consumer items can easily be categorized as home or kitchen products. Thus, making this Amazon category a promising category for sellers, especially with its 23% average profit margin. 

Pro-Tips to Succeed in the Home & Kitchen Category

For you to achieve more sales in this Amazon category, you should provide a wide array of options for buyers without having to sacrifice the essential home items. Some of the saleable items under this category include but are not limited to a meat thermometer, air purifier, trash can, mattress, and curtains.

8. Pet Supplies

Over the past years, there has been an increase in pet ownership, especially during the pandemic. That is why Pet Supplies is a thriving Amazon category in 2021, with a 23% average profit margin. This is no surprise, for in the United States alone, it is estimated that more than 80 million families own a pet. 

Pro-Tips to Succeed in the Pet Supplies Category

If you aim to increase your profit within this Amazon category, it would be best to focus first on the two most popular pets globally, dogs and cats. Try to focus your inventory on items that are relevant to dog and cat owners. This may include food, clothing, and accessories.

9. Beauty & Personal Care

The beauty and personal care industry is a large and consistently growing industry. It is projected to grow to $756 billion by 2026, not to mention its average profit margin of 23%. That is why the Beauty & Personal Care category is one of the best FBA categories Amazon sellers should consider in 2021. 

Pro-Tips to Succeed in the Beauty & Personal Care Category

In order to gain good footing in the Beauty & Personal Care category, try to cover the majority of its subcategories, including but not limited to makeup, skin care, hair care, fragrance, and oral care. To win new business, you should also introduce more products that are inclined towards male consumers, men represent the fastest-growing demographic of beauty shoppers.

10. Kitchen & Dining 

Since more time is spent inside the house, more people are cooking and enhancing their gastronomic experience. Various kitchen and dining equipment are being purchased online.  And for Amazon, it has resulted in an average profit margin of 23% for their Kitchen & Dining category. 

Pro-Tips to Succeed in the Kitchen & Dining Category

For the Kitchen & Dining category, it is highly suggested that you present Amazon shoppers with the best description of your item, especially those relating to kitchen appliances. Provide high-quality images for your listing, and if possible, incorporate Amazon product videos for better product presentation.

 

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Runner-Ups for 2021

 

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 of the best selling Amazon categories 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  and will always be one of most profitable categories on Amazon  due to their rate of evolving. Thus, making items  such category as Amazon most profitable products.

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, some owning the most profitable products to sell on Amazon and dominating some of the most profitable categories on Amazon.

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.

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.

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 22%.

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. This category gives the opportunity for sellers to list the most profitable amazon products for their store.

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 20%.  

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. If products are chosen correctly for one of the best selling categories on Amazon. such items can easily become the most profitable products to sell on Amazon. Although not frequently included on Amazon’s bestsellers, this category amazingly offers a potential 17% 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 last year, with an estimated profit margin of 21%. For 2021, it is still a flourishing category for Amazon sellers to venture into.

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. This is one of the trade secrets for this one of the best selling categories on Amazon.

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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