There are 36 categories products can be put into on Amazon. With so many options, it can be hard for sellers, especially new ones, to know which ones are the most profitable categories on Amazon. There is certainly a lot of competition, in some categories more than others. So it’s important to find categories that are profitable but also not too competitive.
For a quick recap, let’s talk about what makes a product profitable.
Even if you have products in the most profitable categories on Amazon, having products that people want is vital to being successful. Products that fill a specific need or helps alleviate customers’ pain points are likely to be purchased more frequently than products that are less helpful. You also want to find products that will generate a lot of traffic. You want to avoid trying to compete with big brands that are already established since they are likely holding a lot of the market share for their products. Try looking for more niche categories that have a steady streams of traffic.
The Most Profitable Categories on Amazon
This might come as a surprise, but books are one of the most profitable categories on Amazon. Now, I’m not talking about e-books or Kindle books; I mean actual books made of paper and ink. The reason for this is that books are very popular and offer the ability to make a huge profit. If you can find books at secondhand stores, off-price book stores, garage sales, etc. that are cheap, you could sell them for much more on Amazon. This isn’t going to be true for every book, but with some easy research, when you find a book just look up how much it is being sold for on Amazon to determine what your profit margin might be.
Toys and Games
The next category will likely come as no surprise. Toys and Games, especially during the holidays, is a hugely competitive and popular category for sellers. Amazon even tries to guide shopper behavior with their annual toy list each holiday season because of how popular this category is. But it can be difficult to get into this category due to certain requirements that must be met. You can learn more about selling toys on Amazon here.
People will surely keep having babies, and as long as people have babies, they are certainly going to need lots of stuff to take care of their babies. And on top of that, babies are constantly growing. That means parents will have to keep replenishing items (especially diapers and clothes), which is great news for those selling baby products. Baby items are also fairly inexpensive to source and most of the time are lightweight (excluding larger items like swings, cribs, etc).
Clothing, Shoes, Jewelry
Amazon customers are usually not looking to spend the money for the designer fashion brands like Kate Spade or Michael Kors, but rather want to find lower cost, yet stylish items. Offering moderately priced, unique products in this category can be profitable if you have multiple sizes and colors. Jewelry touts the ability to make up to 50% or more in profit, but the key is to use long-tail keywords for your products. Exercise clothes are also majorly popular, especially around the new year when people are making new year’s resolutions.
There are certainly other categories that sellers have been wildly successful, but these are just some of the most profitable categories on Amazon. Picking a category is important, but it’s also important to have products that will sell well. That means having optimized product listings, high-quality product photos, and picking products that will get good reviews.