While Amazon is a lucrative platform for selling just about anything, some product categories stand out in terms of being more profitable than others. Therefore, when planning what products to sell on Amazon in 2022, it’s important to consider which product categories are Trending up and will be popular with consumers. Furthermore, you can choose to sell products in “evergreen” categories – types of goods consumers typically order year-round.
Understanding trending product categories will help boost your e-commerce sales and give you a leg up on the competition. Below, we discuss the top Amazon product categories for this year.
List of Product Categories on Amazon
First, you need to know about ALL the product categories on Amazon. Then, you can choose to sell within the ones with the most sustained demand.
- 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
Besides these categories, Amazon has gift cards, software, devices, Whole Foods Market, and vehicles. However, since third-party sellers cannot sell in these categories, we will not discuss them further here for time’s sake.
Why Is It Important to Sell Products in Top Categories?
When Amazon has such a wide array of options, why should you bother with only the top categories? That’s because these categories have the following benefits:
- High Demand: Consumers are always searching for and buying products in these categories. Therefore, if you can showcase your products in front of them, you’re more likely to make a sale.
- More Profit: Since there is more demand for products in these categories, you can charge a higher price and still make sales. In turn, this results in more profits for your business.
- Quicker Growth: If you want to take your Amazon FBA business to the next level quickly, selling in these categories is the way to do it. With more demand and profit, you’ll be able to reinvest in your store too.
Top 3 Categories on Amazon
The top three categories to sell products on Amazon are:
- Home and Kitchen: 32%
- Beauty and Personal Care: 23%
- Toys and Games: 20%
These categories indicate the most products sold on Amazon. Home and kitchen appliances are a staple in every home, which is why this category continues to be popular. Beauty products are also always in demand as people constantly look for new ways to improve their appearance.
Toys and games are popular among children and adults alike. With the coronavirus pandemic leading to more people staying at home, the demand for these products has only increased.
High Profitability in Top Categories
It shouldn’t be surprising that the top categories are also the most profitable. That’s because there is always a high demand for these products, which gives you the ability to charge more for them. To give you an idea of how profitable these categories are, below are the average profits made by sellers from each category:
- Beauty & Personal Care: 21%
- Toys & Game: 20%
- Home & Kitchen: 19%
Experience Required for Product Categories
It’s also important to note that some product categories require more experience than others. For example, if you want to sell musical instruments or home improvement products, you should have some experience with them, or knowledge of them, first.
These products are expensive, and buyers want to ensure they get what they’re paying for. So they’ll be more likely to purchase from a seller who knows what they’re talking about and can answer any questions that arise.
The same applies to automotive parts, apps, games, and scientific products. Meanwhile, the following categories require little to no experience:
- Appliances
- Books
- Video Games
- Electronics
- Toys & Games
As the list shows, most people already know how to use the products in these categories. Therefore, they don’t need a seller who is an expert on the product. As for electronics, customers can get better information from YouTube reviews and blogs than from an Amazon seller.
Fulfillment Method By Category
The Amazon FBA is a popular method for pretty much every category. However, there are some cases where it doesn’t make sense to use this method.
For example, if you’re selling food or perishable items, you’ll need to use a different method. The Amazon FBA is also not ideal for selling heavy or bulky products.
Meanwhile, the Fulfillment by Merchant method is most popular for the following categories:
- Cell Phone & Accessories
- Computers
- Apps & Games
- CDs & Vinyl
- Handmade
How to Maximize Amazon Sales After Choosing the Top Categories
Choosing the right category isn’t enough. You must ensure you’re taking the necessary steps to maximize sales. It includes:
Listing Popular Products
Even in the top categories, some products are more popular than others. Therefore, it’s important to list these items as they’re more likely to result in sales.
You can find out which products are popular by checking Amazon Best Sellers. The list is updated hourly and includes the top 100 items in each category. Simply find your category and note the products that sell the most. Pay attention to the BSR ranking.
Watching Consumer Trends
Consumer trends are always changing, and you need to stay on top of them if you want to experience sustained sales. For example, the pandemic has resulted in a change in consumer behavior.
People are now buying more online than ever before and looking for products that can help them stay healthy. Let’s say you sell beauty products. Is there a new TikTok-sensation-beauty-product? Has a celeb endorsed a new product? What factors make this product really stand out?
You need to track these types of products and sell them in your store, given you find a reputable authorized distributor offering them.
Watch For Competition
Are your competitors selling a product that is popular in your category or subcategory? If so, you should sell it too. Not only will it result in more sales, but it will show that you are staying on top of competition.
Final Words
Running an Amazon FBA business can be challenging at times, especially if you’re unfamiliar with the platform’s features, such as its PPC (advertising) dashboard, fulfillment methods, account health benchmarks (metrics) or the best sellers’ list.
That’s where e-commerce automation ensures you enjoy largely passive income without much hassle. At Elite Automation, we help you create an Amazon FBA business without requiring you to lift a finger. Sit back, relax, and experience largely passive cash flows.
