The Marketplaces have become the epicenter of e-commerce, offering consumers access to a wide range of products and services. In this sense, hybrid business models like Amazon’s are becoming increasingly relevant. According to the company Third-party sales accounted for 65% of total gross merchandise volume in 2021which represents an increase of 70% since 2011. That’s why today we’re going to show you what that means most profitable product categories on Amazon.
This growth is not surprising as marketplaces have become a great, accessible way for SMBs to offer their products to consumers, and at this point in time Amazon offers sellers a variety of options. However, success in terms of profitability seems to depend largely on the choice between the over 40 product categories on Amazon, as a study by Jungle Scout shows.
Beauty and personal care: most profitable
He 30% of sellers from Amazon choose the categories of Beauty and personal care, which is positioned as the most profitable company with a net margin of over 21%. This category is not only one of the most profitable, but also takes first place second place in the ranking of the most popular: 26% of sellers offer beauty and personal care products.
It stands out as the second best category House and kitchen30% of sellers have net margins greater than 21%. Not only is it profitable, but it is also the most popular category among Amazon sellers: 35% sell household and kitchen products.
On their side the Amazon categories for clothing, shoes and jewelry, crafts and sewingas well as electronicshave Profitability rates of more than 20%. With that in mind, it’s worth noting that apparel and electronics are two popular categories that are also comparatively profitable. However, popularity and profitability are not always related, according to ecommerceDB.
Home and kitchen: most popular
The category Home and Kitchen is the preferred option for 35% of Amazon sellerswhich is partly due to the fact that these products guarantee a solid customer base, as they are items that are part of consumers’ daily lives.
In addition, unlike other categories Specifications are missing for household and kitchen products specific, as can happen with food expiration dates. As a result, according to the study, 30% of sellers selling household and kitchen items choose to develop their own branded products.
Musical instruments: least popular
On the opposite side are the Musical instruments are among the least popular items among Amazon sellers. In fact, only 2% of sellers choose to sell these products. They follow him CDs and records, luggage and travel and video games which are only sold by 4% of sellers.
While certain categories on Amazon may be less popular among sellers, as explained ecommerceDBit is important to know that «Profitability is not determined solely by the overall popularity of a category“, But Key factors that influence profitability include a product’s competitiveness and pricing strategy and the cost of goods. Ultimately, maintaining a profitable seller profile in the market comes down to finding the perfect niche for your products.