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7 Most Profitable Product Categories To Sell on Amazon FBA

"7 Most Profitable Product Categories on Amazon FBA"

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How a product might generate profit can be determined by how trendy the product is becoming and if it is being sold at the proper time, propelling it to the top-selling categories on Amazon.

The first thing to be aware of is Amazon’s top-selling products for 2022, particularly those that are popular during pandemic and lockdown conditions.

Second, looking into profitable Amazon KDP categories and best-seller lists.

Third, learning how to spot the ongoing modifications in the top-selling goods.

Fourth, how to increase your chances of selling products that Amazon buyers and others truly intend to purchase.

7 Most Popular Product Categories in FBA Business Right Now

"Amazon FBA Business Process Circle"

Selling the specific products on the top-selling items on Amazon alone won’t help you to be profitable. Your ultimate decision will be based on a number of variables, including the level of competition, the demand in the areas where you sell, your particular company condition, and so forth.

"Amazon shopping"

No one selection can become a bestseller overnight. You could achieve a lot by experimenting with unique technologies. Make sure you conduct market research before introducing any new items to make sure there will still be a market for them when you are ready to launch.

On the list of top selling items on Amazon in 2022 categories like personal care items, games, puzzles and fitness equipment have become popular. A product’s market demand determines how popular it is: These are the top categories, along with the share of sellers with items listed in them, according to Jungle Scout’s 2022 State of the Amazon Seller Report.

 

Top 7 Popular Product Categories On Amazon FBA

RankProduct CategoryAverage Profit Margin
1Home & Kitchen32%
2Beauty & Personal Care23%
3Toys & Games20%
4Clothing, Shoes & Jewelry18%
5Health, Household & Baby Care17%
6Sports & Outdoors16%
7Arts, Crafts & Sewing15%
Table of categories with average profit margin percentage
"Amazon product boxes"

Top 7 Profitable Amazon Products To Sell On Amazon

Popularity does not necessarily determine the profitability of the category product. Profit margins can vary depending on the cost of the products and the cost for sourcing the product and how much demand the market has on it. Average profit margins range between 15-26% depending on the product category an Amazon seller chooses and its demand in the market.

Among the higher profit margins,Handmade products may be slightly more expensive due to the manner of sourcing the raw materials and time consumed coming up with the final product, but it is the number one product category making the most of the profit margins. Followed by some high-ticket items, including computers, appliances, and instruments. 

RankProduct CategoryAverage Profit Margin
1Handmade32%
2CD & Vinyl27%
3Apps & Games25%
4Industrial & Scientific25%
5Luggage & Travel Gear25%
6Grocery & Gourmet Food23%
7Video Games23%
Table of products with profit margin percentage

Demand of Products

"Amazon sponsored ads"

Every category has profitable subcategories within it, albeit some categories may be more profitable than others. Despite being among the most popular categories for sellers, Home & Kitchen and Beauty & Personal Care both feature a large number of subcategories that are unprofitable due to growing rivalry, price wars, direct competition from Amazon, and rising PPC expenditures, etc.

Home & Kitchen vs Handmade, as an illustration. In Home & Kitchen, just 4% of sellers have a net profit of 51% or more, but in Handmade, 9% of sellers have a net profit of 51% or more. Don’t get too caught up in categories; the important thing is to identify the ideal opportunity that is in great demand and has little competition.

How to Identify Profitable Products

"Amazon profit money"

You probably have a huge list of prospective things to sell as a new merchant. However, how can you identify the one that will bring in huge cash? To locate items with a high possibility of success, you will require in-depth product research software. You may check the feasibility of a niche you already have in mind for your Amazon business with the AMZScout PRO Extension. It is simple to swiftly examine things and choose the most lucrative products to sell on Amazon thanks to this user-friendly Chrome extension.

These web resources are yet another beneficial means of product study and comparison.

  • Jungle Scout: A one-stop shop for selling on Amazon that offers tools for locating items and suppliers.
  • Camelcamelcamel.com is a free tool that tracks Amazon prices and notifies you when prices drop, making it easier for you to determine when to purchase your inventory.
  • InventoryLab is a tool that syncs with Amazon Seller Central directly to assist you in finding and acquiring lucrative inventory as well as in listing and managing your present inventory.
  • Amazon Scanner App: If you sell items on Amazon, you may use their scanner app on an iPhone or an Android phone to scan a product’s barcode to view its pricing and previous sales information before making a purchase.
  • Amazon FBA Calculator: If you’re an FBA seller, you may use Amazon’s FBA Calculator to determine your potential profits on a certain product after deducting your FBA and sourcing costs.
  • SupplySpy: Assess supplier wholesale price lists and calculate prices in bulk.


Conclusion

There are many tactics to successfully settling on products to maximise profitability of your products on Amazon FBA. Given that you are willing to be patient and experiment your way to success; in time and with some experience, you’ll understand your audience better and be able to create and distribute products to their liking, making sure you maximise your gains in the process. To learn more about Amazon FBA and profitable product niches, check out our other blogs!

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