Facebook Twitter

0

Amazon product categories: graphic of different items

Top Amazon Product Categories

Whether you’re a brand new Amazon seller beginning your research or an experienced Amazon vet, it can be difficult to figure out which product category to focus on. 

With many categories to choose from, how do you narrow down your research and find the best niche to focus on? Which product categories have the most or least competition? The highest profit margins? The most opportunity to grow your product offerings? We’ll cover all that and more. 

Which categories can you sell on Amazon?

  • 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

*This excludes some categories in which most third-party sellers can’t/don’t sell, including Amazon devices, gift cards, software, vehicles, and Whole Foods Market.

 

Amazon’s most popular categories 

When selling on Amazon, or any other platform, it’s important to know where and what consumers are buying. You wouldn’t want to set up shop at a flea market and realize you’re in the wrong parking lot, right? 

The same goes for Amazon and e-commerce. If you create a product in a niche or category that very few people shop in, you’re going to have some trouble. In this article, we’ll look at the most popular categories to sell in as a third-party seller.

According to Jungle Scout’s 2022 State of the Amazon Seller Report, these are the top categories**, including the percentage of sellers who have products listed in them.

Top 10 categories
Home & Kitchen 32%
Beauty & Personal Care 23%
Toys & Games 20%
Clothing, Shoes & Jewelry 18%
Health, Household & Baby Care 17%
Sports & Outdoors 16%
Arts, Crafts & Sewing 15%
Books 15%
Kitchen & Dining 14%
Baby 14%

 

Remaining categories in order of popularity

Electronics 14%
Tools & Home Improvement 13%
Pet Supplies  13%
Office Products 12%
Garden & Outdoor 12%
Grocery & Gourmet Food 10%
Appliances 8%
Cell Phone & Accessories 8%
Automotive Parts & Accessories 7%
Handmade 6%
Apps & Games 6%
Industrial & Scientific 5%
Computers 5%
Video Games 4%
Collectibles & Fine Art 4%
CDs & Vinyl 3%
Luggage & Travel Gear 3%
Musical Instruments 2%

**Sellers could select multiple categories.

Looking at those categories, it’s important to ask yourself: Are these categories too competitive? The last thing you want to do is jump into an oversaturated market with little to no chance of landing on page one of Amazon’s search results.

But, while these broad categories may be very popular and oversaturated, I’ll explain how you can dig deeper into various subcategories to find better product opportunities later on. 

 

What are the main differences among Amazon product categories?

1. Profitability: Which Amazon product categories are most profitable to sell in?

Profit margins can vary wildly depending on how much products cost you to source and how much you can sell them for (less cost of doing business — see more on fees here). 

Fortunately, for most Amazon sellers, average profit margins range between 15-26% depending on the category. Among the higher profit margins? Handmade products (which still may cost a lot in raw materials and time), followed by some high-ticket items, including computers, appliances, and instruments. 

Rank Product Category Average Profit Margin
1 Handmade 32%
2 CD & Vinyl 27%
3 Apps & Games 25%
4 Industrial & Scientific 25%
5 Luggage & Travel Gear 25%
6 Grocery & Gourmet Food 23%
7 Video Games 23%
8 Arts, Crafts & Sewing 22%
9 Pet Supplies 22%
10 Musical Instruments 21%
11 Beauty & Personal Care 21%
12 Baby 21%
13 Sports & Outdoors 21%
14 Automotive Parts & Accessories 21%
15 Garden & Outdoor 20%
16 Appliances 20%
17 Toys & Games 20%
18 Tools & Home Improvement 20%
19 Clothing, Shoes & Jewelry 20%
20 Books 20%
21 Kitchen & Dining 19%
22 Office Products 19%
23 Electronics 19%
24 Collectibles & Fine Art 19%
25 Health, Household & Baby Care 19%
26 Home & Kitchen 19%
27 Cell Phones & Accessories 18%
28 Computers 16%
Profitability is a critical consideration when selling on Amazon, but keep an open mind to find the true best opportunity.
  • Some categories may be more profitable than others, but every category has profitable sub-categories within it.
  • Home & Kitchen and Beauty & Personal Care are among the top categories among sellers, but both have plenty of subcategories that are not profitable because of increased competition, price wars, direct competition from Amazon, increased PPC costs, etc.
  • Less popular categories can be more profitable than popular categories. For example, Home & Kitchen vs. Handmade. Only 4% of sellers have 51%-100% net profit in Home & Kitchen, whereas 9% of sellers have 51%-100% net profit in Handmade. 

The point is, you still need to find the right opportunity that’s in high-demand with low-competition — so don’t get too hung up on categories.

2. Sales: What are the average monthly sales for Amazon product categories?

Amazon sellers across nearly every category have average monthly sales in the range of $1,000-25,000. 

Some categories stand out as having noticeably lower monthly sales (under $1,000): Books, Handmade, and Cell Phone & Accessories.

And others see much higher monthly sales ($50,000+): Musical Instruments, Industrial & Scientific, and Computers.

3. Selling experience:

Which product categories require a high level of experience?

  • Musical Instruments (50% of sellers say they have advanced seller experience)
  • Industrial & Scientific
  • Tools & Home Improvement
  • Apps & Games
  • Automotive Parts & Accessories

Which product categories require the least experience?

  • Appliances (27% of sellers say they have beginner seller experience)
  • Books
  • Video Games
  • Electronics 
  • Toys & Games

4. Fulfillment method: 

5. Sales/Business model:

  • Private label (creating your own product/label to sell on Amazon) is popular across nearly every product category, but MOST popular in Home & Kitchen and Handmade and LEAST popular in Books and Video Games.
  • Retail arbitrage is a method of finding low-cost or discount goods in brick-and-mortar retail stores in order to resell online.
    • Most popular: Apps & Games
    • Least popular: Home & Kitchen, Industrial & Scientific
  • Online arbitrage is a method of finding a low-cost or discount product on one website or online marketplace to resell on another marketplace.
    • Most popular: Apps & Games, Video Games
    • Least popular: Home & Kitchen, Sports & Outdoors
  • Wholesaling is the practice of purchasing low-cost or discounted goods in bulk in order to sell as individual units in a retail marketplace.
  • Dropshipping is a business model where an Amazon seller does not keep their own product inventory, but instead, transfers their customers’ orders directly to the manufacturer or supplier.
    • Most popular: Computes, Collectibles & Fine Art, Electronics
    • Least popular: Luggage & Travel Gear, Grocery & Gourmet Food
  • Handmade sellers are people who create their own products to sell on the Amazon marketplace. 
    • Most popular: Handmade/Handcrafted Products, Collectibles & Fine Art
    • Least popular: Pet Supplies, Beauty & Personal Care

 

Why do so many people sell in Home & Kitchen?

It’s no surprise that the Home & Kitchen category is the most popular among sellers; everyone uses some type of home or kitchen product in their everyday lives.

However, that’s not the only reason why Home & Kitchen is the go-to category for so many sellers. Other reasons include:

  • Lower barrier to entry: Selling in this category is easier than others because it doesn’t restrict new sellers from listing in it. See restricted categories here
  • More intuitive product ideas: Everyone has some type of kitchen or home product in their house (think spatulas, utensils, pillows, curtains, etc.), whereas in other categories like Industrial/Scientific or Computers, many people don’t have much context for those types of products.
  • Fewer complicated requirements: Supplement sellers need to follow Amazon compliance and federal regulations, food must have an expiration date, toy sellers are restricted during Q4, etc. Home & Kitchen has fewer of these regulations.
  • Easy to manufacture: Finding a supplier to manufacture a kitchen product is fairly easy in comparison to many other types of items. Search through kitchen supplies on Alibaba and you’ll see how easy it is to get almost any kitchen product you can think of.

According to Jungle Scout’s State of the Amazon Seller Report, 92% of people who sell in Home & Kitchen created their own private label products, making it much more difficult to launch products in this category. 

 

Should you sell in a popular product category?

When conducting your product research in a popular category, there are a few things to consider. 

1. Competing with Amazon

Half of Amazon sellers (50%) say Amazon sells its own products that directly compete with theirs. 

For example, Amazon will feature its own private label products ahead of yours (even if they aren’t ranked as well). 

This Amazon brand is featured ahead of all the sponsored products and organic results.

Amazon product categories: diapers

An “AmazonBasics” product will typically have a lower price than your product. 

Fortunately, not every customer wants the most basic and inexpensive option, and many shop based on brand, product reviews, features, or other differentiators. (See more consumer preference data here.)

2. Competing with other sellers

Typically in a popular category, like Home & Kitchen, many sellers identify a niche with a large volume of sales and think they can take a piece of the pie.

In reality, they may just be making it harder on themselves. You may see a niche like “apple slicers” and think, “Wow, the top sellers do over $100,000 in sales. I should sell this too.” 

But when you dive deeper, you see this particular niche is very oversaturated; many sellers have hundreds of reviews, low pricing, and there is nothing that really differentiates each product that is offered.\

A new seller might not think about that and end up attempting to sell a product that cannot compete in an established market. 

3. Higher cost of advertising 

Categories that are more saturated will have higher advertising costs, which of course come from increased competition angling for the same customers and keywords. 

This means you may pay a higher cost per click (or CPC), which might mean your business breaks even or even loses money if you don’t monitor your ad spend closely. 

According to Keyword Scout, the keyword “diapers” has an estimated exact match brand bid of $35.96, exact match sponsored product bid of $1.40, and broad match of $1.28 per click. 

This means you will be paying a lot of money per click when you first launch your product to try and compete with the top sellers.

It is difficult to stand out in this highly competitive product if you do not differentiate your product from the competition. When it comes to diapers, there’s only so much differentiation you can do, but there’s a lot more flexibility in other product spaces. We’ll get to that soon!

 

How you can find a less competitive category to sell in

1. Use Google trends 

A great free way to keep an eye on what consumers are interested in is Google Trends. Make a point to check out Google Trends every week or so and see if you can identify opportunities to create products. For example, is gym equipment trending? You might want to explore this as a sales opportunity.

Simply type in a broad keyword into Google Trends and it will show you the popularity of that topic and if it is trending up or trending down. You can also view related topics, demographics, and related queries which you can use for keyword research. Take some time to explore around this free tool and see what you come up with!

Once you have found a trending niche, you can plug that keyword into Jungle Scout to see if you have a good opportunity to sell on Amazon. 

2. Explore with Keyword Scout & Opportunity Finder 

Use Jungle Scout’s suite of powerful tools to help you conduct more accurate product research and to find low-competition, high-demand products. 

These tools simplify the way you do keyword and product research. 

Keyword Scout helps you generate valuable and highly relevant keywords you can use in your product listings and Amazon PPC ad campaigns. It will also calculate how much you should be spending per keyword to reach the first page.

Opportunity Finder allows you to plug in specific criteria to find countless opportunities with high demand and low competition. Turn a keyword into a market segment, and see in-depth data on sales performance, emerging trends, and competitive insights.

Amazon product categories: Keyword Scout

How it works:
  • Disregard category popularity: A better chance at profitability depends on the niche chosen, the competitiveness of your product, price, cost of goods, etc. Categories that are less active could mean more opportunities for sellers. 
  • Find a low-competition niche: The idea is to start with a broad topic and conduct deeper research into your initial subject. While the broad subject you searched may be highly competitive, the deeper you dig down the “rabbit hole,” the more likely you’ll discover an untapped market. (Read about how to find a low competition niche here.) 
  • Conduct product research in these categories: If you don’t have a product in mind and the product category doesn’t really matter to you, then consider searching through the less obvious category options.

3. Monitor consumer trends 

72% of consumers surveyed in our Consumer Trends Report Q1 2022 stated that rising inflation has affected their spending on consumer goods, and 70% will be making fewer impulse purchases in 2022. 

While that may be the case, the home improvement and homebody economy will continue to grow in 2022. 62% of consumers have a greater interest in self-care now than before the pandemic started, and 61% of consumers have a greater interest in cooking at home.

Now would be a good time to invest in products consumers can use to enhance their homes and boost their wellness. 

Shopping behaviors are always changing, but while you might not be able to predict drastic fluctuations in demand every time, it’s a good idea to stay aware of how consumer demand in the retail industry is shifting in response to current events.

Some good news? Shopping online — and on Amazon — is increasingly entrenched in U.S. consumer behavior, and 65% of consumers will continue to shop on Amazon in 2022 and in the future. 

Read more about how consumer behavior is changing in our quarterly Consumer Trends Report.

 

Does it matter what Amazon category you sell in?

As you can see from the data, there are profitable sellers in every category on Amazon, which means finding a category or market with limited competition won’t be easy. But it will be worth it!

Just keep the following in mind:

  • Choosing a category to sell in will depend on the results of your product research, the competitiveness of the sub-category, and the demand for the product.
  • Don’t let sentimentality dictate which category you sell in. Let the data (and demand) determine your category. In other words, don’t sell a product with high competition and low demand just because you use it all the time.
  • Follow through. Your profitability is dependent on how you run your business after you find the right product. Make sure you know how to: conduct proper product research, source quality products, negotiate pricing, present a higher perceived value, run profitable PPC campaigns, create an optimized listing, and more

 

To learn more, check out this video that helps you decide which category to sell in! 

Want to learn more about Jungle Scout and how our tools can help you find a profitable product? Click the “Learn More” button below. 

Want more info or a deep dive into a certain Amazon product category? Let us know in the comments!

 

32 comments on “Top Amazon Product Categories

  1. This article is really thorough, informative and intresting but…
    the one thing it seems to ignore is that many sellers (or me at least) sell across many categories. We don’t focus on the category, we focus on the product opportunity.
    so while the data is useful to know, it doesn’t really represent the way that many people sell, and the thought of following a niche is a bit of an old line developed by internet marketers to shoehorm buyers into easier product sales.

    1. Hi Tony,

      Yes, I agree with you. As a seller myself, I focus on the product itself and not so much the category. Thanks for the comment.

  2. Hi Brian, as a newbie I don’t really have a product in mind but wish to become a seller, in this case, which category should I pick? With high profitability and less competition?

    1. Hi Joe,

      That is hard to answer as all categories have profitable products you can sell. Try to start with something that you are interested in and do some research using Jungle Scout to see what the demand and competition is like.

  3. Hello
    I have a product that I want to introduce on Amazon. I invented it and marketed it with varying degrees of success pre-Internet.
    I believe it would do well in Home improvement/tools category. I am trying to create a hands-free business at this time. That is why I have contacted a resaler of Amazon Products. She indicated that she would prepay me for orders and I would have my manufacturer direct ship them to her after I receive payment.
    I don’t know if this is a good arrangement for selling on Amazon. But it seems like a good option for me achieving a hands-free business. I don’t know how to choose a reseller or what to expect in terms of pricing, performance, and profitability to me.
    I was also wondering about sales statistics on Amazon per day in the home-improvement category or tool category.
    Is there anyway you can help me with this?

    1. Hi Eric,

      So you would be providing another seller your product at a wholesale cost? If you want a true hands-free business, that is a great way to do so as you don’t have to deal with getting everything set up on Amazon and launching the product. Just make sure the reseller has the experience and can make sure your listing is optimized with good images, keywords, and sale copy.

      The home-improvement category is very popular on Amazon. Look for similar products you are selling and Jungle Scout can tell you the daily sales estimates for a specific product.

    1. Hi Richard,

      Well, in that case, you should test each advertising solution Amazon offers you. There’s not one program I can say will work best for your product. Run tests and see which gives you the best return.

  4. Very very helpful!!!+)))
    Just waiting for Amazon to approve my application to be an Amazon seller,,,I can’t wait!!!+)))

  5. Hi,
    i am thinking of launching my first product under my brand and category for my first product is beauty and personal care. I have 2 questions.
    first one is if i have a brand name, do i need to stick to one category where i sell all my products? for example i should only launch more products in beauty and personal care category.
    Or i can launch my second third and forth product which would be from a different category, for example home and kitchen.

  6. I would like to know which categoria the product SMART TOILET SEAT WITH ELECTRIC BIDET is belong on Amazon?
    Is it belong to the categoria FURNITURE and DECOR?

    I am appreciate it for your help.

  7. Hi please can you help me. I have purchased the jungle scout extension and am struggling to work out what “sellers” means at the top of the jungle scout pop down below a product. Please can you help me
    Thanks

  8. This is great info! I am so happy to have found your site. I sell handmade t-shirts – which is a better category for me to list in? Handmade or clothing? I need variants but the clothing category seems very competitive? What is your professional expert opinion?

  9. Thank you Brian for your exceptionally clear explanation of the Amazon product categories and how to figure out which products are profitable! As a new seller you’ve given me a really valuable perspective.

  10. If my product can be listed in more than one category, should I choose the category that is less popular? Thank you!

    1. Hi Paul,

      I would choose the category that is less popular since you will have a better chance of ranking higher in that category.

  11. Brian, this is the best thing you could ever do for me who is a newbe and struggling to find a product to sell. thanks for your help brother.

    1. Hi Hubert,

      You are very welcome, happy to help! I am glad to hear my post has been valuable to you. Let me know if you have any other questions and good luck on your Amazon selling journey!

Leave a Reply

Your email address will not be published.