Whether you are a seasoned Amazon seller or a determined beginner, you must have contemplated at some point in time the following question: Which products should I sell on Amazon?
A couple of blog articles attempted to answer this question, each giving their own estimate based on obscure data. How about we take a different angle for a change?
The information I am sharing with you here is 100% data driven and is available in our deals catalog if you care to look. The deals catalog references every profitable item that you can easily flip on Amazon for profit. Check it out, I am sure you will find something of interest.
Most profitable product categories to sell on Amazon
Every best list relies on well defined metrics. The ones presented in this article make no exception. We consider a given category to be ideal for Amazon FBA if it satisfies one of the following two criteria:
- Easy to source products
- products with a high net margin
Top 5 categories with easy to source products
Each day we scour 30 Amazon categories looking for best selling products to source. For a given sample of 10 000 products, the top 5 categories that return the most results are :
|Category name||Number of products easy to source
|Clothing, Shoes & Jewelry||2000
|Sports & Outdoors||1500
|Industrial & Scientific||1150
|Home & Kitchen||635
|Beauty & Personal Care||600
If you are worried about finding suitable products to sell on Amazon, then the “Clothing, Shoes & Jewelry” category is your best bet. You are much more likely to find a decent item to flip in any given wholesale supplier. I don’t think this comes a shock to any one. Numerous blogs listed this category on their top 5, though never on top and never presenting real data to justify their choice.
Now the third best category may surprise many of you: Industrial and Scientific. Basically that’s anything related to DIY work, raw material, robotic, etc. A very broad category that contains a lot of item more likely to be found in wholesale suppliers. Nobody ever talks about this category, yet it is a goldmine for FBA sellers!
Top 5 categories with the highest net margin
Finding easy to source products is key of course to the FBA business, but equally important is the margin you make flipping these products. In the following figure we order Amazon categories according to the percentage of products with at least 50% net margin (taking into account Amazon fees).
|Category name||Number of products with a net margin over 50%
|Industrial & Scientific||45%
|Health & Household||43%
|Beauty & Personal Care||37%
Again, not what you find on your average FBA blog post… The most profitable category -on average- is the Musical Instrument category. Don’t get overexcited. Products in this category are not easy to source for many reasons. Not many suppliers provide quality material, products are sensitive so you need to pay extra care to shipping, which may reduce your margin, etc.
The second category on that list is more interesting: Automotive. It contains a very high ratio of products with a good margin. These products are also much easier to find than Musical Instrument products. The same goes for the “Industrial & Scientific category” which has the best of both worlds: easy to source and very profitable!
So there you have it! Two lists of the top categories to focus on to boost your profitability on Amazon FBA. In our deals catalog, you can filter products based on categories and easily find your next profitable product to flip.
Stay tuned for more statistics and data-driven blog posts.