How to Choose Categories to Sell Products on Amazon
There are many different product categories that can be successful on Amazon, and the best category for a seller will depend on the specific product they offer and their target market. Here are some factors to consider when choosing a product category on Amazon:
Demand: When choosing a product category on Amazon, it’s important to consider the demand for the products you plan to sell. You can research demand for different product categories using tools like the Amazon Best Seller List and the Amazon Keyword Tool. These tools can help you see what products are currently popular on the platform and give you an idea of the level of demand in different categories.
Competition: The level of competition in a product category can be an important factor to consider when choosing which products to sell on Amazon. If the category is highly competitive, it can be harder to stand out and increase sales. On the other hand, a less competitive category can present more opportunities for new sellers. You can research the competition in a particular category by looking at the number of sellers in the category and the number of product reviews.
Profit margins: It’s important to consider the profit margins for the products you’re considering selling. Some categories may have higher profit margins, which can make them more attractive to sellers. However, it’s also important to balance profit margins with demand and competition for your products. You can research profit margins for different product categories by looking at the prices of similar products and estimating the cost of sourcing and fulfilling your products.
Niche opportunities: When choosing a product category on Amazon, it’s a good idea to consider whether there are any niche opportunities within the category. For example, if you sell clothing, you might consider focusing on a specific subcategory, such as sustainable fashion or plus-size clothing. Niche opportunities can help you differentiate your products and target a specific audience, which can be a powerful way to increase sales.
Personal interests: Finally, it’s always a good idea to consider your own interests and expertise when choosing a product category. If you’re passionate about a particular product category, it can be easier to stay motivated and focused on your work. Additionally, having expertise or knowledge in a specific product category can be helpful in understanding the market and identifying opportunities for success.
Seasonality: Some product categories have seasonality that can impact demand and sales. For example, products related to holiday gift giving may be in higher demand during the holiday season, while products related to outdoor activities may be in higher demand during the summer months. It’s a good idea to consider whether the product category you’re considering has any seasonality that could impact your sales.
Fulfillment options: Amazon offers a variety of fulfillment options for sellers, including Fulfillment by Amazon (FBA) and self-fulfillment. It’s important to consider which fulfillment option is best for your business and the products you sell. For example, self-fulfillment may be more practical if you sell large or heavy items, while Fulfillment by Amazon may be more suitable for smaller or lighter items.
Shipping costs: Shipping costs can be a significant factor for sellers, especially if you sell heavy or bulky items. It’s a good idea to research the shipping costs of the products you’re considering so that you can offer competitive prices and still make a profit.
Restrictions: Some product categories may have specific restrictions or limitations on Amazon, such as age limits or documentation requirements. It’s important to research any potential restrictions or limitations that may apply to the products you plan to sell to ensure you’re compliant with Amazon’s policies.
By considering these factors, you can choose a product category that best suits your business and has the potential to be successful on Amazon.
