Amazon is the world’s largest retailer, and it has become because of its simplicity and ease of use. It is usually just a matter of three steps. List your product on amazon, update your business information on amazon and then take from your sales proceeds minus shipping and fees. Due to this simple model of e-commerce selling, many sellers have tried to increase their business by listing their products on amazon.
It worked for a while, but competition increased as people became more aware. One silver lining that came out of this was that now you could exactly know what the consumer is demanding and make or source them to sell it at competitive prices.
To find more information about the importance of branding, you should try Zonbase vs Jungle Scout for Amazon sales
10 Profitable Categories Of Amazon
You are no longer defined by your geographic boundary and free to use amazon services to reach the various corners of the globe. Amazon also promotes certain events to support local small business owners, and you could use that as a launchpad in the e-commerce world. Amazon also has various tools to help you track your expenses, commissions payable, and others, but it can be a little overwhelming for someone not so tech-savvy.
We have The FBA Calculator here, a powerful calculator to help you with the fulfillment of amazon items. You can freely use this calculator to know about the commission payable, expenses, and other necessary data useful for selling on amazon very easily.
Here are some profitable categories of items that you can consider selling:
1. Video Games:
The profit margin is as high as 28 percent in this category of computer entertainment. It is a highly profitable business but with its own set of problems. Inventory management issues are the biggest thing that you have to look out for. Also, keep looking out for the latest trends in the computer gaming category to maximize your profits.
2. Books:
Another highly profitable category with a profit percentage as high as 25 is a diminishing category. Books have become a niche segment, and with digital books becoming the new norm, this category of products is slowly becoming obsolete. But it has not totally fallen out of taste yet. Maximize your opportunities by selling the most popular books and comics.
3. Mobile Accessories:
A growing industry. You could easily source various mobile accessories or manufacture them to sell them with a profit margin as high as 21 percent. People often buy mobile cases and covers, and these things are always high in demand.
4. Household Items:
Common household items like broomsticks, washcloths, tablecloths, and other such related items may sound so trivial but are a highly profitable category of items. Profit margins are as high as 22 percent over here.
5. Automotive Accessories:
This category is popular among auto enthusiasts and others. With profit margins up to 21 percent, you could easily earn some handsome income. Motor engine oil, do-it-yourself accessories like bobbleheads, car covers, and a lot more.
6. Clothing:
Several brands are trying to grab a piece of this highly lucrative pie. Profit margins are modest at 20 percent.
Read More:- Starting Your Apparel Business On Amazon
However, the real play is in volume. Clothes generally sell in high numbers, and if you can crack the correct blend of price with quality, you may take away a significant market share.
7. Musical Instruments:
This is a niche category and is growing at a steady pace, usually musical instruments cost a lot of money, so this is a slow-moving stock. If you are certain that you can manage the inventory cost and other ancillaries and then go jump right into this segment. Profit margins are generally in the range of 17 to 20 percent over here.
8. Baby Products:
A tough category to crack. Handsome profits are guaranteed here, but the catch is not everybody can manage selling in this category. Baby products need to be handled with utmost care and almost always require a personalized touch to sell. Profit margins are about 21 percent over here.
9. Sports Goods:
With profits as high as 22 percent, it makes sense to sell sports goods. It is a relatively faster moving stock and has a low inventory turnover ratio. What works best over here are brand image and quality. Also, shoes, gym dumbbells, sportswear, and more are the best-sellers in this category.
10. Luggage and Travel Gear:
Binoculars, travel cases, action cameras, outdoor tents, and many more are among the best sellers in this category. Profits are usually in the range of 17 to 22 percent, but inventory turnover is quite high over here. This is something that you will have to manage. Otherwise, it may spiral out of control.
Fulfillment by Amazon (FBA) is popular for nearly every product category, but Fulfilment by Merchant (FBM) is more popular among Cell Phones & Accessories, Computers, Apps & other similar items.