In 2020, Amazon’s annual revenue was over $386.1billion, with a third of Americans holding a Prime account. Amazon accounts for around 45 percent of the US e-commerce market share (2019) and has shown continuous growth. In 2018, 200 000 sellers had sales of over $100 000, with this figure rising to 225 000 in 2019.
It’s evident that Amazon has proven to be a world of opportunity, but this is only true if you sell the right product.
When running an Amazon FBA business, deciding what to sell could be the difference between success and failure. Discover the best products to sell on Amazon and handy tips and advice to help your FBA business succeed.
The Best Products to Sell on Amazon FBA
For any e-commerce seller, the Amazon Marketplace Best Sellers List offers valuable data to help you make the best choice. The list features all bestselling FBA categories, showing the top-selling products within each.
There are, however, specific categories that consistently appear on the bestsellers list. This can be a great starting point when deciding what kind of product to sell.
Examples of commonly featured categories include:
- Pet Supplies
- Sports and Outdoors
- Gadgets and accessories
- Clothing, footwear, and accessories
The pet supplies industry is worth an estimated $99 billion in the US alone, with products for cats and dogs stealing most of the limelight. During the COVID-19 outbreak, pet ownership increased, helping to grow the market further.
Bestselling products within the Pet Supplies category on Amazon include collars, leashes, and pet food. This is a highly competitive area, but choosing a niche could help you capitalize on this growing industry. You could decide to target pet supplies for less popular animals, such as Fish and Aquatic Pets. You could go even more granular and choose a section of that category, such as food, aquariums, or cleaning supplies.
With a new baby at home, anything to make life a little easier will sell well. Selling baby products through Amazon FBA is convenient for new families and can help them save costs.
You could offer baby products in bulk or at discounted prices with quick delivery for added convenience. Bestselling products within the baby category include nappies, wipes, and baby care products such as lotions, creams, and ointments.
Sports and Outdoor
Products such as weights, water bottles, and yoga mats consistently perform well in the Sports and Outdoor categories. This is a growing industry with more focus on health and wellness. Bear in mind that seasonality could play a role within this category. Try to choose products that will be purchased all year round and supplement your stock with seasonable products, such as outdoor games in the summer months.
Books have been Amazon’s top-selling product since the get-go, making them the world’s largest book retailer, and they remain one of the most reliable revenue streams for Amazon FBA sellers.
Gadgets and Electronics
While Walmart and Best Buy have to dock electronics prices to compete with Amazon, the Amazon marketplace offers unparalleled diversity in this category.
Clothing, Footwear, and Accessories
Apparel is one of the top most purchased categories. Remember that certain clothing subcategories do better than others, like intimates and exercise apparel.
In addition to these tried-and-true categories, the following types of goods have also been on the rise in 2020 and 2021:
- Home and kitchen goods
- Recreation equipment
- Toys, games, and video games
- Personal care and cosmetics
Top Products: Why They Make The Cut
Back in the days of department stores, the experience a customer had with a product firsthand played a key role in persuading them to make a purchase—fit, user experience, and even their relationship with an associate could all make the difference between a conversion and a forfeited sale.
The world of e-commerce—particularly Amazon—is very different. These days, consumer habits are governed by the following factors:
#1 Price Points
To stay competitive as an FBA seller in any category, you’ll need to keep your prices on par with your peers—or have a very good reason not to. On the whole, the best products on Amazon fall in the $10 to $50 range.
There are some categories where you may get away with (or even gain leverage by) increasing your prices, like name-brand clothing and accessories. This is because:
- Apparel is a gated category, which means you’ll have to be cleared by Amazon to sell this type of product. To do so, you’ll need demonstrable history as a reliable, lucrative seller in another department.
- The relative restrictiveness in this category means that your competition pool will be considerably more limited, and you may be able to offer garments at a higher price point.
However, there will always be trade-offs. As a fashion seller, for instance, you’ll need to factor in the inevitable avalanche of returns that may occur with this category (at least until the technology for digital fitting rooms is developed).
#2 Ease of Shipping
Amazon has set a new precedent for businesses everywhere, which means the speed of shipping and ease of returns are now non-negotiable, with many users abandoning a purchase if the shipping cost runs too high or if making a return is too much of a headache.
#3 Reliability and Reviews
Finally, you’ll need to establish a reputation of quality and reliability as an FBA seller. From the B2B side, this means working with a supplier who can respond to surges in demand with agility without compromising on quality.
From a customer-facing perspective, your reputation as an Amazon seller will be rewarded with positive customer feedback, which ultimately enhances the customer service experience. Both the quality of product and delivery experience will factor into your customer reviews, proving a deciding factor in your Amazon BSR and your appeal to users.
How to Pick Products to Sell on Amazon
A good idea of what category you want to sell in helps narrow down your product choice, but how do you choose a specific product?
Don’t Try to Compete with Amazon
Amazon offers its own products in some of the popular categories. They will be listed above all other product listings, and if part of the “Basics” range, they will also likely be cheaper. Don’t try to compete with Amazon on their own platform.
Pick a Niche
Popular categories face higher levels of competition. With more products and more sellers to compete with, it can be difficult to make an impact. To give yourself more chance of success, choose a niche. This is just a highly specific segment of the market you’re targeting. For example, you may not target pet food generally, but fish food in particular. There will likely be less competition in these areas, so you have more chance of success.
Check Google Trends
Google Trends can be a handy tool for FBA product research. It displays search information on which topics are increasing in interest and those decreasing.
If a product already has a high search volume and high interest, competition will likely be very high. If interest is low, competition will also be low; however, purchases are less likely. The trick is identifying products for which search interest is just beginning to rise. The competition will still be relatively low, but demand will increase.
Interest in products peaks and dwindles based on life events, industry changes, trends, world events, regulation changes, and more. Make sure you always have one finger on the pulse to ensure you can be reactive to these changes.
Don’t be afraid to add or remove products from your FBA range. If you aren’t reactive, your business and sales may begin to stagnate, and you could be hit with unwanted FBA fees.
Listen to Data
Data can be one of the most important tools at your disposal when selecting FBA products. Being data-led helps you to action the findings of your research.
Never sell products just because you like them. Analyze the demand, competition level, and product performance on Amazon Marketplace before choosing. You can also use data to track seasonality trends to determine which products should be added or removed from your product range and when.
Amazon customers generally come to the site with a specific product idea. It’s not a platform many people use to browse casually. Due to this, practical products that fulfill a need tend to be more successful. Think practically and ensure your product listings are highly descriptive of their purpose.
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