Editor’s Note: Originally published on May 31, 2022, updated on Apr. 4, 2023.
Trying to find the best product category to sell on Amazon, but not sure where to start? Lend us your ear and we’ll tell you what industry experts have to say. Get your foot in the door with our list of this year’s top selling product categories on Amazon.
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Getting started with Amazon isn’t easy at the best of times. But 2023 comes with a whole new set of challenges. If you’re trying to find the best product category to sell on Amazon, let’s look at this year’s top selling product categories on Amazon and highlight this year’s emerging trends.
Growth Forecasts for Product Categories on Amazon in 2023
According to Insider Intelligence/ eMarketer, two categories will see the strongest sales growth this year and the next: Health & Personal Care and Food & Beverage. Both categories should see a 30-35% jump in sales share this year as well as the next, if the forecast is correct.
But computer and consumer electronics will continue to be the best product categories overall in 2023. Statista estimates that Electronics account for just over 28% of sales, and will continue to do so until 2027. However, eMarketer’s report points to the possibility of an over 49% rise in sales share in 2023.
Likewise, Statista expected the fashion category to grow by 1% by 2027. But in a more recent report, it claims that Apparel is Amazon’s fastest growing category, with a compound annual growth rate of 12.4%. Well, eMarketer expects a much larger growth in sales share of about 32%.
Finally, Statista’s older forecast was that Home and DIY sales will continue to take up only a tenth of sales until 2027. But eMarketer paints a different picture. Items like office equipment, supplies, furniture, and furnishings could see a sales share rise of over 49% this year and the next.
Wait, there’s more! JungleScout’s Consumer Trends Report shows that of the 1,000 buyers surveyed, it’s GenZ-ers and Millennials that shop most often on Amazon nowadays. And they tend to buy more groceries, cleaning supplies, and dietary supplements, and less of the other categories mentioned above.
What’s more, over a third of respondents don’t buy any Toys & Games or Arts & Crafts on Amazon. Also, a considerable number of people buy more of every category than they did last year. But they’re no match for the ones who buy less in 2023. This points to a possible decline in sales and revenue.
It also points to a shift away from last year’s “homebody economy”, as Business Insider called it. Hobbies, books, sports, and gardening are no longer a priority. Post-pandemic lifestyle changes may very well be making room for more immediate needs like food, health, attire, electronics, and furniture.
Top 7 Product Categories to Sell on Amazon in 2023
So, what do we think? That they’re all partly right. To cope with rising prices, higher mortgage rates, and the possibility of a recession, people are reassessing their options. They’re ditching the home office, the commute, or their ‘little luxuries’. They’re moving, switching jobs, and refinancing.
The focus is shifting away from self-cultivation and back to the practical. So, there’s bound to be some changes in terms of Amazon sales. But the overall top selling product categories on Amazon will probably continue to be:
- Food & Beverage.
- Office Equipment.
Why so? For one thing, it’s convenient. Unlike Musical Instruments, Industrial & Scientific, and Automotive Parts & Accessories, these categories generally require less experience and expertise. Also, sellers in these categories are more likely to be able to fulfill their own orders and keep costs down.
There’s also the issue of declining spending power. Impulse buys are giving way to deals, coupons, and DIY alternatives. Also, Prime memberships in the USA are plateauing due to what eMarketer calls “subscription fatigue”. In fact, CIRP reports a possible decline in members due to market saturation.
How to Find the Best Product Category to Sell on Amazon
Choosing the best product category to sell on Amazon is a long and error-prone process. It’s not just about finding today’s top selling product categories on Amazon. It’s also about things like competition, demand, and the quality of the research you undertake. Here are 10 pointers for your analysis:
- What products are in high demand in 2023? Look at Google trends and compare consumer trend reports from reliable sources to get an overall picture. Try a good Amazon keyword scouting tool for high-demand phrases with limited uptake. This should narrow down the list
- What kind of competition are you looking at? Check sections like “customers also bought/viewed”, “frequently bought together”, “compare with similar items”, and “consider a similar item”. Scroll to Sponsored product carousels that say “you might also like” and “4 stars and above”. Notice patterns and gauge the competition.
- Is it already listed on Amazon? Check the UPC barcode and if you need GTIN-12/13 barcodes. If not, look for similar and substitute products on Amazon. Use a tool like Sellery to compare the market, estimate profits, and gauge your competition for these products.
- Is it popular on Amazon? Check sales rank for this item and similar ones. The smaller the better, but it varies from one category to the next. Note that it’s based on buyer orders, not units sold. Aim for 3-4 figure sales ranks to avoid intense competition and low margins.
- Is it a financially viable product? As a new seller, you may want to focus on items that retail for over $25; at least until you build up your sales volume. But bear in mind that ‘landed costs’ are high and Amazon fees are growing, as the latest FBA fee changes will show.
- Is the item likely to sustain damage in transit? Durability, weight, and size may affect your fulfillment options as well as your shipping costs. Note that Amazon FBA has very strict packaging and prep requirements like passing the 3-foot drop test up to 5 times.
- Is it a seasonal product? Seasonality isn’t necessarily a drawback, but it can affect Google trends and other reports. Toys, gifts, and jewelry sales might get a boost in Q4, while books and stationery can fly off the shelves in Q3.
- Are product reviews genuine and resolvable? Some product categories (e.g., beauty, fashion) are more prone to review manipulation. It’s important to check that buyer reviews seem genuine, reasonable, and appeasable.
- Are you in it for the long-haul? Ask yourself if, once your offer goes live, you are prepared to consider boosting it. You may need to promote it with PPC campaigns, optimize your listing, negotiate supplier prices, and work on product USPs and perceived values constantly.
- Is there any bias in your assessments? Check that you’re not overestimating, underestimating, or putting too much effort into your choice of product category. This is bound to happen if you’ve used, worked with, or coveted these types of products before.
And so it is that we conclude today’s blog post. But not before reminding you to only check trusted sources for tips on the best product categories on Amazon in 2023. As for us, we’re excited to help you grow your business once you’ve listed products from these top selling product categories on Amazon. With software tools like BuyBoxBuddy, all it takes to start selling is a PC and 10 minutes of your time.
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.