While there is a large number of shoppers in these categories, that could also mean there are a large number of sellers. 

It is no secret that selling on Amazon has become increasingly popular over the years, increasing the competition for existing sellers.

According to our 2023 State of the Seller Survey, these are the top 10 categories sellers have products listed in:

Here are some additional issues with selling in a popular product category:

• 39% of sellers worry that rising competition will lower prices. When a niche or product faces more competition, it becomes tougher to compete based on price.
• Highly saturated categories lead to increased advertising expenses. This involves higher CPC (cost per click) rates and elevated advertising costs that offer reduced returns.

On the flip side, here are the least popular Amazon categories, according to our 2023 State of the Amazon Seller Survey.

Remember that these categories might still be profitable because:

• Profitability isn’t solely tied to the popularity of the primary category; it hinges on factors like your chosen niche, product competitiveness, pricing, cost of goods, and various other elements.
• Less competition can mean more chances for success. In 2023, 39% of Amazon shoppers purchased from the electronics category, yet only 16% of sellers listed electronics.
• Explore research opportunities within these categories. If you’re open to different product categories and aiming to stand out, consider exploring less obvious category options to differentiate yourself.

Interestingly, one of the least popular categories (Handmade, 6% of sellers) has the highest number of profitable sellers (above a 20% margin). In the most popular category (Home & Kitchen), 14% of sellers are unprofitable or don’t know their profit margin. 

Picking one category over another will not guarantee that your product will be profitable, but there is opportunity in less popular categories. Less popular categories will also have less competition.

Your ability to sell in a less popular market depends on your ability to: 

• Conduct proper product research
• Source quality products
• Negotiate pricing
• Run profitable PPC campaigns
• Create an optimized listing.

Each person pursues distinct goals regarding growing your business or selling on Amazon. This post doesn’t aim to dictate the category you should choose for selling; instead, it encourages thinking creatively to enhance your success on Amazon.

Rely on data-driven decisions rather than assumptions about what might sell effectively.

Certainly! Conducting thorough product research before starting a business on Amazon is necessary for various reasons. It helps identify profitable niches, understand customer needs, analyze competition, and evaluate market trends. You can make informed decisions about your offerings by researching product profitability and adhering to Amazon’s policies. 

Understanding the financial aspects and potential risks associated with your chosen products also allows you to develop effective business strategies. Product research is crucial for optimizing product listings, staying ahead of market trends, and increasing your chances of building a successful and sustainable business on the Amazon platform.

To find a popular category to sell in on Amazon, start by analyzing Best Sellers lists, using Amazon’s product research tools, and examining top brands on the platform. Explore subcategories for niche markets with less competition, consider seasonal trends, and leverage third-party tools for deeper insights. 

Social media platforms can provide clues about emerging trends, and analyzing customer reviews helps understand consumer preferences. Evaluate competition in potential categories, striking a balance between demand and competitiveness. 

Additionally, consider your interests and expertise when choosing a category. Continuous research and staying informed about evolving customer preferences are key to long-term success on the platform. Always adhere to Amazon’s policies when selecting and selling products.

To find lower-competition products in a popular category on Amazon, delve into subcategories to identify niche markets with less saturation. Utilize Amazon’s Best Sellers Rank (BSR) to pinpoint products with lower BSR, indicating higher sales than competitors. 

Explore New Releases and Movers & Shakers sections for emerging products with potential. Refine searches using filters, examine keywords, and focus on long-tail searches to identify products catering to specific customer needs. Analyze top competitors’ listings for gaps or areas of differentiation and leverage third-party tools for in-depth market analysis. 

Stay informed about industry trends and seasonal variations, considering private labeling or product bundling to reduce direct competition. Evaluating existing product reviews helps identify areas for improvement and potential niches within the popular category. By employing these strategies, you can discover and capitalize on opportunities with lower competition.

The category choice on Amazon is crucial as it impacts various aspects of your business. Highly competitive categories may pose challenges for new sellers, while moderate or lower competition can offer opportunities for visibility. 

Understanding the target audience and aligning with their preferences is essential for effective marketing and engagement. Consider fulfillment requirements, regulations, and potential profitability when selecting a category. Evaluate the potential for brand and product differentiation, accounting for seasonality and personal interests. 

Advertising costs can vary, and assessing the chosen category’s long-term viability and growth potential is important. Ultimately, thorough research and alignment with business goals are key in making an informed decision about the category in which to sell on Amazon.

Certainly! Various third-party tools and services can simplify product research for Amazon sellers who need to be data experts. Tools like Jungle Scout, Helium 10, and ZonGuru offer features such as product and market analysis, keyword research, and competitor insights. 

MerchantWords identifies popular search terms, while Keepa provides historical data on pricing and sales ranks. These tools help sellers make informed decisions about product selection, competition, and market trends. It’s essential for sellers to choose tools based on their specific needs and to complement the data with their own market knowledge, product quality, and effective marketing strategies for success on Amazon.

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