Amazon is a massive player in the U.S. ecommerce market. In 2020 around 65% of the American population had visited one of Amazon’s websites at least once per month. It also received more than 213 million unique American visitors each month.And it’s only getting bigger.Pssst…If you want to find out how Ampry can help you grow your own ecommerce platform, schedule a free strategy call today. A third-party seller is an independent seller “who offer[s] a variety of new, used, and refurbished items.” In exchange for this, Amazon takes a percentage of each sale.In 2019 more than half (about 53%) of all sales made on Amazon were transactions made between consumers and third-party sellers on Amazon Marketplace and Amazon Seller Central. Although Amazon takes a percentage of each sale processed on Amazon Marketplace, most third parties who sell on Amazon are profitable. In 2020, 86% of third-party sellers on Amazon made a profit, and 92% continued selling on the platform. Third-party sellers could make anything between $26,000 and $810,000 of profits each year. In 2021 60,000 Amazon sellers made more than $1 million in sales. (For more, take a look at this Amazon SEO seller’s guide.)Amazon seller fees depend on the product category and value. In addition to this, selling products on Amazon is subject to sales tax, and you will also need to add the shipping cost.If you prefer to sell your own products, you could consider using Amazon handmade to sell craft or handmade items. You can also sell private label products while protecting your branded items.An attractive option to becoming an Amazon seller is that you don’t necessarily need to have all the stock on hand. You can start selling on Amazon from your home study – much like Jeff Bezos did in 1995.The rise in ecommerce fulfillment services centers means you can sell the products while leaving all the warehousing, storing, picking, packing, and after-sales customer service (like returns, exchanges, and refunds) up to them. Amazon FBA is one such service. Amazon FBA (Fulfilled By Amazon) handles all the logistics of getting your products to your customers and taking care of them afterward with excellent customer service. This means you can focus more on selling – or sourcing additional products.To become a successful and professional Amazon seller, you need to do some product research before deciding what to sell. Your product research could include looking at various top-selling categories, current best-selling Amazon products, and items with plenty of 5-star reviews. You could even consider products on product recommendation lists like this one.The list of the most frequently bought products on Amazon is a good starting point when looking for the best products to sell on Amazon.
- Electronics - 44%.
- Clothing, shoes, and jewelry - 43%.
- Home and kitchen - 39%.
- Beauty and personal care - 36%.
- Books - 33%.
- Cell phones and accessories - 28%.
- Movies and TV - 25%.
- Pet supplies - 20%.
- Sports and outdoors - 17%.
- Grocery and gourmet food - 15%.
- Automotive parts and accessories - 13%.
- Baby products - 9%.
Books
Around 650 million print books are sold in the United States alone. Although digital books are increasing in popularity, print books are still the most preferred option for consumers in the United States. In fact, more than 60 percent of American adults have read a book in print in the past year.Although it isn’t the product category with the most frequently bought products, books sell well on Amazon. It shouldn’t be surprising, considering that back in 1995 Amazon started out as an online bookstore. Amazon sells more books than any other single retail outlet in history. It is believed that Amazon holds at least 50 percent of the print book market in the United States and at least “three quarters of publishers’ ebook sales,” according to analyst Benedict Evans.
Electronics
Electronics is the best-selling category on Amazon. More than that, just over half (50.2%) of all computers and consumer electronics sold in ecommerce stores throughout the United States are sold through Amazon. Computers and consumer electronics were expected to make up more than a quarter (26.6%) of Amazon’s total U.S. ecommerce sales in 2021.This turned out to be accurate as nearly one quarter of all consumer electronics and appliances purchased in the second quarter of 2021 were bought on Amazon. The platform sold more electronics and appliances than Walmart, Best Buy, and Apple.That means Amazon is a great place to sell electronics like Airpods pro or the Apple Watch S.E. On the other hand, competition may be fierce, and you will need to do your research to either find a gap in the market or offer competitive prices.
Toys and Games
It was expected that Amazon would receive 46% of the U.S. ecommerce sales in the categories of “toys” and “hobbies” in 2021. That in itself is considerable. In the same year, the U.S. toy market was around $38.2 billion – a 14.2% increase from the year before.The popularity of action figures and accessories increased relatively substantially, with a growth of 23.7% between 2020 and 2021. Explorative and Other Toys saw a growth of 55%. Plush toys remained a favorite with an increase of 29.8%. Building sets and games or puzzles grew by 16.4% and 14.4%, respectively. Interestingly, the sale of youth electronics went down by 0.4% in that period.
Home and Kitchen Items
Home and kitchen items is the category on Amazon with the most products listed. 45% of all products listed on the Amazon platform fall under this category.Home appliances are generally divided into two main sectors: major domestic appliances and small domestic appliances. Major domestic appliances include large machines that you use in your homes like fridges, freezers, dryers, washing machines, and stoves.Small domestic appliances include kettles, coffee makers, instant pots, toasters, and other smaller small products you use in your home.The rise in smart home technology means an increased demand for smart home appliances. These smart appliances include home entertainment products, smart speakers, smart TVs, home security and lighting products.Other smart home products include refrigerators, air conditioners, and washing machines. The demand for smart vacuum robots is also predicted to grow.
Lawn and Garden Products
The business-to-consumer ecommerce market in the home and garden industry is expected to grow by almost $102 billion between 2020 and 2024. In 2020 orders for home and garden products increased by 55%.Craftsman and Black & Decker are the top two garden and lawn brands in the United States. Leaf blowers, vacuums, hedge trimmers, walk-behind mowers, and fertilizer spreaders are all popular with these consumers.There is a demand for landscaping products like plants, water fountains, and gazebos. This, in turn, increases the demand for lawn and gardening consumables like fertilizers, pesticides, mulch, growing media, and seeds. Other gardening consumables include ground coverings and planting materials. These are likely to see a growth in sales as more and more people explore hardscaping and various outdoor specialties.The hardscaping industry especially is predicted to see significant growth. This means that there is likely to be an increased demand for products like stamped concrete plank pavers or paving blocks made of porcelain and natural stone. Also, the increasing popularity of outdoor kitchens is likely to further increase the demand for hardscaping products.
Clothing, Shoes, & Jewelry
Apparel and accessories is the second-largest sales-generating category for Amazon in the U.S. market. This category made up 16% of the total U.S. ecommerce sales for Amazon in 2021.Fashion retail sales are slowly moving online. The ecommerce fashion retail industry has seen steady growth since 2003. In 2020 nearly a third of all fashion retail sales in the United States were conducted online. What is more, nearly 60% of consumers visit store websites like Amazon to research clothing products.The ecommerce revenue for sales of fashion, footwear, and accessories is estimated to increase by just over $40 billion between 2020 and 2024. Another estimate is that the industry will grow around $150 billion between 2020 and 2025. Either way, the industry is booming, and you could do well selling this type of product on Amazon.
Groceries
While still a relatively small segment, Amazon shoppers are now starting to purchase groceries on the platform. Amazon products in this category were predicted to contribute 3.7% to the company’s sales in 2021. More than that, ecommerce grocery sales, in general, are predicted to grow by 21% in 2022.Millennials shop for groceries online as often as they do in-store. Nearly half (43%) shop for most of their groceries online.It is predicted that ecommerce sales will be responsible for 20% of U.S. grocery sales by 2026. What is more, people are more likely to eat at home (instead of at restaurants, for example) than they did before the pandemic started.This could be because of increased prices for meals you would eat in restaurants or because many consumers practiced their cooking skills while spending more time at home.Either way, consumers are spending more on groceries than they did before the pandemic started. That means the grocery category is a great place to get into selling products on Amazon.Whether you will be selling your own products on Amazon handmade, sell private label products, or want to become a third party seller on Amazon Seller Central, selling products on Amazon can be a lucrative stream of income.As you consider the best products to sell on Amazon, keep in mind that you can use Amazon FBA or a different ecommerce fulfillment services center to take care of the heavy lifting of selling on the platform. If you prefer to sell on your own ecommerce platform, discover how Ampry can help.