Most Profitable Product Categories on Amazon

As one of the most popular online marketplaces available, Amazon offers sellers the opportunity to reach a wide and diverse audience. For customers, part of the appeal is the millions of products available for sale every day — across 36 Amazon product categories. From personal care items to the latest tech gadgets, customers are confident Amazon has what they need. Within these categories we select the Most Profitable product catagories on Amazon that new seller can consider while start their new E-commerce journey.

For sellers — especially if you’re new — this wide assortment of products makes it challenging to get established since there’s so much competition. Plus, it’s overwhelming to search through millions of products to find “the right ones” to sell. As a seller, you have to know which Amazon product categories generate the most sales.

Fortunately, Amazon helps you navigate the multiple options available. It regularly shares a list of the most profitable product categories in the marketplace.

To set you on the road to success, here are the top five profitable categories on Amazon and the best products to sell within each one.

Now let’s look at the most profitable product categories and the best-selling products within them.

  1. Electronics

Wherever customers go — from home to the office and everywhere in between — they’re surrounded by tech. The Internet of Things (IoT) is growing every day and new gadgets — for all ages — are released all the time. There are millions of products within the electronics category, so to help customers make buying decisions, Amazon shares its Best of Prime report every year. The list consists of products that Prime members bought the most of in a given year.

  1. Books

When Amazon first launched, it was one of the first online book retailers. Over the years, it’s evolved to become more digitally focused. Now, it offers digital options — like Kindle products.

Some of the best-selling books in this Amazon product category are epic adventure novels — many of which have been turned into blockbuster films. For example, popular books include The Hunger Games, The Hobbit, and Divergent. These books have four or more stars and thousands of reviews.

On Amazon’s best-sellers list, the books that sell the most copies are children’s books, literature and fiction, and self-help.

  1. Clothing and Accessories

Amazon has grown and evolved to become an online shopping destination for clothing and fashion accessories. Based on a 2018 survey by Morgan Stanley, some of the most popular items sold in the Clothing, Shoes & Jewelry category include:

There are a few fashion brands like Allen Solly, Jockey, and Under Armour on Amazon, but customers are mostly shopping for low-cost — but stylish — options. Specifically, Amazon’s current best-selling products in this category are footwear and activewear:

  1. Health, Medical supplies and Equipment

Health is wealth as the old saying goes. In the Amazon industry, such a line is held as truth both in a figurative and literal standpoint, especially the latter. As an Amazon category, Health, Household & Baby Care is among the top 10 categories in terms of profit margin. According to the report, it provides entrepreneurs of Amazon with an average profit margin of 20%.

  1. Toys & Games

The Toys and Games product category is a very lucrative and profitable category for sellers. With an enormous marketplace that is constantly growing with toys from every blockbuster cartoon or movie, you’re sure to make big bucks. A plus for this category is that these toys and games are usually lightweight and cheap to pick up.