Key points:
- Amazon is the leading online retailer in the US, with a market share of over 50% of the eCommerce market
- Top 5 best-selling Amazon products in 2022: Cross-body Purses, Microfiber Sheet Sets, Blue Light Glasses, Handmade Items and Eye Compresses
- Easyship can help you find a reliable shipping solution that simplifies scaling a best-selling Amazon product, while increasing profit and creating a delivery experience customers love
Looking for the best products to sell on Amazon? This article breaks down how to find the right niche, top product categories to sell in to and the best-selling Amazon items in 2022. Find a winning product to start scaling today.
Table of Contents
What Is Amazon’s Unique Selling Point?
Amazon has grown rapidly over the last couple of decades, with over 50% of the entire US eCommerce market, according to Statista analysis. It has achieved this leading market position by focusing on its unique selling point, offering cheap prices, fast delivery and a huge choice of products.
Arguably, by not focusing on site aesthetics and adding endless flashy features, the constant focus on function has driven growth. In the long run, potential future growth will be underpinned by customers demand for products cheaper and faster.
Instead of slowing page loading speeds with superficial features, Amazon has focused on customer led innovation. One key example would be the recommendation system that brings trending products to the customer's attention.
Find Your Niche
An Amazon niche is the particular market your store's products will sell into. This segment of the larger marketplace will have its own particular needs and demand, unique and different from other niches. Finding the niche that is perfect for your store and targeting this specific audience will give you a range of competitive advantages:
- Less competition
- Build brand loyalty
- Increase profit
- Establish yourself as an expert in your area
To find the most profitable niches to start selling into, you will need to find and define target audiences to segment from the general market. Some factors to consider include:
- Product quality. Luxury, custom, handmade, necessity or inferior goods
- Product price level. Premium, mid-market and discount
- Customer psychographics. Interest, lifestyle, values, opinions and personality
- Customer demographics. Age, gender, income, geolocation, education level and occupation
Not every niche you research will be viable for your store, as one that is too narrow will have too small a target market to maintain a constant flow of sales. Finding the right niche market with consistent demand is an essential first step for launching a successful ecommerce business on Amazon Marketplace.
How to Choose Which Product to Sell on Amazon
Good products to sell on Amazon can share a range of similar qualities. Checkout some key factors to look out for below:
Condition
While not the first thing you may think of when evaluating a product, Amazon also sells new, old and handmade products. A product's condition can impact customer demand when compared to competitive products. New items naturally have the highest demand, however homemade or vintage items do have their own particular niches.
Size
When looking at a product's size, it can be more profitable to focus on smaller and lightweight products that are cheaper to ship. There are three key advantages:
- Less expensive to buy
- Lower shipping costs
- Lower fulfillment fees
Price
While sales price will always come second to the potential profit margin of a product, it can be worth analyzing how price elastic demand is for your chosen product. If your chosen product has high price elasticity, then demand can potentially increase significantly more as the price goes down. While low price elasticity would be the opposite, with price not impacting demand as much.
If you find a product with low price elasticity, this can give you the opportunity to increase profit, while demand make decrease only sightly. For highly price elastic products, unfortunately in a competitive market you can end up in a race to the bottom with prices, creating a tight profit margin.
Fulfillment Type
When selling on Amazon Marketplace, there are two main types of fulfillment for your product. You can either use fulfillment by Amazon (FBA), or alternatively fulfillment by merchant (FBM). With FBM, you are completely responsible for warehousing and fulfillment of orders. There are a few key potential benefits:
- Less Amazon costs
- Customization and branding of packages
- Control over inventory and replenishment schedules
- Reduce and manage shipping costs
- Ownership of the customer experience
With FBA, Amazon will store, pick, package, ship and even delivers the ordered product, plus customer service and returns. While this form of automated fulfillment can help you quickly scale, there are a few potential downsides to consider:
- Limited branding available
- Returns can increase due to the Amazon open returns policy
- Ensuring products are prepared correctly to FBA guidelines
- Fulfillment and monthly costs can quickly add up
- Loss of control
While there are benefits and drawbacks to both FBM and FBA, a potentially sustainable strategy for your store can be to implement both types if you are selling a range of products. Using FBA to scale quickly for popular products with high demand and sales volume, while utilizing FBM for expensive product listings.
Top Product Categories
Finding a popular category can be just as important as finding the right profitable product. While there are a huge range of product categories available, unfortunately some are not open to third party sellers. For quick inspiration, checkout this Jungle Scout breakdown of the most popular Amazon categories for third party sellers in 2022:
- Home & Kitchen
- Beauty & Personal Care
- Toys & Games
- Clothing, Shoes & Jewelry
- Health, Household & Baby care
- Sports & Outdoors
- Arts, Crafts & Sewing
- Books
- Kitchen & Dining
- Baby
While these categories are popular with sellers, there is the risk of selling into a market that is over saturated with competition. It can be useful to compare them to the top 20 product categories with the highest average profit margin:
- Handmade
- CD & Vinyl
- Apps & Games
- Industrial & Scientific
- Luggage & Travel Gear
- Grocery & Gourmet food
- Video Games
- Arts, Crafts & Sewing
- Pet Supplies
- Musical Instruments
- Beauty & Personal Care products
- Baby
- Sports & Outdoors
- Automotive parts & Accessories
- Garden & Outdoor
- Appliances
- Toys & Games
- Tools & Home Improvement
- Clothing, Shoes & Jewelry
- Books
These broad categories may have the highest average profit margins for sellers, however every category will have smaller profitable niche markets within it. At the same time, there will also be a range of unprofitable sub categories. Key reasons to avoid a particular sub category can include:
- High competition
- Race to the bottom price wars
- Competing directly with Amazon
- Increasing pay-per-click costs
Best Products to Sell on Amazon
As the leading eCommerce marketplace in the United States, customers can find an almost endless range of products on the Amazon site. To help you find a winning product idea, we have broken down the top-selling products for 2022:
- Cross-body Purses
- Microfiber Sheet Sets
- Blue Light Glasses
- Handmade Items
- Eye Compresses
- Car Covers
- Face Masks
- Fitness Items
- Hair Care Products
- Water Bottles
- Games and Puzzles
- Gaming Headsets
- K-Pop Products
- Yoga Pants
- Cell Phone Accessories
- Home Security Cameras
- Pet Supplies
- Yoga Mats
- Books
- Kitchen Accessories
While this list can help you understand product trends in 2022, to pinpoint current popular items a great free resource is the Amazon Best Sellers page. This list shared by Amazon breaks down bestsellers in a range of international marketplaces, from the USA, to UK, Germany and Canada.
Updated hourly, these lists showcase top-selling products across the whole site and are a top free product research tool. You can dive into the top products in any department and from there into any relevant sub category that you want to investigate. While knowing which products are popular and paying attention to trends is important, there are some potential drawbacks to selling into these niche markets:
- Products can be very competitive as this resource is available to everyone
- You could start selling into a market which is past its peak demand
- Top-selling products may have the lowest profit margins
Product Research Tools
Finding a tool that helps you find the right winning products for your store, can help you gain a competitive advantage over other sellers in your niche. While not every tool does the same thing, every seller will have their own unique needs. Checkout his quick breakdown of some top tools to help you discover the best products to sell on Amazon:
- Helium 10. Find trending products, analyze competitors, keyword research and optimize listings
- SellerApp. Find products to sell on Amazon by analyzing data from reliable sources
- AMZScout. Get a potential product score, plus various levels of competitor analysis through a web app and Chrome extension
- IO Scout. Breakdown detailed stats covering product listings, estimated sales and seller details
- ZonGuru. All-in-one tool that helps you explore top-selling products, possible market gaps and find niches.
Product research tools can help you supercharge your product selection process. With a wide range of data to explore, here are some key questions to ask:
- What are the potential monthly sales?
- How many other sellers are offering this product?
- What are the average reviews, sales history and price?
- Is demand increasing, or is it trending down?
- What kind of margin can you make?
Create a Delivery Experience Customers Love With Easyship
Are you looking for products to sell on Amazon? From car covers to yoga mats, this article breaks down the best products to sell on Amazon, plus explore the most profitable categories of 2022. Use Easyship to fulfill your own order and start increasing margins while creating a delivery experience customers love.
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