5 Most Profitable Amazon Product Categories in 2020

profitable amazon categories

Amazon has 310 million active users worldwide. That’s quite a number.

If there’s one promising virtual-land that offers such exposure for your products, it’s Amazon.

However, a lot of factors come into play when your biggest priority is profitability.

Higher profit is always backed by a huge demand for a specific product.

Keep in mind that there’s already hundreds of thousands of competitors that may have already established themselves as the go-to for a lot of loyal customers.

That being said, here are the top 5 profitable Amazon categories in 2020.

Electronics

Around 60% of Google searches were made using a smart device last year.

The rapid advancement in technology has resulted in companies releasing new tech products almost every month.

What makes the Electronics category even more profitable is Amazon only charges an 8% commission, compared to the standard 15%.

This category includes everything from accessories and cables to audio/video devices and even vehicle electronics.

Books

It’s almost ironic to follow the Electronics category with something as primitive as books.

Books were the reason Amazon was founded in the first place and they’re not going away any time soon..

A great way of making profit on Books is waiting for Books sales especially at libraries. Invest in a number of popular books and list them on Amazon for almost double the amount.

Toys and Games

Whether it’s educational toys or Disney/Marvel-franchised games, this category is busy all year.

You can time your listing perfectly with the release of a new or upcoming kids movie for some seasonal boosts on your revenue.

Spend some time researching what kids find cool because they’re your target audience.

Listen to advertisements on the radio, TV and even YouTube to know what’s trending.

Clothing, Shoes & Jewelry

According to a survey done by QZ, here are the most popular products that were sold last year under this category

  • Casual tops (68% of respondents purchased)
  • Shoes (48%)
  • Casual bottoms (38%)
  • Athletic wear (34%)
  • Accessories (26%)
  • Dresses (23%)
  • Underwear (24%)

Do not be demotivated by the pricey tags of huge brands. They’re not necessarily what your customers are looking for.

Amazon shoppers usually go for unique and low-costing products.

You can browse Amazon’s best selling section and see a clear view of what’s hot and what’s not.

Jewelry

This category can offer almost 50% profitability on your investment.

However, it is not as convenient as selling apparel.

While classic jewelry never really goes out of style, a lot of the top-selling jewelry are based on trends.

Make sure you’re up-to-date on the newest jewelry trends. Follow influencers on Instagram and filter out the products worth investing in.

If you want to sell fine-jewelry, however, you will need to switch to a Professional Selling Plan, and have an annual revenue of $50,000 within the Amazon platform.

Plus, you will have to pay a non-refundable deposit of $5,000.

Instead of targeting a huge audience, focus on a niche audience.

7 Optimization Tips for Your Amazon Listings in 2020

amazon-listing-optimization

Wouldn’t it be wonderful if someone searched for your product on Amazon and it ranked on the top of the search results?

Just like Google, Amazon is a whole different world in itself.

There are a number of factors that are responsible for your Amazon listing ranking.

You could be selling a bang-for-the-buck product but still not rank as high as you want to because of some small aspects of your listing.

Here are 7 optimization tips that you can easily implement to your Amazon listings and start ranking higher in 2020.

Use Product Title Limit to the Fullest

Amazon gives you a 250 character-limit on your product listing’s title. Make sure you grab your customer’s attention by letting them know you’re selling exactly what they’re looking for.

For instance, if you’re selling airpods, include related keywords such as bluetooth, wireless, earphones, earbuds, etc. along with some popular brand names.

Some best practices for the product title include:

  • Capitalize the first letter of each word
  • Use numerals (2 instead of two)
  • If a bundled product, state value in parenthesis as (pack of X)
  • Keep it short, but include critical information

Key Product Features – include details that can convert

Let’s assume that someone was interested enough in your listing title that they clicked on your listing.

At this point, your customer will look for the unique benefits that your product offers compared to your alternatives.

  • Highlight the five key features you want customers to consider, such as dimensions, age appropriateness, ideal conditions for the product, skill level, contents, country of origin, and so on.
  • Maintain a consistent order. If your first bullet point is country of origin, keep that same order for all your products
  • Reiterate important information from the title and description
  • Begin each bullet point with a capital letter
  • Write with sentence fragments and do not include ending punctuation
  • Do not include promotional and pricing information
  • Do not include shipping or company information. Amazon policy prohibits including seller, company, or shipping information in product detail pages.
  • Feature bullets help customers evaluate a product, so any non-product-specific information can distract from a customer‘s purchase decision

Use images that need no explanation

If I can figure out what your product does the moment I see your Amazon listing images, you’ve done it right.

A professional image with a white background can help your products be more discoverable in the search results.

bad image amazon

good image amazon

Here are some good components of a good image:

  • Product images must have a white background with a clear image of just the product
  • Product images should be at least 300-dpi 1,000-dpi images are preferred
  • Product images should be in color, not black & white
  • Show the entire product. The product should occupy at least 80 percent of the image area.
  • Include only what the customer will receive; accessories that are not part of the product should not be shown

Use variation relationships to avoid any confusion

amazon variation

Here’s a great example of a great use of variation relationships by Team Sports for size and colour variation.

The color combination buttons ‘Black/White’, ‘Green/White’ and ‘Red/White’ change the variation of the ball in real-time so the customers know exactly what they’re placing an order for.

Here are some rules to stick by:

  • Fully describe each child product, so all will be included in browse and search results
  • Add the size and color to the child product title
  • Use SKUs to build relationships using fields for SKU and ParentSKU
  • List the Child offers under the Parent SKU in the flat-file or XML

Well-written product description

As stated in point number 2, you might think that going straight-to-the-point with bullets can be a great way to convince your customers to buy your product.

However, you can go well beyond that and tap into your customer’s emotional side.

For instance, let’s say I’m selling hearing aids.

I could start the product description with a quote such as ‘Blindness cuts us off from things, but deafness cuts us off from people’.

Then, I can add how effective the hearing aids that I’m selling is for you or your loved one.

  • Describe the major product features and list product information including size, used-for and style
  • Keep it short, but include critical information.
  • Include accurate dimensions, care instructions and warranty information
  • Use correct grammar and complete sentences

Build credibility with reviews & answering product questions

Let your customers know that you’re an actual human being that genuinely cares about anyone who has a query regarding your product.

amazon review

Reviews can play a huge role in your customer’s buying decision. Regardless of whether your product has been featured on huge publications like New York Times, Verge or Washington Post, people will still scroll down to see what the everyday-Joe thinks about your product.

Encourage your customers to leave a positive review by awarding them with an incentive – maybe a slight discount on their next purchase or whatever that is feasible.

This brings me to my next category – the product questions.

Regardless of the complexity of the question, answer everything, even if it has been covered in the description!

Listen to these wise words by Bear Gryll

bear grylls optimization

That’s right. Improve. Adapt. Overcome.

Maybe none of the points that I’ve shared here works out for your product and you sell better by actually breaking them.

Monitor your progress and stick to the changes that make a positive impact on your listings.

If you want to create product feeds that are free of error, consider giving ExportFeed a try.

A guide to listing your products on Amazon – with or without barcodes

amazon-listing-gtin

Amazon is the world’s biggest marketplace with over 101 million Prime users in the United States alone. 

Regardless of where you are in the world, if you are a seller of any business size, it is the best place to get exposure. 

However, a lot of new sellers have trouble getting started with listing their products on Amazon.

You might Google about it and see complex terms like barcodes, GTIN, EAN and more.

Sit back and let’s take me explain in simple terms how you can listing your products on Amazon and give your business a boost in revenue.

Two methods of listing your products on Amazon

    Using Barcodes

Amazon systems are barcode-driven. Each unit you send to a fulfillment center requires a barcode so that it can be tracked throughout the fulfillment process.

The Universal Product Code (UPC) (redundantly: UPC code) is a barcode symbology that is widely used in the United States, Canada, Europe, Australia, New Zealand, and other countries for tracking trade items in stores.

GTIN stands for Global Trade Item Number. It is a numbering system developed by GS1 System (https://www.gs1.org) for identifying trade items such as products and services.

The International Article Number (also known as European Article Number or EAN) is a standard describing a barcode symbology and numbering system used in global trade to identify a specific retail product type, in a specific packaging configuration, from a specific manufacturer.

JAN: An EAN-13 number includes a 3-digit GS1 prefix (indicating country of registration or special type of product). A prefix with a first digit of “0” indicates a 12-digit UPC-A code follows. A prefix with first two digits of “45” or “49” indicates a Japanese Article Number (JAN) follows.

If your products have barcodes that are recognized by Amazon, it is much easier to get your products listed using a product feed solution like ExportFeed.

Where can you apply for barcodes?

Since Amazon validates the barcodes from GS1, ISBN and GEPIR, the barcodes should be purchased solely from those prodviders. 

What type of the sellers require barcodes?

The first step for knowing whether or not you need barcodes is to check whether the product’s brand requires GTIN.

Verify if the exemption is eligible for your category. If it is eligible then you do not require Barcodes. 

Check if that product is already listed on Amazon.

  • Request approval from the other seller and get the barcodes from the provider.
  • Listed products on Amazon also provides the barcodes. 

    Listing your products on Amazon without barcodes

If your product does not have a product ID (barcode), also called a GTIN (Global Trade Item Number), you might be eligible to request a GTIN exemption depending upon the category that Amazon offers. 

There is a list of brands that require a GTIN to list on Amazon. GTIN exemptions are not available for these brands. Any product that belongs to any of these brands and does not have a GTIN will be suppressed.

The fastest way to list your products on Amazon

Now that you’re aware of all of the methods that you can use to list you products on Amazon, you might still be wondering how you’ll be able to spend hours, if not days on creating XML files for your products.

Luckily, you can use a feed automation solution that does all of this for you and can help not only Amazon but other merchants and marketplaces such as Facebook, Google Merchant, Etsy, ShareASale and a lot more.

ExportFeed is one of the best solutions that gives you complete control over your feed files along with the flexibility to customize any aspect of your listing. 

You can give it a free try and see for yourself if its the right fit for your business.

I hope these points helped clear up your confusions related to listing your products on Amazon. 

If you have any questions relating to any of these topics, please feel free to leave a comment and our support team will be happy to assist you in any way possible.

LeGuide.com Merchant’s Feed Requirement Integrated in ExportFeed!

We are happy to announce that we have integrated the feed requirements of Ciao! part of the LeGuide Group – one of Europe’s largest networks of online shopping price comparison and reviews sites with around 13M unique visitors monthly.

By listing on their portfolio of sites you will put your products in front of a large audience of online shoppers ready to buy as well as increase your brand visibility. In addition to that, the LeGuide group offers a great price monitoring tool which will help you gain valuable competitive intelligence.

Houzz.com and Promoting your Products There with ExportFeed!

 

Most of the home developers and house owners decide to grab home improvement ideas from Houzz.com. In this merchant site, you will get access to millions of photos which can easily be browsed to decide upon what type of decoration you want! You also have access to thousands of professionals who are actively involved on various projects. They will help you develop in reality what you have previously thought of in mind just as an image! Now it’s definitely more easier to live up your dreams!

Houzz is also a perfect platform to purchase all the accessories needed for decoration. So it simply is a one stop solution for all designing needs!