Top Amazon Product Categories - Jungle Scout

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Top Amazon Product Categories - Jungle Scout Posted: 16 Jun 2020 12:22 PM PDT Sharing is caring! Facebook2 Twitter0 Whether you're a brand new Amazon seller beginning your research or an experienced Amazon vet, it can be difficult to figure out which product category to focus on.  With 27* categories to choose from, how do you narrow down your research and find the best niche to focus on? Which product categories have the most or least competition? The highest profit margins? The most opportunity to grow your product offerings? We'll cover all that and more.  Which categories can you sell on Amazon? Appliances  Apps & Games Arts, Crafts, & Sewing Automotive Parts & Accessories Baby Beauty & Personal Care Books CDs & Vinyl Cell Phones & Accessories Clothing, Shoes and Jewelry Collectibles & Fine Art Computers Electronics Garden & Outdoor Grocery & Gourmet Food Handmade Health, Household & Baby Care Home & Kitchen Industrial & Scientific Kindle Luggage & Travel Gear Movies & TV Musical Instruments Office Products Pet Supplies Premium Beauty Sports & Outdoors Tools & Home Improvement Toys & Games Video Games *This excludes some categories in which most third-party sellers can't/don't sell, including Amazon devices, gift cards, software, vehicles, and Whole Foods Market. Amazon's most popular categories  When selling on Amazon, or any other platform, it's important to know where and what consumers are buying. You wouldn't want to set up shop at a flea market and realize you're in the wrong parking lot, right?  The same goes for Amazon and e-commerce. If you create a product in a niche or category that very few people shop in, you're going to have some trouble. For this info, we can look to the most popular categories third-party sellers sell in. According to Jungle Scout's 2020 State of the Amazon Seller Report, these are the top categories**, including percentage of sellers who have products listed in them. Top 10 categories Home & Kitchen 45% Sports & Outdoors 23% Toys & Games 22% Health, Household & Baby Care      21% Beauty & Personal Care 21% Kitchen & Dining 20% Clothing, Shoes & Jewelry 19% Baby 18% Garden & Outdoor 16% Tools & Home Improvement 16% Remaining categories in order of popularity Office Products 16% Pet Supplies 15% Electronics 13% Grocery & Gourmet Food 12% Arts, Crafts & Sewing 12% Books 12% Industrial & Scientific 10% Automotive Parts & Accessories      7% Cell Phone & Accessories 7% Appliances 5% Computers 4% Luggage & Travel Gear 4% Musical Instruments 3% Apps & Games 3% Handmade 2% Collectibles & Fine Art 2% CDs & Vinyl 2% **Sellers could select multiple categories. Looking at those categories, it's important to ask yourself: Are these categories too competitive? The last thing you want to do is jump into an oversaturated market with little to no chance of landing on page one of Amazon's search results. But, while these broad categories may be very popular and oversaturated, I'll explain how you can dig deeper into various subcategories to find better product opportunities later on.  What are the main differences among Amazon product categories? 1. Profitability: Which Amazon product categories are most profitable to sell in? Profit margins can vary wildly depending on how much products cost you to source and how much you can sell them for (less cost of doing business — see more on fees here).  Fortunately, for most Amazon sellers, average profit margins range between 17-26% depending on the category. Among the higher profit margins? Handmade products (which still may cost a lot in raw materials and time), followed by some high-ticket items, including computers, appliances, and instruments.  Rank.     Product Category Average Profit Margin 1 Handmade 26% 2 Computers 24% 3 Appliances 24% 4 Musical Instruments 22% 5 Arts, Crafts & Sewing 21% 6 Automotive Parts & Accessories 21% 7 Health, Household & Baby Care 20% 8 Clothing, Shoes & Jewelry 20% 9 Electronics 20% 10 Baby 20% 11 Office Products 20% 12 CDs & Vinyl 20% 13 Luggage & Travel Gear 19% 14 Books 19% 15 Kitchen & Dining 19% 16 Industrial & Scientific 19% 17 Pet Supplies 19% 18 Beauty & Personal Care 19% 19 Cell Phone & Accessories 19% 20 Collectibles & Fine Art 19% 21 Sports & Outdoors 19% 22 Home & Kitchen 19% 23 Grocery & Gourmet Food 18% 24 Garden & Outdoor 17% 25 Apps & Games 17% Profitability is a critical consideration when selling on Amazon, but keep an open mind to find the true best opportunity. Some categories may be more profitable than others but every category has profitable sub-categories within it. Home & Kitchen and Kitchen & Dining are among the top categories among sellers, but both have plenty of subcategories that are not profitable because of increased competition, price wars, direct competition from Amazon, increased PPC costs, etc. Less popular categories can be more profitable than popular categories; for example, Home & Kitchen vs. Arts, Crafts & Sewing. Only 2% of sellers have 51%-100% net profit in Home & Kitchen, whereas 10% of sellers have 51%-100% net profit in Arts, Crafts & Sewing. The point is, you still need to find the right opportunity that's in high-demand with low-competition — so don't get too hung up on categories. 2. Sales: What are average monthly sales for Amazon product categories? Amazon sellers across nearly every category have average monthly sales in the range of $1,000-25,000.  Some categories stand out as having noticeably lower monthly sales (under $1,000): Books, Handmade, and Apps & Games. And others see much higher monthly sales ($50,000+): Musical Instruments, Collectibles & Fine Art, Appliances, and Computers. 3. Selling experience: Which product categories require a high level of experience? Musical Instruments (47% of sellers say they have Advanced seller experience) Computers Appliances Automotive Parts & Accessories Industrial & Scientific Which product categories require the least experience? Handmade (28% of sellers say they have Beginner seller experience) Books Apps & Games Home & Kitchen Clothing, Shoes & Jewelry 4. Fulfillment method:  5. Sales/Business model: Private label (creating your own product/label to sell on Amazon) is popular across nearly every product category, but MOST popular in Home & Kitchen and Sports & Outdoors and LEAST popular in Apps & Games and CDs & Vinyl. Retail arbitrage is a method of finding low-cost or discount goods in brick-and-mortar retail stores in order to resell online. Most popular: Books, CDs & Vinyl Least popular: Home & Kitchen, Clothing, Shoes & Jewelry Online arbitrage is a method of finding a low-cost or discount product on one website or online marketplace to resell on another marketplace. Most popular: Apps & Games, CDs & Vinyl Least popular: Home & Kitchen, Sports & Outdoors Wholesaling is the practice of purchasing low-cost or discounted goods in bulk in order to sell as individual units in a retail marketplace. Most popular: CDs & Vinyl, Grocery & Gourmet Food Least popular: Home & Kitchen, Baby Dropshipping is a business model where an Amazon seller does not keep their own product inventory, but instead, transfers their customers' orders directly to the manufacturer or supplier. Most popular: Collectibles & Fine Art, Musical Instruments Least popular: Baby, Books Handmade sellers are people who create their own products to sell on the Amazon marketplace.  Most popular: Handmade/Handcrafted Products, Collectibles & Fine Art Least popular: Cell Phones & Accessories, Beauty & Personal Care Why do so many people sell in Home & Kitchen? It's no surprise that the Home & Kitchen category is the most popular among sellers; everyone uses some type of home or kitchen product in their everyday lives. However, that's not the only reason why Home & Kitchen is the go-to category for so many sellers. Other reasons include: Lower barrier to entry: Selling in this category is easier than others because it doesn't restrict new sellers from listing in it. See restricted categories here.  More intuitive product ideas: Everyone has some type of kitchen or home product in their house (think spatulas, utensils, pillows, curtains, etc.), whereas in other categories like Industrial/Scientific or Computers, many people don't have much context for those types of products. Fewer complicated requirements: Supplement sellers need to follow Amazon compliance and federal regulations, food must have an expiration date, toy sellers are restricted during Q4, etc. Home & Kitchen has fewer of these regulations. Easy to manufacture: Finding a supplier to manufacture a kitchen product is fairly easy in comparison to many other types of items. Search through kitchen supplies on Alibaba and you'll see how easy it is to get almost any kitchen product you can think of. According to Jungle Scout's State of the Amazon Seller Report, 92% of people who sell in Home & Kitchen created their own private label products, making it much more difficult to launch products in this category.  Should you sell in a popular product category? When conducting your product research in a popular category, there are a few things to consider.  1. Competing with Amazon More than half of Amazon sellers (53%) say Amazon sells its own products that directly compete with theirs.  For example, Amazon will feature its own private label products ahead of yours (even if they aren't ranked as well).  This Amazon brand is featured ahead of all the sponsored products and organic results. An "AmazonBasics" product will typically have a lower price than your product.  Fortunately, not every customer wants the most basic and inexpensive option, and many shop based on brand, product reviews, features, or other differentiators. (See more consumer preference data here.) 2. Competing with other sellers Typically in a popular category, like Home & Kitchen, many sellers identify a niche with a large volume of sales and think they can take a piece of the pie. In reality, they may just be making it harder on themselves. You may see a niche like "apple slicers" and think, "Wow, the top sellers do over $100,000 in sales. I should sell this too."  But when you dive deeper, you see this particular niche is very oversaturated; many sellers have hundreds of reviews, low pricing, and there is nothing that really differentiates each product that is offered.\ A new seller might not think about that and end up attempting to sell a product that cannot compete in an established market.  3. Higher cost of advertising  Categories that are more saturated will have higher advertising costs, which of course come from increased competition angling for the same customers and keywords.  This means you may pay a higher cost per click (or CPC), which might mean your business breaks even or even loses money if you don't monitor your ad spend closely.  According to Keyword Scout, the keyword "diapers" has an estimated exact match brand bid of $35.96, exact match sponsored product bid of $1.40, and broad match of $1.28 per click.  This means you will be paying a lot of money per click when you first launch your product to try and compete with the top sellers. It is difficult to stand out in this highly competitive product if you do not differentiate your product from the competition. When it comes to diapers, there's only so much differentiation you can do, but there's a lot more flexibility in other product spaces. We'll get to that soon! How you can find a less competitive category to sell in 1. Use Google trends  A great free way to keep an eye on what consumers are interested in is Google Trends. Make a point to check out Google Trends every week or so and see if you can identify opportunities to create products. For example, is gym equipment trending? You might want to explore this as a sales opportunity. Simply type in a broad keyword into Google Trends and it will show you the popularity of that topic and if it is trending up or trending down. You can also view related topics, demographics, and related queries which you can use for keyword research. Take some time to explore around this free tool and see what you come up with! Once you have found a trending niche, you can plug that keyword into Jungle Scout to see if you have a good opportunity to sell on Amazon.  2. Explore with Keyword Scout & Opportunity Finder  Use Jungle Scout's suite of powerful tools to help you conduct more accurate product research and to find low-competition, high-demand products.  These tools simplify the way you do keyword and product research.  Keyword Scout helps you generate valuable and highly relevant keywords you can use in your product listings and Amazon PPC ad campaigns. It will also calculate how much you should be spending per keyword to reach the first page. Opportunity Finder allows you to plug in specific criteria to find countless opportunities with high demand and low competition. Turn a keyword into a market segment, and see in-depth data on sales performance, emerging trends, and competitive insights. How it works: Disregard category popularity: A better chance at profitability depends on the niche chosen, the competitiveness of your product, price, cost of goods, etc. Categories that are less active could mean more opportunity for sellers.  Find a low-competition niche: The idea is to start with a broad topic and conduct deeper research into your initial subject. While the broad subject you searched may be highly competitive, the deeper you dig down the "rabbit hole," the more likely you'll discover an untapped market. (Read about how to find a low competition niche here.)  Conduct product research in these categories: If you don't have a product in mind and the product category doesn't really matter to you, then consider searching through the less obvious category options. 3. Monitor consumer trends  Since the start of COVID-19, nearly 50% of consumers are buying more groceries and cleaning products online and on Amazon. While these types of products might not surprise you, other product categories have also seen spikes in interest during this pandemic, and savvy Amazon sellers follow and react to that demand. For example, cookware, puzzles, kids' games, home exercise equipment, and home office products have appealed to the families and workers stuck at home and looking to cook more, entertain their kids, etc. Shopping behaviors are always changing, but while you might not be able to predict drastic shifts in demand caused by events like COVID-19 (and hopefully never have to again with a similar situation), these adjustments serve as a reminder that consumer demand can change in an instant. Sellers need to stay aware. Some good news? Online and Amazon habits are increasingly entrenched in consumer behavior, and 69% of consumers believe the majority of consumer shopping will happen online in the future.  Read more in the 2020 Consumer Trends Report. Does it matter what Amazon category you sell in? As you can see from the data, there are profitable sellers in every category on Amazon, which means finding a category or market with limited competition won't be easy. But it will be worth it! Just keep the following in mind: Choosing a category to sell in will depend on the results of your product research, the competitiveness of the sub-category, and the demand for the product. Don't let sentimentality dictate which category you sell in. Let the data (and demand) determine your category. In other words, don't sell a product with high competition and low demand just because you use it all the time. Follow through. Your profitability is dependent on how you run your business after you find the right product. Make sure you know how to: conduct proper product research, source quality products, negotiate pricing, present a higher perceived value, run profitable PPC campaigns, create an optimized listing, and more.  Want more info or a deep dive in a certain Amazon product category? Let us know in the comments! Sharing is caring! Facebook2 Twitter0

KWFinder review - Techradar Posted: 21 Mar 2020 12:00 AM PDT KWFinder is an all-in-one keyword and SEO tool and analysis platform. Its unique selling proposition is that it helps businesses find keywords that have low SEO difficulty but high search volumes. To put it differently, KWFinder accurately calculates how difficult it is to rank on a search engine results page (SERP) using a given keyword and finds the lowest-cost keyword that delivers the highest SERP ranking. In addition to the keyword finder feature, you can use KWFinder to track how your pages rank over time, analyze backlinks to identify which are helping your search rankings and which are not, and deep-dive into site metrics on website authority and trustworthiness, organic vs. paid traffic, audience segmentation, and competitors. Plans and Pricing KWfinder annual plans are up to 40% cheaper than monthly plans, and you can subscribe to the basic plan, which is ideal for beginners, for about $30 per month with a year-long subscription. It gives you 100 keyword searches, 20 site lookups, and scraping of up to 2,000 backlinks per day, as well as up to 25 competitor keywords (the words that your competitors rank for) per search. Small- to medium-sized businesses would be better off using the premium plan at about $40 per month for three users. This package provides 500 keyword searches, 70 site lookups, and scraping of up to 7,000 backlinks per day, along with unlimited competitor keywords per search. The agency or enterprise plan that is tailored to large corporations and established businesses costs about $80 per month for 10 users. With this package, you can look up 1,200 keywords every day, scrape 15,000 backlinks every 24 hours, and access 700 suggestions of keywords related to your preferred search terms—based on KWFinder's recommendations—so that you can choose those most relevant to your niche or industry. (Image credit: KWfinder) Features  Keyword Identification KWFinder helps you identify the low-cost, high-traffic keywords that will maximize your search ranking improvements per dollar spent. Helpfully, the figures the service provides you with are exact rather than in ranges, as is common with some applications.  Competitor Analysis Use 45 unique SEO metrics to learn what high-authority websites are doing well, what their strong and weak points are, and how your keyword selection compares to theirs. These metrics include domain authority, the number of external backlinks, the number of Facebook shares, visits per month, citation flow/trust flow (which are measures of page influence and reliability), and more.  Ranking Improvements Based on the keywords you use, KWFinder will tell you how much organic traffic potential your site has. You can then benchmark this data against SEO and ranking goals and tweak your approach to iteratively improve the performance of your websites. (Image credit: KWFinder) Interface and In Use KWFinder has a pretty comprehensive set of features but it manages to present all of your search and keyword data in a user-friendly interface that even beginners will find easy to use.   Quickly and easily toggle between services such as keyword search and domain search, see where your traffic is coming from, apply filters, differentiate between paid and organic searches, and see details on click-through rates, price per click, and total volumes all on a single, integrated dashboard. Support The tech team can be reached round the clock via email or live chat. Users who are a bit more hands-on can dive right into the technical documentation provided in the official FAQs and KWFinder knowledgebase. There is also an active YouTube page that posts how-to's and general tutorials that are very thorough and broken down by topic. For advanced help, such as for API access, you need to contact the tech team via an online form, and KWFinder handles such requests on a case-by-case basis. (Image credit: KWFinder) The Competition There are many keyword and SEO tools on the market, but one of the best in terms of user satisfaction reviews is SpyFu. Here is how SpyFu compares with KWFinder:  Price and Features KWFinder, at $30 per month for the basic plan, costs almost the same as SpyFu's entry-level plan, which costs $33 per user per month. They both pack pretty similar features as well, from keyword and competitor search ranking information to SERP analytics, and both applications can be used by beginners as well as mid-sized businesses.  Market Niche One notable difference between KWFinder and SpyFu is that the latter is better at identifying the keywords your competitors use if you do not have much to go on. KWFinder depends on the user to have an idea of who their competitors are and what terms they may be using in order to provide suggestions on the keywords you should use. Backlink scraping with KWFinder works the same way—you need to have an idea of which sites to scrape before you can make use of this feature. Final Verdict KWFinder is very easy to use. You can use simple features when you start off and can get to the more advanced options once you are ready or once your needs change. Breaking down search results and keyword statistics based on region, ranking, or spend is exceptionally straightforward, and you can get right into using the tool as soon as you start your subscription, which is perhaps its biggest selling point.

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