Sometimes, the most important aspects of business management aren’t the funniest. The market analysis seems to confirm it: it’s a matter of reading data and reports, which is certainly not the most exciting thing to do, but it’s essential to the success of your business. Put it simply, without market analysis you can’t make any choices, and if you make your chances of getting them wrong is high. And wrong choices in the world of business mean loss of money.
In this article, we are giving you a helping hand by providing you with an important report about the 15 best-selling Amazon categories in 2022. This is important whether you are selling on Amazon or not because Amazon sales can be used as an index to understand the whole market.
What Factors Affect The Amazon Product Categories’ Profitability?
What kind of factors affects the profitability of products in the amazon categories list? Understanding what are the factors behind a best-selling item could let us anticipate the market trends and make us able to identify profitable products relying less on third-party reports, and more on our own judgment.
1) Profitable Products Solve/Satisfy a Problem/Need
Since the dawn of time, the most profitable products are those that solve a problem or that satisfy a need. So, identifying people’s needs or problems in a particular niche can help you understand what the most profitable products in that category are.
But what about categories of products? The principle is the same: identity what kind of need or issue people are facing in a particular period.
During the pandemic, for example, people needed Internet Connection, computers, and tablets more than ever before: this is how the tech category has become one of the best selling on Amazon and elsewhere.
2) Profitable Products Fill Up a Gap In The Market
Categories of products that respond to an issue or need are profitable, but the very most profitable are the ones that fill up a gap in the demand. What does it mean?
Sometimes, users, a community, or people in general start having a need or problem for which a solution isn’t still available in the market. Those who can identify those gaps and provide an effective solution will be collecting great profits.
3) Trends Affect Profitability
Sometimes the sales for a particular category of product increase because it has simply become trending. As a seller, you always want to be updated about what is trending in your niche. One of the simplest ways to keep up with the trends is by analyzing data from Google Trend. The platform allows you to evaluate search volume for different keywords: the most trending items are of course the ones with the highest volume.
4) Recurring Sales
The most profitable categories are the ones where customers are more likely to make repeated purchases. For example, people buy their smartphone once every 2 years, so this is not a recurring sale. But food, planners, DIY materials are things that people need regularly so these categories can be more profitable. How much more profitable? A study conducted by the Harvard Business School showed that a 5% increase in customer retention can increase profitability by 25 to 90%!
Top Selling Categories On Amazon In 2022
In this section, we’d like to provide a report about the best selling categories on amazon.
We’ve consulted many sources, like the “Best Products of 2022” report by Consumer Report to draw up our list. We’re also relying on independent market analysis and information provided by Amazon itself and other major selling companies.
(1) Consumer Electronics
Many sources, including Forbes, have shown how the pandemic changed markets and trends. With more and more people stuck at home, and forced to follow their classes or do their job from behind a computer, the sales for consumer electronics have grown exponentially.
This is how Consumer electronics has become one of the best-selling amazon ungated categories. Computers, tablets, and smartphones belong to this category, but also any tool or hardware component like SD cards, cables, and more…
The rise in electronics sales isn’t only related to school and work but also entertainment: TVs, streaming media devices, earbuds are also winning products for 2022.
(2) Home & Garden
An article published in The Guardian showed how the pandemic has had a role in the increased sales of home & garden products. The article also tells us that this trend is “here to stay”, which means that, among Amazon all categories, Home & Garden is going to be best-selling during 2022 too.
People are still spending time at home and most of them are taking this time to take care of the house and the garden. Many people see gardening and taking care of the house as “something to do” during the lockdowns. But, as the article in The Guardian has shown, even after the lockdowns are finished, gardening and housing have remained a trend.
(3) Tools and equipment
The fact that more and more people are staying home also determined an increased sales of tools and equipment so that we can mention it among the best-selling amazon gated categories.
For those who are new to the terms gated and ungated, gated categories are sort of amazon restricted categories: you need special permission from Amazon to be able to sell these categories. If your wholesaler is high-quality like SaleYee, Amazon doesn’t hesitate to provide their permission.
(4) Health & Beauty
A study published by McKinsey & Company, titled How COVID-19 is changing the world of beauty, shows in its first pages how the sales in the beauty sector have been increasing since 2005. Since that date, the sector has never registered a drop in sales and kept on increasing up to 2019. For this reason, it is expected to keep on growing in 2022!
The health & beauty category is going to be one of the best-selling categories on Amazon and outside of it.
(5) Kitchen tools
Another important source when it comes to market analysis is JungleScout, a website specialized in discovering and sharing market trends and information. From their list of the most profitable amazon categories, we can learn that Kitchen tools’ sales have increased exponentially during 2021 and we can expect this trend to continue in 2022.
(6) Sports & Fitness
Sports & Fitness is also included in the top ten best-selling categories according to JunglesScout. The reason is still related to the pandemic: people staying at home seem to be determining a lot of market changes and new trends.
(7) Toys & Hobbies
Still using the JungleScout list as a base for our discussion, the third place on their list is taken by the Toys and hobbies category.
We still need to talk about people staying at home: they have more time to spend with their kids (kids too are staying at home more than usual!) and they are rediscovering their hobbies. This same factor is related to the next best-selling product category.
(8) Arts and crafts
For many people, arts and crafts are a hobby they have no time to dedicate to. The pandemic has had many negative aspects, but it has at least made people rediscover their passions and hobbies. The sales in the arts & crafts category are increasing and they are expected to grow in 2022.
(9) Office products
Until a couple of years ago, only a few fortunate people could work from home and have their cozy office in some corner of the house. Today, it is becoming more and more normal. This is why sales for desks, office chairs, but also lamps, office supplies, printers, pens, and things like that are increasing.
(10) Lamps and Lighting
A report published in grandviewresearch.com and called “LED Lighting Market Size” states that the global LED lights market size was valued at USD 50.91 billion in 2020 and is expected to grow even further up to 2028! For this reason, we can consider this Amazon category one of the best-selling ones for 2022.
(11) Pet supplies
Sometimes, when we try to guess what categories are going to be trending next year, a good base is given by a market analysis of the past year: what kind of products’ sales has been growing?
According to a market analysis conducted by Common Thread and called “Pet Industry Trends”, Pet supplies sales have been growing by 63% in 2021! The growth, the article says, is still related to the pandemic. 63% is a huge growth for one sector and this is why we can tell that the pet supplies category is most likely to keep on being trending in 2022.
(12) Musical Instruments
We went back to grandviewresearch.com to try to discover whether the musical instruments market is growing or not in this period. We found an article called Musical Instrument Market Size that says that the market is growing and especially in some areas, like China. If you sell in this area, or all around the world, this is useful information.
(13) Automotive Accessories
Many studies are showing how people, in order to avoid crowds, are picking their car or private vehicle for their daily commuting. When people use something more often, all the sales related to that something start growing. This is why we can expect the automotive accessories category to be one of the best-selling for 2022.
(14) Video games
The last two categories in this list are important, but they aren’t as strong as the previous ones on this list. People are indeed spending more time at home and they are playing more video games, but the growth isn’t comparable to any of all the other categories in this list.
(15) Books
The growth for books is still related to the time people are spending at home. Other than books, also products related to this category are being sold more often: for example, ebook readers and tablets.
How Can You Exploit The Best-Selling Categories?
Now you know what are the best selling product categories for 2022, but what can you do with this information now? How you can exploit it?
First of all, as we’ve mentioned, the fact that we’ve analyzed the best selling categories on Amazon doesn’t have to make you believe that you can only exploit this information if you are an Amazon seller. We’ve only used Amazon as an index to understand the market because it’s one of the largest marketplaces in the world. But it’s not the only one, and you can use it, another marketplace, or both of them! How!
Dropshipping is the ideal solution for you if you want to exploit more than one best-selling category, and more than one marketplace.
What is dropshipping?
With dropshipping, you don’t need to own the products you are selling. When a customer places an order, your job is to buy that product from someone else and sell it at a higher price to your customer. This sounds complicated, but it isn’t! Because there are dropshipping platforms - such as SaleYee - that do all the work for you.
SaleYee: how it works
SaleYee provides you with high-quality that you can sell on your e-commerce or any marketplace you like. When a customer places an order, they take care of everything: expedition and delivery, customer support, and after-sales support.
Why are we recommending SaleYee?
There are many dropshipping platforms out there, so why are we recommending SaleYee?
1. Available categories
First of all, SaleYee can provide products for almost any best-selling category.
2. Delivery service
SaleYee’s shipment and delivery service are outstanding. They have many warehouses spread in many countries. This is how they manage to deliver the items fast and - even more importantly - to offer you and your customers free delivery!
Only by offering free delivery on your products, you can compete with a huge marketplace like Amazon.
3. Customer support
Customer support is important when you sell online because it affects your perceived reliability. When you are new to the business you may have difficulties providing high-quality customer support, because it requires employees, resources, and more. SaleYee takes care of customer support.
4. After-sales
SaleYee’s service doesn’t end when the purchase is made; they can provide after-sales services such as refunds or replacements management.
Conclusion
With this article, we not only provide you with some important knowledge but also with the tools you need to exploit it. Now it’s your turn to start your winning sales business!
