Among the annual sales of 200 billion to 400 billion US dollars on the Amazon platform, different categories occupy different market shares, some with large market demand and others with relatively small market demand. I would like to share with you some suggestions on category operation based on the sales share of each category and my operation experience, which are living and home (40%), kitchen and dining (16%), sports and outdoor (21%), beauty and personal care (9%), office supplies (15%), gardening and decoration (14%), maternal and child products (12%), pet products (13%), toys and games (19%), home and baby care (18%), tools and home decoration (4%), daily necessities (12%), clothing accessories (13%), art and crafts (12%) 3C electronics (12%).
For the above classification data, share the following examples:
1) Case 1
You can see that the “Best Seller” label of Apple AirPods Pro ranks far ahead in Amazon’s headphone category. According to Amazon’s review accumulation rules, as of July 25, 2021, its number of reviews has reached 209,293. In the headphone category, the average number of reviews for the top 100 listings also increased from more than 40,000 in 2019 to nearly 250,000 in December 2020, and the average score rose from 4.1 to 4.4. As of now, half of the products in the top 100 have at least 10,000 reviews, more than twice as many as a year ago, and many other categories of products have shown the same changes.
Therefore, although 3C electronic products are popular, most small categories of products are in a “perverted” competitive environment. As a novice on the Amazon platform, the money in this category is not so easy to make, and it is strongly discouraged.
2) Case 2
Mother and baby products, clothing, shoes and bags are also very popular, but everyone should pay special attention to the fact that the classification and review of products related to children, such as stationery, school bags, etc., are particularly strict. Let us take children’s school bags as an example to share with you.
First, it is necessary to prepare safety inspection reports for products in this category, including CPSIA, CPSC and CSPA.
Secondly, it is necessary to add a “WARNING” reminder label on the Listing page.
Finally, the school bag must also have an information label with a “Warning Sign” ( Warning label), including origin, brand, materials, precautions, especially in the European and Japanese markets. If this category of products does not carry the above information label, customs will directly detain them during random inspections, and they will not have the opportunity to enter Amazon FBA.
3) Case 3
Home furnishings, kitchen utensils, and clothing accessories have always been hot-selling categories on Amazon, but the product styles in these categories must pay attention to the cultural differences between the East and the West. For example, products such as chopsticks, bracelets, and mahjong all reflect the strong Chinese culture. In addition, the red color representing festivity and the dragon representing auspiciousness are both Chinese characteristics. Therefore, some students previously sold chopsticks and mahjong with obvious dungeon characteristics. (Search on the platform and you will find that there are still many people selling.)
Although there will be orders for these products, these culturally rich products are still relatively niche for foreign customers. I believe that as the motherland becomes stronger, Chinese culture will slowly be recognized by the world. At present, it is recommended that Chinese Amazon sellers try to consider the living habits of foreign customers when selecting products, and choose categories and products suitable for consumers based on market demand, and then guide demand when the time is right.
Finally, the conclusion is: determining the classification is to help sellers lock in a direction for their Amazon business, just like a lighthouse in the sea. You must set a long-term goal so that you don’t lose your way.