What to Sell on Amazon in 2022 and How?

What to Sell on Amazon in 2022 and How?

This article reviews some of Amazon's best sellers, most profitable niches, what to avoid and how to sell on Amazon in 2022.

Building a sustainable e-commerce business in today's market is challenging thanks to the fierce competition. Amazon is at the height of this, with approximately 9.5 million sellers globally. Despite starting as an online bookseller in 1994, it quickly evolved into a marketplace for everything.

To penetrate the market, you must understand what products are profitable. Buying habits change every year, but with the 2020 pandemic drastically altering people's lifestyles, some clear trends emerged. This article reviews some of Amazon's best sellers, most profitable niches, what to avoid and how to sell on Amazon in 2022.

Amazon Best Sellers and Profitable Niches in 2022

You may be wondering if it's worth your time trying to grow a brand on this global platform. Despite the competitive nature of the e-commerce hub, with the right Amazon management and marketing strategy, there is still huge potential to build a thriving business.

Since 2020, people have adapted their lives, with a considerable portion of individuals still working from home today. In fact, the years following 2020 acted as a catalyst for many of Amazon's current trends. Notably, at a time when no one could leave the house, Prime delivery was a saving grace. Thus, 2022 sees some key departments growing due to the changes in how people live.

Pet Supplies

As they spent more time at home, numerous families considered getting a companion. A 2021 report found that approximately 3.2 million UK households got a pet, with this number increasing since. Light and easy to manufacture items, like pet accessories, are a familiar bestseller on Amazon. Particularly accessories for dogs and cats, like collars, leashes and beds. Research by PFMA (Pet Food Manufacturers Association) highlighted that of the new pets, 57% were dogs, and 38% were cats.

Home and Kitchen

Consumers are investing their money into home decor, appliances, and accessories to make sure they enjoy their space, particularly as they spend more time there. Alongside decorative pieces, creative cooking kits, and new kitchen utensils, many are shopping for products to upgrade their home offices. The rise in remote workers has spiked, and office accessories are more popular than ever.

Sports and Outdoor

In a similar fashion to the home, consumers are shopping for more outdoor items and sports products, from garden furniture and accessories to workout equipment. As we will discuss in the next section, sport and exercise are gaining momentum as more people prioritise wellness and do at-home workouts. Having access to affordable equipment is key, and Amazon's infamous delivery makes it an attractive option for this niche.

Wellness and Personal Care

wellness and personal care

One of the top-performing industries is the broad category of wellness. People are making lifestyle changes to better their physical and mental well-being, which reflects Amazon's sales. For instance, hair care products, yoga mats, multivitamins, exercise bands and face masks are popular items in this sector. Since 2020, individuals have needed more things to do in the home, and thus they have turned to home workouts, skincare accessories, mindfulness and crafting. All items that Amazon supplies.

However, wellness also weaves into other categories as consumers opt for natural, eco-friendly alternatives for their pets, home and outdoor spaces. For instance, some home decor products like candles, aromatherapy devices or plant-related items are popular as they allow people to decorate their home with nature and well-being in mind.

What to Avoid Selling on Amazon?

Before selling on Amazon, make sure to review the policies as there are some restrictions. For instance, there may be restrictions for products with expiration dates, meltable goods and dangerous items. What's more, numerous products require approval before selling, such as jewellery, DVDs, collectable coins and many more.

Alongside the apparent restrictions, there are some less profitable products on Amazon's marketplace. Handmade and custom products don't tend to thrive in this e-commerce platform and are better suited to alternative platforms like Etsy, where buyers are looking for more unique items.

How to Identify Best Sellers and Decide What to Sell on Amazon

When assessing which products to sell on Amazon, it's essential that businesses don't simply replicate the bestsellers list. Although it's a suitable place to start, and you're able to view international rankings too, there are some challenges to be aware of.

Firstly, the listings will be extremely competitive, as every seller can view this information. What's more, simply looking at lists of trending items and categories doesn't show other essential information. For instance, top-selling products may be trending down, meaning you may join when it is no longer in demand. You're also unaware of the profit margins, making it potentially unsuitable for your business goals. That said, it can still be helpful, alongside other sections like "customers also bought" that allow you to view similar products.

What You Need to Consider Prior to Selling on Amazon in 2022:

  • How many people are selling this item? While bestsellers lists are insightful, be careful not to pick a too heavily-saturated market. In fact, a product with an international customer base may provide more growth potential. 
  • What are the average monthly sales? Avoid seasonal products or items that are too 'trendy'. Aim for something that will produce consistent sales all year to promote sustainable growth.
  • Are the products trending up or down? Try to discover medium to high-demand items with a minimum of 10 sales per day. 
  • Can you niche down? Most buyers go to Amazon because they want a specific item. If you can provide an innovative product in a profitable niche, you're more likely to stand out from current sellers. Once you choose your product, reach out to suppliers and consider if you can create a new version of these items to gain an advantage over your competitors.
  • What are the average reviews? Not only can you determine the public's general opinion of these items, but you're able to highlight common complaints and areas for improvement. Use reviews to improve your products and offer a better alternative. Furthermore, when looking at bestsellers, you may find an emerging trend if a product has a small number of reviews but mostly 4 or 5-star ratings. 
  • What is the average price? Aim for a product that is between $20-$70, inexpensive to make or source, and easy to ship. All of this will help you increase profit margins and grow a successful brand with minimal returns. 
  • Can you create your own private label products? Having your own brand typically means your products are less expensive to buy compared to well-known names in the industry. Alongside being easier to profit from, you're in control of how you market your stock. That said, this does require some extra work, such as building a reliable customer base. Fortunately, many people consider amazon consulting to discuss the best strategy to grow.

After identifying what products are suitable and have potential in today's market, it's time to track down suppliers, set up your Amazon brand and develop an Amazon marketing strategy to reach the right customers. 

How to Grow Your Amazon Brand? 

It's no secret that getting your brand noticed on Amazon is difficult. Still, with the right marketing, your Amazon brand can target a suitable audience, so you're making sales and building a sustainable business. Amazon marketing is essential, but it requires time, hard work and skill. Some business owners consider hiring an amazon marketing agency to manage their strategy and produce significant results. In the next section, we discuss the three primary components of amazon management, how they help grow an e-commerce business, and what an amazon consulting agency may offer. 

brand growth

Search Engine Optimisation (SEO):

SEO is vital to ensure your products appear when your ideal customer searches for them. Through in-depth keyword research and content optimisation, it's easier for your products to rank high in search results and generate more organic traffic to your listings. Due to the high competition, getting SEO right is crucial. However, it takes time to set up your listings correctly, so Amazon ranks them highly. This is where skilled SEO professionals and Amazon growth experts are perfect, as they can use proven strategies to ensure your brand is targeting the right keywords.

Pay-Per-Click (PPC):

Advertising is a huge part of Amazon's platform and its success. Sellers can utilise the PPC features to appear higher up the search results through bidding and quality scores. Consulting with an amazon agency or using their amazon management services is the best way to make the most of PPC ads and promote your products consistently. You can use their skill to grow your brand as they already understand how to optimise ads to boost your sales and increase ROI.

Conversion Rate Optimisation (CRO):

Improving your conversion rate is the aim for all Amazon businesses, as the higher the conversion rate, the more sales you generate. Consequently, improving sales and conversion also improves your bestseller's rank. Enhancing product listings is a direct way to achieve this through title and image optimisation, creative and compelling copy, structure, and review aggregation.

An Amazon agency offers various packages to suit your needs, from consulting to full-service amazon management. They identify the right strategy, analyse relevant keywords, optimise listings, and curate high converting ads, so you can build a successful company on Amazon while still having time to focus on your core business and product development. A full-service Amazon agency is home to a team of professionals specialising in Amazon SEO, curating optimised content and growth experts who have scaled numerous Amazon brands.

Final Thoughts

Amazon bestseller lists are ever-changing, but they present a starting point for brands trying to identify profitable niches. It's essential to analyse the potential of a product by reviewing the average price, reviews, monthly sales, and the number of current sellers. After choosing your product, try to stand out from the competition by upgrading the item and positioning yourself as a better alternative.

Strategic Amazon marketing is crucial if you want to sell on Amazon in 2022. As we have seen, it takes dedication, expertise and consistency to execute a successful growth strategy. Those who consult an agency or invest in full-service amazon management benefit from a team of experts with proven experience growing Amazon brands. With their day-to-day management, you have more time to focus on product and business development as the team sets up your business for sustainable growth.

Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.

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