Product research and sourcing are of great importance for Amazon sellers. To help you discover profitable Amazon categories and top-selling products, here are some product-sourcing tips and dedicated Amazon pages to serve as your guide. 

What is the Amazon Best Sellers Page?

The Amazon Best Sellers is a dedicated page for Amazon and sellers alike to check which products are popular based on sales. This page is valuable for Amazon sellers who are doing product research. 

On this best sellers page, you will find top-selling products under a specific Amazon category. From Amazon Devices and Accessories down to the Video Games category, you can stay updated on what is trending on Amazon.

Amazon.com: A Screenshot (cropped) of Amazon Best Sellers page; Retrieved: August 5, 2021, From https://amzn.to/3xDghyV

What makes this Amazon Best Sellers page unique is its hourly bestseller update, along with a numerical ranking system. Each category showcases the top 100 Amazon products that come with global and star ratings. 

Amazon.com: A Screenshot (cropped) of Amazon Best Sellers page; Retrieved: August 5, 2021, From https://amzn.to/3lBtrd7

Aside from the Amazon Best Sellers page, Amazon FBA sellers can check other relevant pages for the biggest-selling product ideas. The pages highlighted above include New Releases, Movers and Shakers, Most Wished For, and Gift Ideas page.

How to Find Profitable Products to Sell on Amazon FBA

For most Amazon sellers, success in the Amazon marketplace begins with the proper selection of inventory items. If you wish to have a good starting point in discovering Amazon’s top-selling products, here are things you should consider. 

• Follow the Trend 

To avoid slow-moving products, follow the trend. The trend is your friend in eCommerce. Trending products are always in high demand, which is why Amazon sellers should capitalize on these trending items for improved sales. 

• Avoid Seasonal Products

If you are still new to Amazon FBA and would like to see growth in your store, you should avoid inventory items with a high degree of seasonality. 

Items such as Christmas paraphernalia will likely attract customers during Q4 only. It would be best to invest in items that are likely in demand all year long. 

• Utilize Product Research Tools

If you want to speed up the process of finding top-selling products or profitable Amazon categories, use a product research tool. 

This type of Amazon seller tool not only provides you with a list of items that are trending or in demand, but it can also provide you with data analytics for better decision-making. 

• Look for Small, Light & Durable Items

If you want to maintain a healthy profit margin, you should search for small, light, and highly durable products. Small and light items mean less shipping cost, especially if you are importing overseas. 

The durability of the item will help ensure that items are intact while in transit to the Amazon FBA warehouse. This will also help prevent potential complaints from customers due to product damage.

• Check The Amazon Best Sellers Rank 

An Amazon Best Sellers Rank (BSR) is another good indicator of how well a particular product is performing in terms of sales on Amazon.com. The lower the Amazon BSR, the better it sells in a specific Amazon category. 

Hence, it should not be taken as an overall ranking but rather an indicator of the product’s sales performance in a given category. 

The Amazon Categories and Products Connection

Similar to choosing the best-selling product, selecting the top category for your business is also crucial in 2024. Both the product and category are interconnected. 

With the help of your product research, you will be able to identify which Amazon category is right for you. You should not discount one over the other. Both products and categories should be viewed simultaneously for better sales performance. 

Top 10 Profitable Categories on Amazon (2024) – Best-Selling Products on Amazon

Some of the top selling categories on Amazon have historically been clothing, beauty products, electronics categories, pet supplies, and more. These product categories may continue to be popular in 2024. 

However, less popular product categories have the potential to yield higher profits compared to those that are more popular. Take the Amazon Handmade category as an example. In a survey, Handmade is one of the least popular product categories but has the highest number of profitable sellers, obtaining profit margins above 20%.

In order to enhance your Amazon sales, it is essential to consider the best Amazon categories with higher profit margins and the profitable products in each. Here are some of the best Amazon categories and most profitable items to sell on Amazon this year, wherein the majority of sellers had a net margin of 21% and up. 

1. Beauty & Personal Care

In 2024, the aftermath of the pandemic continues to shape consumer behavior and eCommerce sites activities, emphasizing a renewed focus on personal well-being. This has fueled a significant increase in demand for one of the top Amazon categories: Beauty and Personal Care. As individuals prioritize self-care as a cornerstone of their daily routines, beauty and personal care became one of the most profitable product categories.

A quick check with a keyword research tool highlights the widespread interest, with the keyword ‘personal care products‘ maintaining a substantial average search volume of around 1,000 to 10,000 searches. This trend represents a valuable opportunity for your own brand to cater to evolving consumer preferences and position your private-label products  in the broader landscape of self-care and wellness.

Top Selling Products in This Category | Product Ideas: 

• Pimple Patch
• Biobased Makeup Remover/ Towelette
• Hydrating Serum 

Pro-tips to Succeed in the Beauty & Personal Care Category 

Before ordering from suppliers some products to sell, make sure that the products you will be selling on Amazon comply with all federal, state, and local laws, as well as Amazon policies and product restrictions. Ensure that your Amazon product detail page includes specific notes and instructions from the manufacturer to keep consumers well informed. 

2. Home & Kitchen 

Top-selling products on Amazon are often listed in the Home & Kitchen category, which offers a broad range of products while catering to diverse consumer needs and preferences. Consistent high demand throughout the year is fueled by consumers frequently making repeat purchases to replace or upgrade their belongings, making the Home & Kitchen category one of the profitable categories this year. 

Amazon’s Home & Kitchen category is not just profitable; it is a game-changer for an online business. With attractive profit margins, 30% of Amazon sellers report a profit margin of 21% and up. To capitalize on this profitability, thorough product research is essential. For example, top-selling items on Amazon in this category often include:

Top Selling Products in This Category | Product Ideas: 

• Ant Killer
• Stainless Steel Tumbler
• Queen Size Bed Sheets

Pro-tips to Succeed in the Home & Kitchen Category 

Improving your sales performance in the Home & Kitchen category can be achieved through strategic upselling tactics. A powerful approach is to leverage the “Frequently Bought Together” feature, enticing Amazon shoppers to explore complementary products that enhance their online shopping experience.

For example, when selling a coffee maker, consider bundling it with coffee filters or a stylish coffee mug set. By doing so, you fulfill their immediate need and provide added value and convenience. This strategic upselling technique increases the average order value and enhances customer satisfaction by anticipating their needs.

3. Clothing, Shoes & Jewelry

Clothing, Shoes, & Jewelry are among the top Amazon categories due to their consistent demand and wide appeal. With seasonal demands and occasion-based spending, this category remains one of the profitable Amazon categories, which sellers can strategically capitalize on by offering clothing, shoes, or jewelry products in heightened demand during holidays and events. 

The Clothing, Shoes, & Jewelry category offers a diverse product range and market segmentation, providing sellers with the flexibility to target niche markets or specific demographics with low competition. From budget-friendly to high-end products, this category caters to a wide range of customer preferences, making it an attractive option for sellers. 

Additionally, with cross-selling and upselling opportunities, this Amazon category presents numerous opportunities to thrive by providing a compelling assortment of products; a good starting point for your product research are the ones outlined below:

Top Selling Products in This Category | Product Ideas: 

• Yoga Pants
• Men’s Shorts Sleeve Tees
• Bodysuit (Tummy Control)

Pro-tips to Succeed in the Clothing, Shoes & Jewelry Category 

To excel in the Clothing, Shoes, & Jewelry category, it is essential to stay attuned to fashion trends and tailor your inventory accordingly. This will ensure that your product listings are seasonally relevant. Invest in professional product photography and provide detailed product descriptions, including material, sizing, and care instructions, to assist customers in making informed decisions. 

4. Arts, Crafts & Sewing 

Arts, Crafts & Sewing emerges as one of the profitable Amazon categories due to its appeal to hobbyists, DIY enthusiasts, and creative individuals. Moreover, the rise of DIY culture and the increasing popularity of handmade and personalized items contribute to the sustained demand for arts, crafts, and sewing supplies, which is why in 2024, it ranks as one of the top Amazon categories with 23% of sellers making a profit of 21% and up. 

Top Selling Products in This Category | Product Ideas: 

• Acrylic Paint
• Scissors
• Tape Measure (Double Scale)

Pro-tips to Succeed in the Arts, Crafts & Sewing Category 

One of the best methods to increase your profit and achieve sustainable growth in selling arts and crafts items on Amazon is learning to diversify your inventory to cater to different demographics of buyers. This simply means that your available items should not only appeal to young audiences but also mature ones.

In terms of optimization, you should provide your buyers with a detailed description, especially when it comes to art materials. Shoppers in such categories are searching for a specific item for a specific task, which is why having a clear and informative description matters for shoppers. 

5. Electronics

The electronics category is a must-examine category for an Amazon seller. Since electronic products and devices are constantly improving and innovations are introduced regularly, consumers are always excited to purchase the latest products from this category. 

The electronics category remains one of the top-selling categories on Amazon in 2024, with approximately 22% of sellers reporting a net margin of at least 21%. From smartphones and laptops to home entertainment systems, this top category encompasses a vast array of products catering to diverse needs and preferences, including the following Amazon products: 

Top Selling Products in This Category | Product Ideas: 

• AirTag
• Amazon Fire TV Stick
• Wireless Earbuds

Pro-tips to Succeed in the Electronics Category 

Optimizing your listing will increase your chances of success in this category. Do not simply settle for the product information provided by the supplier. 

Although copy-pasting the information to the product description section of your listing is beneficial, it would also help add your own experience with the product as a user. It will give potential buyers more ideas about the user experience of the electronic product.  

That is one of the reasons why you should ask for a product sample from any of your inventory suppliers. It will give you a better understanding of the product, including the user experience. 

6. Sports & Outdoors

Driven by the increasing emphasis on wellness and outdoor activities, the Sports & Outdoors category is one of the profitable Amazon categories this year. It is an ideal category for Amazon businesses whose niche revolves around fitness equipment, camping gear, hiking accessories, or athletic apparel.

Despite the presence of physical stores in the outdoor and sportswear market, a significant 21% of sellers are able to achieve a net profit of 21% or more. Amazon sellers can maximize their profits by offering relevant products and promotions at the right time. Some of the top-selling products on Amazon in this category include:

Top Selling Products in This Category | Product Ideas: 

• Coated Hexagon Dumbbells
• Exercise Bands
• Stainless Tumbler

Pro-tips to Succeed in the Sports & Outdoors Category 

To succeed in the Sports & Outdoors category, consider collaborating with sports and outdoors influencers or experts in relevant niches to reach a wider audience and gain credibility. Additionally, you should not overlook sustainability efforts, as eco-conscious consumers increasingly prioritize environmentally friendly products and practices.

7. Health, Household & Baby Care

Consumers’ ongoing need for everyday essentials and family-centric products makes this product category one of the top Amazon categories. Since the Health, Household & Baby Care category encompasses a wide range of items, including vitamins, cleaning supplies, baby care essentials, and more, about 21% of sellers reached a net profit margin of 21% or more. 

These products are fundamental to daily life and well-being, so the category experiences consistent demand and repeat purchases. For your eCommerce business to attract more customers, you should cater to individual and family needs. You can capitalize on consumers’ life stage transitions, such as pregnancies, births, and aging, to increase spending on health, household, and baby care items. 

Top Selling Products in This Category | Product Ideas: 

• Paper Towels
• AA Alkaline Battery
• Wet Wipes (Flushable)

Pro-tips to Succeed in the Health, Household & Baby Care Category 

In the Health, Household & Baby Care category, it is crucial that your online store provides a broad selection of products tailored to consumers’ lifestyles, health needs, and life stages. To achieve this, start by deeply understanding your audience’s diverse preferences, which can vary significantly among different consumer demographics. Doing so can ensure your inventory effectively addresses a wide range of customer needs and preferences.

8. Toys & Games

The Toys & Games category is profitable all year on Amazon, with 20% of sellers reporting a net profit margin of 21% and above. This category’s popularity is mainly driven by its appeal to children, parents, and gift-givers alike. 

Amazon sellers can include various products on their listings that cater to different age groups, interests, and preferences. Your Amazon business can offer products such as traditional toys, board games, puzzles, video games, and educational toys, including the following:

Top Selling Products in This Category | Product Ideas: 

• Latex Balloons 
• Modeling Compound
• Foil Curtain Backdrop 

Pro-tips to Succeed in the Toys & Games Category 

When selling toys and games, new sellers should be familiar with the current trending games. You should get a feel for what consumers like the most in this particular niche market. Try to establish a target market to focus the resources of your own online store on products that sell on the Amazon marketplace. 

9. Grocery & Gourmet Food 

The Grocery and Gourmet Food category is another profitable Amazon category. It presents a great opportunity for Amazon to cater to consumers’ everyday needs and desire for culinary exploration. With the pandemic accelerating the trend towards online grocery shopping, the Grocery and gourmet Food category has become one of the top Amazon categories. 

Top Selling Products in This Category | Product Ideas: 

• Protein Shake
• Essential Energy Drinks
• Coffee Pods

Pro-tips to Succeed in the Grocery & Gourmet Food Category

When offering Grocery & Gourmet Food items on Amazon, proper preparation, packaging, sealing, and labeling are essential. Remember to use the manufacturer’s UPC code when listing the products, and ensure your business has the necessary licenses or approvals from relevant government agencies. Furthermore, it is crucial to comply with federal and state laws as well as Amazon’s policies to avoid penalties or account termination.

10. Cell Phone & Accessories

The Cell Phone & Accessories category is considered one of the most profitable Amazon categories. With the constant evolution of mobile technology and the widespread adoption of smartphones, this category experiences steady demand for a wide range of accessories, including the following:

Top Selling Products in This Category | Product Ideas: 

• Glass Screen Protector for iPhone 14/13
• Portable Charger 10000mAh
• Power Adapter 

Pro-tips to Succeed in the Cell Phone & Accessories Category 

Achieving success in the Cell Phone and accessories category requires a proactive approach to keeping pace with ever-evolving technological trends and consumer preferences. 

It is essential to keep your Amazon Listings updated with the latest smartphone models and accessory innovations, catering to a variety of consumer budgets and preferences. Boost your product presentations by prioritizing captivating product listing images and detailed descriptions, effectively showcasing the features of your Amazon listings to attract and engage Amazon shoppers. 

Holistic Approach for Better Sales 

While profitability is an important factor to consider when selling on Amazon, it is important to keep an open mind and not limit yourself to a particular Amazon category. The key to success is finding a high-demand, low-competition opportunity. Hence, you should conduct product research to find profitable best products to sell on Amazon that bring profit to your Amazon FBA or FBM business. 

To make your Amazon campaign successful, it is important to take a comprehensive approach, not just focusing on the top Amazon categories or best products to sell on Amazon. Other important aspects of your business operations, such as Amazon repricing, marketing, listing optimization, inventory management, customer feedback management, and more, should also be considered to ensure the overall success of your campaign.

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Last Year’s Profitable Products – Last Year

Handmade

The idea of selling handmade products on Amazon is popular among members of Amazon Seller Central. Some Amazon FBA sellers do not view handmade items as an inventory destined to be part of Amazon’s best sellers.  Others believe that handmade items are suited for Shopify and similar platforms for consistent sales. 

However, Handmade is one of the profitable product categories to venture into when selling products on Amazon. According to a recent survey, the average profit margin for the Handmade product category is 32%. And this is relatively high compared to other popular categories found on Amazon. The data also suggests that many Amazon shoppers visit an Amazon store for online shopping of handmade items.

Top Selling Products in This Category | Product Ideas: 

• Funny Bachelor Gift
• Personalized Lovely Symbols Pets Collar
• Small Hoop Earrings for Cartilage Nose

Pro-tips to Succeed in the Handmade Category

When selling your own handmade products on Amazon, make sure to use high-quality photos. If your work contains special and unique detail, it needs to be emphasized for Amazon shoppers to see and appreciate it better. Make use of proper imagery tools to highlight the uniqueness of your item.

CD & Vinyl 

Despite the increasing popularity of online music streaming platforms like Spotify, Deezer, and Grooveshark, there still remains a demand for CDs and vinyls. Sellers wanting to capitalize on this consumer demand should consider selling products under the CDs & Vinyl category. The said product category is one of the profitable niches to sell on Amazon because of its favorable 27% average profit margin. 

Top Selling Products in This Category | Product Ideas: 

• Linger Awhile | Samara Joy (Artist) 
• Just Like That… | Bonnie Raitt (Artist) 
• TRUSTFALL Explicit Lyrics | P!nk (Artist) 

Pro-Tips to Succeed in the CDs & Vinyl Category   

When dealing with this particular category, you should be aware that CDs and types of vinyl appeal to specific online shoppers. For that matter, you should sell products that are popular in specific genres and items on a collectible level. Additionally, the use of an AI repricer will also help you with your product pricing and Amazon Buy Box win rate.

Industrial & Scientific 

Although not that popular, the Industrial & Scientific category can bring more profit to your Amazon FBA business. It is an ideal category if you wish to avoid too much competition from new sellers targeting high-demand products or product categories.  It offers a higher profit margin of 25% compared to popular Amazon categories like Kitchen & Dining, Electronics, and Home & Kitchen, making it worth exploring for financial gains.

Top Selling Products in This Category | Product Ideas: 

• COVID-19 Antigen Rapid Test
• Disposable Face Mask Filter
• Powder-Free Nitrile Exam Gloves

Pro-tips to Succeed in the Industrial & Scientific Category 

When selling in this Amazon category, it is essential to focus on your target market and understand its current needs. By researching your customers, you can identify their challenges and tailor your offerings to meet their specific needs.

The primary customers of the Amazon Industrial & Scientific category come from diverse industrial and scientific backgrounds, including but not limited to laboratory technicians, dentists, medical professionals, chefs, electricians, farmers, construction supervisors, and others. You should research products that can provide the needs of these specific professionals.

Luggage & Travel Gear 

With most of the borders now open for travelers, there has been a surge in travel activity. It creates a favorable situation for sellers to capitalize on consumers’ strong desire to travel. The Luggage & Travel Gear category on Amazon is a worthwhile option to consider for profitability, as it boasts an average profit margin of 25%.

Top Selling Products in This Category | Product Ideas:  

• Set Packing Cubes Luggage
• Hair Spray Bottle – Ultra Fine Continuous Water Mister
• Toiletry Bag Travel Bag with Hanging Hook

Pro-tips to Succeed in the Luggage & Travel Gear Category 

To increase sales of your luggage and travel accessories, emphasize the longevity and sturdiness of your products. Try to present customers with detailed and clear images that show the product’s interior and exterior features.

Focus on the practical benefits that your product offers, such as its storage capacity, to help customers understand its real-life value. By highlighting these aspects, you can draw more customers and increase your eCommerce business sales in this profitable Amazon category.

Video Games

It is not possible to mention profitable categories on Amazon without mentioning video games and its 23% average profit margin. The video game market is worth about $138 billion. Amazon’s commitment to the video game market has made video games one of the most profitable product categories for Amazon sellers. As a video game seller, you must provide a variety of options for your buyer.

Top Selling Products in This Category | Product Ideas:  

• $10 – PlayStation Store Gift Card [Digital Code]
• $20 – Xbox Gift Card [Digital Code]
• $20 – Nintendo eShop Gift Card [Digital Code]

Pro-tips to Succeed in the Video Games Category 

Amazon created Twitch, a video game streaming platform to keep gamers occupied. You should leverage this in selling video games on Amazon. Promote your video game’s product availability on Twitch to appeal to the cohort of gamers created by Amazon – the Twitch Prime Members.

Pet Supplies

Over the past years, there has been an increase in pet ownership, especially during the pandemic, contributing to Pet Supplies being a thriving Amazon category with a 22% average profit margin. This is no surprise since in the United States alone, it is estimated that more than 80 million families own a pet. Aside from physical stores, owners love to shop for their fur babies on Amazon.  

Top Selling Products in This Category | Product Ideas:

• Earth Rated Dog Poop Bags
• Dog and Puppy Pee Pads
• Fresh Step Clumping Cat Litter

Pro-Tips to Succeed in the Pet Supplies Category  

If you aim to increase your profit within this Amazon category, the best products to sell should focus on the two most popular pets globally, dogs and cats. Try to focus your inventory on items that are relevant to dog and cat owners. This may include food, clothing, accessories, and other trending products for pets. 

Musical Instruments

The Musical Instruments category is another category offering a great opportunity for Amazon sellers. If products are chosen correctly for one of the best-selling categories on Amazon. such items can easily become the most profitable products to sell on Amazon. Although not frequently included in Amazon’s bestsellers, this category amazingly offers a potential 21% profit margin. 

Top Selling Products in This Category | Product Ideas:

• Nickel Wound Electric Guitar Strings 
• Yamaha YRS-24B Plastic Soprano Recorder
• Standard XLR Male to Female Balanced Microphone Cable

Pro-tips to Succeed in the Musical Instrument Category

When selling musical instruments, honesty is the best policy. You should be honest about the quality and condition of your items. You must disclose the warranty type that the product comes with, especially for international musical instruments. To avoid issues and for smooth transactions, you should follow both the general guidelines and the specific guidelines set for the Musical Instrument category.

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Just like the U.S. marketplace, maintaining an adequate Buy Box share is an integral part of capturing sales. To help you track orders, you can use Amazon order ID for reference. 

Although repricing works similarly in the EU as other marketplaces, one thing that is often overlooked by many sellers is repricing feeds. A repricing feed is a mechanism by which a third-party repricer communicates with Amazon in order to make price changes. One thing to remember about pricing feeds is that third-party solutions are all held to the same standard and quota by Amazon’s MWS or Marketplace Web Services. 

When a third-party solution connects to a seller’s Seller Central account, seller ID is paired with the third-party’s developer ID. When referring to request quotas or throttling, the limits are enforced based on this seller ID/developer ID pairing. 

What is Throttling?

Amazon’s MWS documentation uses an example called, “The Leaky Bucket Algorithm.” This algorithm is based on an analogy in which a bucket that has a hole at the bottom leaks at a constant rate. Water can be added back into the bucket, but the more water that is added, the more water continues to flow out. The water will overflow as it exceeds the capacity of the bucket.

If you think about this analogy in terms of repricing feeds, the bucket represents the maximum number of requests a developer can make on behalf of a seller. If too many repricing feeds are sent during a specific period of time, the bucket overflows, and in this case, throttling occurs. Once the bucket is full, it will take time until new requests can be sent, as the rate of the leak maintains a constant. In the case of repricing feeds, the maximum rate at which feeds can be sent is 30 times per hour or once every two minutes. 

Why is this important for EU sellers?

Monitoring the repricing feeds for EU sellers is important because each marketplace has a different value to individual sellers. In my experience, the strongest marketplace is the U.K., generally followed by either Germany or France. Remember, each seller has one seller ID which covers the entirety of the EU, starting from the main five, ( U.K., France, Germany, Spain, Italy), and the newer, less developed, marketplaces such as, the Netherlands, Sweden, and  Poland. 

This means that an EU seller shares the quota and the number of feeds across all of the marketplaces they operate in. 

Logically speaking, this doesn’t make sense because not every marketplace generates the same revenue. Ultimately, the best logic would be to allocate more feeds to stronger marketplaces, such as the UK, Germany, and France, where sellers have the potential to make more money and where there’s more competition. The other marketplaces such as the Netherlands, Sweden, and Poland still need some attention, albeit significantly less since there is less competition, and those marketplaces make up significantly less revenue.

If you are selling on Amazon and repricing in the EU, reach out to your repricer and check if you can divide up those semi-scarce repricing feeds to best fit your strategy. Do what you can to get the most out of your repricer. 

I’m not talking about Amazon removing entire listings. No, this is a new kind of deactivation, one that is more temporary, but arguably more annoying. I’m talking about high pricing errors.

Price gouging aside, the most commonly observable – and solvable – reason for deactivations is due to a little known feature often referred to as the Amazon Price Guard.

In order to understand what the Amazon Price Guard is, it’s best to understand why it exists.

Many years ago, before Seller Snap was founded, there was a situation in which a third-party pricing tool mistakenly repriced a seller’s listings to one-penny. Amazon’s algorithm caught the mistake and managed to cancel a portion of the orders. But for many it was too late, the damage had been done and the seller incurred significant losses.

Amazon’s response was to create a Price Guard which acts as an upper and lower threshold to protect sellers from third-party software and user-errors.

Even though Seller Snap never reprices outside of your min/max range, in an effort to continually offer advice regarding best practices, Seller Snap encourages the use of this tool. The Amazon Price Guard is a last line of defense from user oversight, as an incorrectly calculated minimum price in a CSV import.

So, how can sellers actually ensure they are engaging in the best practices regarding the price guard?

Try AI repricing today to maximize your profit and avoid Amazon price wars.

No set-up required, simply turn repricing on and let the AI do all the work

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Firstly, min & max prices in your repricing software should be closely aligned and within your min & max prices in Seller Central – this way the repricer has some room to safely do its job.

Should an item become deactivated due to this issue, it can be fixed from within the Fix Pricing Alerts section of Seller Central.

Over time, many Seller Snap customers have indicated that they have never actually utilized the price guard – so we want to simplify this process.

Today, Seller Snap is announcing a user-activated solution that will push new min & max values from within the Seller Snap dashboard directly to Seller Central with a click of a button.

Deactivations due to pricing errors are somewhat inevitable. But we can take steps to help mitigate this issue and keep on selling.

If 2020 was the year of pricing errors, make 2021 the year of active listings.

Note: This article was first published on January 18, 2021, under the author’s LinkedIn account. 

Amazon does reassess their referral fees annually based on industry cost, seller feedback, and, of course, their bottom line.

On February 18, 2020, Amazon introduced changes to the Referral Fee Percentages. For 2021, Amazon released specific referral fee changes in three categories: Personal Computers, Full-Size Appliances, and Veterinary Diets. These changes in the referral fees will commence on June 1, 2021.

It is important to note that sellers pay either the per-item minimum referral fee OR the referral fee (as a percent), whichever is greater of these referral fees Amazon.

Minimum Amazon Referral Fees

The first change is the drop of the Applicable Minimum Referral Fee from $1 to $0.30 on most categories*.  This change of referral fee on Amazon is beneficial for those who are selling items in these select categories under $6.67.

*The $0.30 per item minimum referral fee does not include Collectible Cards products in the Toys & Games category.

Amazon Referral Fee 2021 by Category – Progressive Charges

In the following Amazon referral fee by category, the percentage charges are now progressive. This means there is a different fee on the portion of the price above a certain amount for a specific Amazon referral fee by category.

Personal Computers

Upon the implementation of the new referral fees for 2021, Amazon sellers should expect an 8% referral fee for the Personal Computers category. The 2% increase will help align the referral fee under the said category with other electronic device categories.

Full-Size Appliances

Amazon will be splitting the referral fees for the Appliances category. Full-Size Appliances will have an 8% referral fee, and Compact Appliances remain unchanged, which is 15% for the portion of the total sale price up to $300, and 8% for any portion of the total sales price above $300.

Veterinary Diets

This sub-category of pet products will be charging a 22% referral fee starting June 1, 2021. This supplemental increase of 7% will cover the maintenance of the veterinarian confirmation process for Veterinary Diets. Worth noting that for other pet products, the 15% referral fee remains unchanged for 2021.

Amazon Referral Fee 2020 by Category – Progressive Charges

Furniture (Including Outdoor Furniture)

The new referral fee update for outdoor furniture products will be reduced to 10% for the portion of the sales price for items above $200. This is a relatively huge cut from its normal percentage fee of 15%. 

Jewelry

Referral fee Amazon percentages were previously 20%. This will change to 20% for the portion of the sales price up to $250 and 5% for any portion of the sales price above $250.

For example: Take a $255 necklace. You will pay 20% on the first $250 which is $50. Plus 5% on the $5 above 250 which is $0.25. Total Referral Fee= $50.25

Pay Close Attention

This next change is where things get a little more complicated. Because the new referral fees are using a tiered system, there are some price ranges where you will get less money due to increased Amazon fees after a certain price point.

Health & Personal Care (including Personal Care Appliances)

Another consolidation of categories has been introduced with the referral fee updates of 2020. The personal care appliances category is now merged with the Health & Personal Care category.

Along with the consolidation, a  referral fee percentage change shall be observed by sellers. From the original 15%, referral fee for items with a total sales price of $10.00 or less is now 8%.

However, for products with $10 total sales under the consolidated category, the 15% referral fee is retained.

Grocery & Gourmet Food

Referral fee percentages will be 8% for products with a price up to $15.00 and 15% for products with a price above $15.00. The range where sellers should not sell is between $15.01 and $16.24.

Clothing & Accessories (including activewear)

Activewear’s referral fee will be similar to that of Clothing & Accessories at 17%.

Amazon Device Accessories

After being consolidated into the Amazon Device Accessories, Ring accessories will now have a 45% referral fee.

Shoes, Handbags & Sunglasses

For the updated 2020 referral fee of the Shoes, Handbags & Sunglasses category, Amazon has introduced a significant cut. What used to be an 18% referral fee has been reduced to 15% for items under such a category having a total sales price of more than $75.

With the tiered fees becoming more and more common, shouldn’t you be with a repricer that will do everything possible to make sure you get the most out of your listings when selling on Amazon? Along with identifying and repricing around these “No Sell Zones”, Seller Snap’s proprietary software maximizes your profits while maintaining your Buy Box share. As well as being a premium repricer, Seller Snap provides advanced analytics and business intelligence for your store. Try out Seller Snap’s AI Game Theory Repricer now for free!

What Is Amazon Professional Selling Plan and Individual Selling Plan?

Understanding the different Amazon seller plans is crucial for any would be Amazon seller. If you choose a Professional Selling Plan, there is a monthly Amazon seller subscription fee to pay, which costs $39.99 per month. An Individual Selling Plan is free, there is no Amazon seller subscription fee to worry about. However, there are “per-item fees”. Those that have an Individual Selling Plan are required to pay a $0.99 fee for each item sold.

There are no Amazon seller fees for those that have a Professional Selling Plan. Thus, it is crucial to get to know the said Amazon seller plans before totally venturing into the Amazon business.

Amazon’s Referral Fees:

There are also referral fees when using the Amazon platform and both selling plans require sellers to pay a fee for each item sold. In a way, the referral fee and the item fee for Individual Seller Plans make up for the lack of a monthly subscription. Amazon seller fees can differ per category and then on certain items within that category. Amazon’s Seller Central has a whole breakdown of each category and the prices associated. There are also some categories that require approval to sell in, this has to do with Amazon Gating. There are some categories that require certain products to only be sold by the Professional Selling Plan. This includes some products in luggage, shoes, art and some food items.

With the Individual Selling Plans, you do miss out on a few extras like offering gift wrapping and you are required to upload your listings manually. A point to note is that an Individual Selling Plan would only be beneficial for small sellers because of some of the item restrictions and the number of products you are able to sell. The Professional Selling Plan does not have restrictions on the number of products being sold.

What is Amazon Professional Selling Plan?

As we have already laid out, the benefits of a Professional Seller Plan can really add value to your business. If you are considered a “smaller” seller, the Professional Seller Plan would not be the right choice for you. For sellers who plan on selling around or over 40 items per month, the Professional Plan would be the right choice for you. Some of the other benefits that come along with the Professional Plan are the Amazon seller shipping rates.

With Amazon’s Professional Seller Plan, you have access to Amazon warehouses that would allow you to be an FBA (Fulfilled by Amazon) seller. In general, the company sets their Amazon seller shipping rates based on the product category and the shipping service that the buyer chooses. If you choose the FBA route, you are also charged a fulfillment storage fee, which is calculated by weight and amount of items. A note about the Buy Box here – Amazon generally favors FBA listings.

Amazon’s FBA Small & Light:

For Professional Amazon Sellers there is a program called, “FBA Small & Light”. This only applies to FBA sellers, but it is a perk of the Professional Seller Plan. Since Amazon charges a fulfillment fee for FBA sellers, which is based upon quantity and weight, it is good to know about FBA Small & Light service. This service is for sellers who sell small and lightweight items under $7.00 and store them in the Amazon warehouse. Amazon Small & Light helps reduce the cost of fulfilling small items. There are specific fulfillment centers for FBA Small & Light items.

To get a better understanding of the price differences for regular FBA and FBA Small & Light, go to Seller Central. There are also monthly storage fees for FBA sellers.

Some of the other benefits that come with having Amazon’s Professional Seller Plan are access to reports, the ability to run promotions, the access to being FBA, and the favorable shipping rates.

The takeaways from this post should help you understand which seller plan is right for you. The price differences are a factor, but selling more than 40 items a month will likely even out the cost for your Professional Seller Plan.

Once you have figured out which plan works best for you and take into account the Amazon fees, you’ll be ready to find a repricer that allows you to stay competitive and gain a higher share of the Buy Box.

In a bid to stay competitive with pricing, Amazon rolled out ‘Discount Provided by Amazon’, whereby Amazon cuts third-party seller prices and funds the discount.

Amazon Seller Central Repricer: What is SBA?

SBA allows Amazon to set product prices through its dynamic pricing engine while protecting seller margins with a guaranteed price. This is called, ‘Minimum Gross Proceeds’. In Amazon’s words, as stated in the invitation letter to third-party sellers:

“Sold by Amazon (SBA) provides a new, hands off the wheel selling experience for FBA listings that are designed to help sellers grow their business…”

This means that once you enroll any of your products to SBA, you have authorized Amazon the right to reprice the product. Once purchased by a customer, Amazon buys the product from you to sell to the customer. Pricing is in contrast with the usual FBA reprice approach.

You receive the actual sell price or the Minimum Gross Proceeds (MGP), whichever is higher. For instance, if the MGP of a particular SBA product is $25 and Amazon repriced and sold it for $20, you will be paid $25. This is the guaranteed price. If sold for more, for example, $28 – you receive the actual sell price, $28. Amazon determines eligible products’ MGP before product enrolment into SBA and re-evaluates MGP every six months based on the average sell price over that period.

Sellers decide which products are enrolled into SBA and can remove them at any time. Customers see enlisted SBA products as “Ships from and Sold by Amazon.com”, similar to products sold by Amazon retail. However, just like ‘Fulfilled by Amazon’, (FBA), listings and inventory management are still the responsibility of the seller.

The Difference between FBA and SBA

While one seems to be an extension of the other, FBA and SBA are different. FBA products are owned by the seller, but storage, packaging, delivery, and returns are fulfilled by Amazon. Whereas with SBA, Amazon owns the product. Thus, making FBA reprice unique from that of SBA.

How to Enroll Your Products in SBA Program

To enroll your products in SBA you have to register your account for the SBA program first. To do this, go to “Account Info” in your “Settings”. Click on the “Sold by Amazon” registration button as listed in “Your Services”. After registration, you can then go on to enroll your listings in SBA.

Once you register your account for the SBA program, Amazon automatically creates the “Sold by Amazon” tab in your Seller Central account. You can find it under your “Manage Inventory” tab. You will find all your eligible FBA listings with their MGP amounts under this “Sold by Amazon tab”, from which you can easily enroll and de-enroll SKUs of your choice anytime.

The Good, the Bad and the Ugly of SBA

The main reason Amazon rolled out SBA was to stay competitive and benefit the consumer, and to disrupt FBA reprice method. There are already concerns as to how MGP will be determined and what type of products will be accepted.

If your goal is to sell-out inventory, SBA may be the most effective fulfillment method for you. However, SBA is not the best service for brand owners who sell on Amazon and on other marketplaces.

SBA seemingly can and will affect the ability for brands to control pricing and remain competitive. Therefore, using an Amazon Seller Central Repricer will allow you to have more control over this. Amazon repricer Seller Central is designed to help sellers with their pricing approach.

Aside from the loss of control over pricing, another SBA limitation is that you cannot run sponsored products or lightning deals on Amazon SBA at this time. That could, however, change in the future, as well as other Amazon repricer Seller Central rules.

Your BlackFriday Repricing on Amazon Strategy is a technique that can be applied throughout the year, not only during the holiday season.

Adobe Analytics reported that 2018 BlackFriday sales raked in about $6.22 millions in online sales, the highest ever witnessed, with Amazon grossing the chunk of it. This makes sense considering how much effort, energy and marketing Amazon throws behind this massive shopping day. Your BlackFriday Repricing on Amazon Strategy can be of more value to you and your store than your regular day to day repricing. .

On BlackFridays, pricing moves by competitors are always fierce – it’s a street fight. You do not have the luxury to stick to your ‘less $x from least competitors’ price rule’ repricing strategy. With multiples of products to push at a good profit margin you need to create a strong repricing. 

Setting the Best Repricing Strategy for BlackFriday Shopping Spree

BlackFriday Pricing Based on Competitors’ Pricing Behavior (not Just the Lowest Price)

BlackFridays are usually characterized by sellers who are aggressively competing for the Amazon BuyBox. Sellers will try to come up with the most competitive pricing they can, but you do not want to just blindly lower your prices in order to stay in the game.  By just lowering your prices you will inevitably end up in the dreaded ‘price war’ where you either end up losing the buy box or sacrificing most of your profit margin.  In order to avoid this ‘price war’ you can take a more strategic approach that would  take your competitor’s overall behavior into consideration and use it to outsmart them.

An example of this more strategic approach would be when a competitor is exhibiting behavior that shows they’re trying to match your price,  instead of  going on the offensive with a cuts in your price, you could increase your price, and stay put at that price. You will end up sharing the buy box with such a competitor at a higher price. Any other approach in such a situation will cost you the buy box or lead to sharing it at a lower price.

In order to monitor your competitors’ pricing behavior for multiple products you need a little more than elbow grease. Your best option is to use a repricing tool. Leading sellers use Amazon Repricing tools to achieve this. A survey done by BigCommerce reports that “60% of high-grossing Amazon sellers (with revenue of $2.5M – $10M) use one (repricer), which is a good indicator of their importance”. 

Monitoring your competitors’ prices is one way to use your repricer, and in cases where you have a very aggressive competitor who is using the ‘less, say $0.05 from the lowest FBA price’ pricing approach to match the lowest FBA price. Your algorithmic repricing tool like SellerSnap, is able to  quickly detect this behavior and adjust your prices accordingly.

Using its A.I capability, SellerSnap mirrors the competitor’s behavior in cases like these and reduces your price automatically until it reaches a reset point and then goes back to the maximum while your competitor raises their price or runs out of stock. This cycle eventually allows you to hold greater shares of the BuyBox (although you might lose some in the waiting window) at a higher profit margin.

Take a Repricing Clue from Your Inventory and Sales Data

Things happen fast on BlackFriday, but you  cannot forget to look into your inventory and sales analytics data during this hectic time. You can uncover valuable insights from this data to reprice your products for more sales and maximum profit.  Tools like SellerSnap automatically collects this data, uses a business intelligence algorithm to interpret it, and give you actionable insights on each SKU, in real-time.

For instance, in a case where a new SKU on your FBA listings gets massive sales just as it hits the warehouse, you might need to check that you’re not pricing  too low. An excellent repricing tool with a robust analytics system will help make sure you don’t miss out on the perfect opportunities to maximize your profits.

Reprice to Win the War, Not the Battle

The euphoria that comes with BlackFriday lasts more than just that one glorious Friday. The day before and the day after BlackFriday are known to produce tremendous sales opportunities as well as BlacFriday. A lot of fast-selling products will be out of stock the day after BlackFriday with itching buyers. So, you don’t have to race yourself to the bottom.

BlackFriday comes with undoubtedly massive sales opportunities as well as an equivalent amount of madness. This can create a sort of ‘blinders on’ selling experience, where the short-term is all that the seller can think about. So, while repricing on BlackFriday, take a chill pill and optimize for both short and long-term. With the rising FBA fixed costs, protecting your margins is just as crucial as making quick competitive sales.

You should map out which of your products you will optimize pricing for in the long-term and those for the short-term. SellerSnap allows you to take control of your repricing strategy using either its A.I repricing feature and allowing the A.I to run on its own with your min and max prices or you can use the rule-based repricing feature to fine-tune individual listings to achieve your set business goals.

Invest in Some Smart Website Updates

A user-friendly, well-designed website should be at the heart of any small business tech plan. So if yours could use some work, think about investing in a freelance PHP developer to help with updates. If you’re unfamiliar with coding, know that PHP is the most common language used for website coding, including sites that use WordPress. PHP developers help small businesses with the often-complicated back-end development that controls websites, and they also have the expertise to craft a powerful website that is still easy for visitors to use. Plus, you can request that your freelance PHP developer build an easily updated interface into your new site, so you and your staff can make updates without using a developer. Even if your selling platform is on Amazon, you can still provide a link to your business website to further build your reputation as a reputable and trustworthy seller.

 As you search for a freelancer for your coding needs, look for pros who are fully versed in this technology stack and who also use test suites and project management tools. You should also explain any detailed project needs, like adding secure credit card processing to your site or using a dedicated business email in contact forms, both of which can build trust with online customers.

Switch to Smartphones for Business Needs

Business owners need a reliable way to communicate with customers and manage their small businesses, even on the go. That’s why small business owners should invest in a reliable smartphone for themselves and any applicable staff members, instead of looking for a phone with bells and whistles they don’t need. The right smartphones can provide the power and tech businesses need to be successful and allow users to chat via video with customers, receive instant email notifications, manage mobile sites (such as your Amazon marketplace) and access helpful apps that make it easier to manage a small business. There are many smartphone options to choose from, so do some homework and compare models to figure out which one will suit your business needs. Select a data plan that offers the features and price you need as well. As you browse through new phones, also research some apps that may be helpful for your small business. For example, low-cost project management apps can increase productivity, while instant messaging apps can provide fast and secure employee communications.

Make Social Media Marketing a Tech Priority

A custom website, mobile-friendly options, and smartphone tools can be wise tech investments for your small business. If you want a way to connect all of those updates together and connect with more potential customers outside of Amazon, though, you have to invest in your social media presence. More than just a social outlet, social media can increase online traffic for your new website, generate contact leads to follow up on using your new smartphone, and help promote your brand, content and business. Social media is such a powerful marketing resource for your small business, and the costs to attract customers and boost sales is typically low, and sometimes even free. In addition to managing marketing and connections on social media, you should also develop a social media crisis plan as part of your overall tech strategy, so that you can prevent potential missteps from impacting your brand’s reputation and profits.

 When it comes to investing in tech for your small business, there are a lot of options to choose from, so make sure you invest wisely. Look for new tech that is free, low-cost or offers a lot of ROI to make the most of your time, effort and money. Most importantly, look for tech that will actually support you, your staff and the success of your business.