What are the factors that determine a top-selling category on Amazon?

Amazon is an ideal platform for those who want to sell their items in international markets to generate high profits. Any business that is new to the e-commerce website should know the factors that determine a top-selling category. This will help a lot to accomplish goals with high success rates. Another thing is that a business can ensure more margins while selling its products on Amazon.

8 Things that decide a top selling category on Amazon

  1. Sales

A business should evaluate the average monthly sales of the topmost categories on Amazon which help gain more ideas. It is not about the monthly sales that matter but also the price of a product. For instance, the cost of a video game is expensive when compared to musical instruments.

  1. Selling experience

Some top categories on Amazon require a high-selling experience when compared to others to achieve better results. They include home improvement, toys, musical instruments, apps, games, etc. A business should know the categories that don’t require a high-selling experience while selling products on Amazon.

  1. Profitability

Profitability is an important factor that determines the best-selling categories on Amazonthat needs proper research. A business should calculate the profit margin based on the cost of the items and other related expenses. The average profit margin on the Amazon platform is 17% to 25 %. However, less popular categories allow a business to earn more profits than popular categories. The best idea to increase the profitability on the platform is to find merchandise with high demand and low competition.

4.Fulfillment method

Fulfillment by Amazon (FBA) is a method used by every category while selling products. On the other hand, there are specific categories that prefer theFulfillment by Merchant (FBM) method. Many popular categories sell items under FBM to earn high revenues. Besides this, the Amazon platform allows a business to build trust among customers in the market when it sells products under FBA.

  1. Business model

A business model is another important factor that determines the success of a category. This is because Amazon offers various business models for businesses and they should choose the right one accordingly. Some of them include retail arbitrage, wholesaling, private label, dropshipping, online arbitrage, etc.

  1. Keyword ranking

Keyword ranking also determines the best category on Amazon because thetopmost categories use the right keywords to attract more customers. A business should give more importance to keyword research because it provides to select keywords that work well for its products that help reach customers quickly.

  1. Ratings and reviews

Ratings and reviews are two important factors that make a category popularamong customers. Top categories will always have high-quality reviews that increase the reputation of products in the market. A new business that wants to sell products on Amazon should monitor them to move in the right direction.

  1. Conversion rates

Amazon promotes highly converting products and ranks them high on search pages. It even allows a business to post free ads on Facebook and other platforms to get the desired outputs.