What are some of the most profitable but challenging categories on Amazon?

Viewed 5

As a new seller, I want to avoid these categories

1 Answers

In the Amazon seller community, there are some categories that are known as the most challenging. There are various challenges and problems in these categories, and sellers need to pay more attention and efforts. As follows:

1.3C Electronics and small household appliances

The 3C electronics and small appliances category has long been one of the most competitive and expensive to operate on Amazon. Products under this category, such as rice cookers, vacuum cleaners, etc. have skyrocketed in demand during the mask period, but they are also accompanied by high operating costs and fierce competition challenges.

2.Beauty categories

On the surface, the beauty category looks high in demand, rich in products and good profits, but in fact, it is difficult for new sellers to make money. This is because products that come into direct contact with human skin need to be approved by the FDA before they can be marketed, setting a certain threshold for entry. In spite of this, beauty care products as a high demand, high profit category still attracted the attention of many sellers.

3.Clothing category

The clothing and shoes category is also a best-selling category on Amazon, but there are problems with size differences and high return rates. Sellers need to prepare a large number of SKUs to meet the needs of different consumers, resulting in inventory overhang and excessive capital utilization. In addition, changing fashion trends have added to operational challenges.

4.Category of toys

The toy category is a huge market, and the probability of explosion is high, but it is also accompanied by huge risks. Sudden infringement complaints can lead to the removal of products or even the closure of stores, sellers may also face frozen funds or compensation issues. This makes making toys a risky business.

Starting Amazon sellers are advised to avoid these categories