Originally published on December 12, 2018, updated August 16, 2024
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Amazon customers love the online retailer for many reasons, including the ability to scan through thousands of unbiased reviews before making a purchase. They may not realize, however, that their experience could actually be shaped by the type of product they intend to buy.
As a seller, it’s important to understand how Amazon categories work in order to maintain your competitive edge. Keep reading to dig into this topic.
Identifying an item's category can be time-consuming, especially if you have a list of products you're thinking about sourcing.
Choosing the correct Amazon category helps make it easier for shoppers to find your product in Amazon's vast catalog. Proper categorization is crucial.
As you may have already guessed, products with good reviews perform better in the Amazon search algorithm and, therefore, benefit from greater visibility. If these items earn a higher ranking simply because they belong to certain categories, this can make a huge difference in your sales and success.
Our Silicon Valley-based friend, Max Woolf, a data scientist, conducted research by looking at more than 80 million reviews and 20 million reviewers. This is what he found:
The top-performing categories on Amazon (based on average product ratings):
These are the Amazon product categories with the lowest average ratings:
While you certainly shouldn’t try to “game the system,” knowing whether a product is in one of the top-performing categories can be incredibly valuable, especially when it comes to making informed stocking and inventory management decisions.
More than anything, Amazon wants its customers to be satisfied with their online shopping experience. To gain trust and give buyers confidence, Amazon requires that merchants request approval to sell within specific categories. If permission is granted, those sellers may be subjected to additional fees and performance checks, among other things.
It doesn’t end there, of course. Even if your chosen item is not in a category that requires approval, you may still need permission to sell the product itself. These restricted items may include hoverboards, personal safety items, and jewelry.
Additionally, you must become familiar with Amazon’s list of Restricted Products. Not only do you want to avoid putting your status as a seller at risk, but you also don’t want to invest a lot of money into stocking a product that you can’t even sell.
You want your business to be profitable and thriving, so why risk making important business decisions without the right intel? We know that approximately 67% of Amazon merchants conduct competitive and market data research before stocking a new item.
While this can help you avoid entering a tough product category, this type of research can be time-consuming. But it's an important step when it comes to protecting your Amazon business!
After you've created your listings, software such as SellerPulse by eComEngine can help you grow your business with inventory planning insights, listing alerts, returns reports, and much more. Try it free today!
Originally published on December 12, 2018, updated August 16, 2024
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.
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