Amazon provides a huge opportunity for many small to medium-sized sellers to reach a broader market and grow their businesses given little resources. And with that, it continues to scale massively, offering a variety of products to consumers. The increasing competition among sellers offering similar products grounds the prices, resulting in happier customers.

That may daunt some first-time sellers from joining the platform, in the fear that their seasoned counterparts may just crush them in no time or they will be left with no profits at all. But in fact, the algorithm behind Amazon is designed to provide everyone the same opportunities – you just have to work on it.

One of the major things you have to consider before diving into Amazon selling is your product. It has to fit several criteria for you to remain competitive and profitable. Though basically, you can almost sell anything on Amazon, if you want to maximize your opportunity, lessen your risks, and scale faster, you have to stay within the bounds.

Here are the best product categories that will be most profitable in 2023:

Health and Personal Care Items

Considered essentials, these items will remain profitable in 2023. Most of the items under this category are also consumables, which means you have the opportunity to get steady sales and earn loyal customers.

When it comes to value proposition, you can constantly introduce something new to your customers by playing around with profiles like color themes, scents, and flavors. Yet you should still retain the staple or best-seller ones that have the most following.

Tech Products and Accessories

Technology gets everything more fast-paced, including its own line of products. Gadgets and electronic accessories constantly offer something new, fresh, and more advanced, leaving a lot of opportunities on the table.

The thing about tech products and accessories is that they fit the Amazon FBA limitations seamlessly. Thus, you have a lot of wiggle room when it comes to profit. They are in demand, mostly cheap and disposable.

Beauty and Skincare Products

It’s undeniable that consumers put more money into things that not only convenience them but also make them feel and look good. More so, the advent of social media encouraged this behavior more.

However, expect some tight, cut-throat competition in this niche. But because of the consumer demand, many sellers or players can take part in the pie. Just pay attention to the trends and target a specific audience you can specialize in to focus on their fast-evolving needs. Work with plenty of attractive creatives and enticing videos, viral marketing, and influencer marketing to expand or scale your customer base.

Home and Kitchen Appliances

Home and kitchen appliances remain a strong niche, given that most of us are becoming accustomed to domesticated living.

It is also a complete package that holistically appeals to a wide customer base by bringing convenience, luxury, and improvement in our daily lives.

There are also plenty of options for products you can sell under this category, giving you a lot of items in your inventory.

Clothing and Fashion Accessories

Just like beauty and personal care items, this category provides plenty of opportunities for retailers and brands on the platform. There’s quite room for variations of a single product, innovation of existing products, as well as introduction of new trends.

However, you must be ready for some fierce competition here. You have the choice to go head-on with known brands or go cheap for bulk orders. The good thing here is trends come and go, and every seller returns to the same board once in a while. That is the perfect opportunity to work on some competitive advantage. Creativity and ingenuity on your end can definitely take you to new heights.

Pet Supplies

We are seeing tremendous growth in pet supplies this 2023. The competition here is not so tight, but the demand is slowly increasing at a faster pace. Now is the time to introduce a brand or offer something new for pet lovers to consume or enjoy. In fact, pet supplies are almost always visible on lists like Movers and Shakers and Best Sellers.

Fitness and Outdoor Equipment

The trend remains on fitness-savvy people looking for conveniences in terms of getting fit, in the confines of their homes. Technology has also paved the way for innovations in this category. For example, you can now find portable versions of used-to-be bulk fitness equipment.

Grocery and Gourmet Food

These staples and consumables have been experiencing a steadily growing demand, wherein e-commerce paved a way for consumers from all over the world to experience other cultures through food.

Innovation also allowed food to be stored in more shipping-friendly containers and transported with less risk of spoilage and/or damage.

Baby Products

Parents’ tastes are becoming more sophisticated nowadays, also because many are staying more at home to look after the kids. And as Moms mostly juggle working from home and taking care of everyone else, convenience is one of the major influencing factors when purchasing goods for babies.

Baby products are like a whole new e-commerce business itself, with its own line of clothes, foods, supplies, furniture, and gadgets. There are plenty of opportunities for sellers to explore here, therefore, making it a profitable category to look forward to in 2023.

Office and School Supplies

Most items under this category are transportable and within the limits of Amazon FBA, making them less likely to incur high shipping costs. Office and school supplies offer a wide array of choices that are also versatile as gifts for anyone. They are also consumable, may come in variations, and make work more convenient.

Factors Affecting Your Profitability at Amazon

Profits come after deducting all the costs, and the same principle applies to Amazon.

Amazon, due to its massive scale, is known for its competitive environment, which most of the time, drives the prices down. Therefore as a seller, you have to sell a product that is not just appealing to customers but can still make your business profitable.

One of the best things about selling online is that in general, you have fewer costs to take care of. For example, you don’t need to pay for or rent a physical store, maintain a lot of employees, or use sophisticated software that may require a certain learning curve on your end. Almost everything will be taken care of by Amazon like logistics, storage, order fulfillment, shipping, and marketing and advertising.

Now, you are left to focus on choosing the best product to sell given the nature of the platform. Aside from selling a product that either fills the need or solves a problem, you also have to consider these factors:

FBA Costs

There are various fees inclusive of FBA fees, but, Amazon will do the calculation for you and bill you accordingly.

To simplify things, you are basically paying for the space your product takes up in their storage facility and courier vehicle, the time they will store your product in the warehouse, as well as for the use of their system.

Thus, you must understand how these fees are computed, especially the variable ones. This can help you make the necessary adjustments or forecast expenses that are important when making business decisions.

Size and Weight of the Product

These are major considerations that will also fall on FBA fees. As you see, storage and shipping fees are computed based on your product’s size and weight, and obviously, the higher these numbers are, the more expensive the fees become.

Amazon categorizes products in tiers to determine the fees you have to pay. You have to understand where your products will fall into any of these.

However, it pays to note that oversized items are charged a little less when it comes to storage fees. The logical explanation here is that they are easier to store and stack, compared to smaller items that need bins, shelves, or drawers.

Time of the Year

This can also fall under the premises of FBA fees, but it becomes more noteworthy if you have a seasonal product.

Storage fees increase during certain times of the year called peak season. This falls from October to December. The rest of the months are considered off-peak.

Therefore, consider products that are still saleable even in off-peak seasons. Or, be creative in marketing these items, or find a way to dispose of them by bundling or by giving discounts.


You have to find products that are resilient to the bumps and falls inevitable with handling and shipping. This is to ensure that they arrive in their best condition to avoid damage, returns, and dissatisfied customers.

Another aspect here to consider as well is the quality of the product. As much as possible, source from reliable suppliers that guarantees your product’s endurance to the abovementioned factors.

How to Make it Big?

Though these top-selling products are foreseen to be the most profitable in 2023, you should not limit your success in the platform with them. Instead, you may diversify your inventory to offer more to your customers. With the right tips and strategies, you can make your product stand out.

Remember that the best categories and products that sell on Amazon are ever-changing, and as the needs of customers in general. Therefore, devote as much time to researching the product you’ll sell and strategize accordingly. Consider your passion and purpose first and make sure your business adds value to your customers’ lives and solves their problems. Sales and profits will surely follow.

To hasten your growth and maximize your opportunities in Amazon, you can harness various tools and services from providers like Signalytics. Contact us to know more about how we can help you in any phase of your Amazon business today.

Download Our Listing Optimization Operating System

Increase your conversion rate up to 18.2% or more by implementing our agency's internal operating system.

You have Successfully Subscribed!