Introduction Some Amazon categories offer immense opportunity, while others present costly challenges.This report identifies thefive bestandfive worstcategories to sell in on Amazon, using adata-driven approach that evaluates profitability, competition, demand trends, and overallmarket visibility. Understanding these dynamics is crucial for brands looking to maximize theirperformance on Amazon. Table of Contents 3What makes a winning Amazon category? 6Best Amazon Categories: Market Trends & Tailored Strategies 27Worst Amazon Categories: Market Trends & Tailored Strategies 48About the Report CHAPTER 1 What makes awinning Amazoncategory? The top categories on Amazon have a balance ofopportunity and manageability – strong demand,sustainable pricing, and moderate competition. Amazon Category Dynamics Sellers per Category and Year-over-Year Sales Trends The categories in this report wereassessed based on four core criteria: Profitability Cost & Competition High cost-per-click (CPC) and saturated markets can make it difficult tocompete, while categories with lower ad costs and reasonable competitiongenerate higher ROI. Categories with high margins, strong average sale prices, and consistentrevenue growth offer the greatest opportunities for sustainable success. Data used to assess the profitability of each category includes responses from Jungle Scout’s 2025 State ofthe Amazon Seller survey, in which more than 1,000 brands were asked about average margins and year-over-year profitability fluctuations on Amazon. Data used to assess the advertising costs of each category includes responses from Jungle Scout’s 2025 Stateof the Amazon Seller survey, in which more than 1,000 brands were asked about average cost-per-click in theirprimary product categories, as well as Jungle Scout Cobalt data from 10k+ PPC campaigns. Market Saturation Consumer Demand Categories with rising consumer interest and stable year-over-year salesgrowth signal strong potential for long-term success. Fewer competing sellers means more opportunities to capture marketshare, whereas oversaturated categories make it hard to stand out. Data used to assess market saturation in each category includes responses from Jungle Scout’s 2025 Stateof the Amazon Seller survey, in which more than 1,000 brands were asked to identify their primary sellingcategory on Amazon, as well as sub-category level insights from Jungle Scout Cobalt. Data used to assess consumer demand in each category includes responses from Jungle Scout’s 2025Consumer Trends survey, in which approximately 1,000 U.S. consumers were asked about anticipatedspending habits in 2025, as well as sales data from Amazon Category Insights and Jungle Scout Cloud. CHAPTER 2 Best AmazonCategories This chapter identifies the five best categories to sell in on Amazon based onstrong revenue and unit sales growth, moderate to low competition, manageableadvertising costs, and sustainable profit margins: High margins and moderate competition.Appliances Low ad costs and growing demand.Patio, Lawn & Garden Steady demand and pricing flexibility.Automotive Rapid sales growth and high consumer spending.Beauty & Personal Care Large shopper base and stable pricing.Home & Kitchen Appliances MARKET OPPORTUNITY & COMPETITIVE LANDSCAPE What makes Appliances a profitable categoryfor brands? 5% of sellers identifyAppliances as theirprimary productcategory on Amazon. Amazon Market Trends* YoY Unit Sales Trend+16% YoY Revenue Trend+16% Advertising costs in Appliances are manageable. A majority of brands pay between $1.00 - $6.00 per clickon PPC campaigns, and nearly 20% pay less than $0.50. Higher price points can justify ad spend moreeasily, and balanced CPCs help brands maintain stronger profit margins. A balance of strong margins,moderate competition, andsteady consumer interestmake Appliances a resilient,high-opportunity category. Average Cost-per-Click: PPC Campaigns in Amazon’s Appliances Category** Percentages reflect number of brands that report average CPC within the specified range. CONSUMER DEMAND How are consumers prioritizing Appliances in 2025? Unit sales and revenue trends show minimal seasonality and steady growth, making this a stable category for long-term investment. Brands should focus onmaintaining a consistent presence with evergreen products while leveraging promotional windows for additional gains. PRICING & PROFITABILITY How profitable are Appliance brands onAmazon? 90% Price Band Distribution in Amazon’s Appliances Category* Almost 90% of brandsin this category sawprofits increase in2024, with nearly one-quarter reporting profitincreases of 50% ormore. Nearly one-quarter of appliance brands price products above $100 on Amazon.The Appliances categoryoffers one of the most profitable opportunities on Amazon, with high average sale prices and consistentdemand throughout the year. Unlike seasonal categories, brands selling appliances benefit fromyear-