Which Categories Will Make Money On Amazon In 2023? These Tracks Are Promising!

On the eighth day of the first lunar month, construction begins! I believe that many sellers have started their overseas journey in the new year.

In the past year, due to the repeated epidemics and economic downturn, cross-border people have not been happy. In the new year, with the relaxation of domestic epidemic prevention, some sellers predict that the prospects will definitely be better than 2022, and some people also compare 2023 to a year of spring breeze.

So, where is the new trend in the cross-border e-commerce industry this year? What products will become popular on Amazon? This should be the most discussed issue among sellers since the beginning of the year.

Amazon in 2023,

Which categories will be popular?

Anyone who has worked on Amazon knows an industry saying: seven points for product selection and three points for operation. Especially now that platform policies are becoming increasingly tight, product selection is becoming increasingly important if you want to create a hit product.

At the beginning of the new year, many sellers have begun to plan their product lines. What new opportunities will Amazon have in 2023? What kind of products will sell well? Recently, a seller initiated a discussion on the forum. Let’s take a look at what everyone thinks about this issue.

Some sellers use the changes in the epidemic as an entry point and believe that there are two major consumer categories with good market prospects: 1. The health industry will continue to heat up, and consumers pay more attention to personal health, personal care, and environmental health; 2. The global epidemic is completely relaxed In the future, population mobility will accelerate, which will drive industries such as outdoor and tourism.

Based on this, the seller believes that the following categories will become popular on the Amazon platform this year:

1. Personal care and household products: eye, ear, mouth, nose and tongue care products 2. Medical equipment and instruments: respiratory products, health monitoring products 3. Outdoor sports products 4. Household electronic products

However, the above views quickly aroused doubts from colleagues. "The foreign epidemic situation has been released a long time ago, and the foreign health market has passed its window period; the same is true for the outdoor and tourism markets; and the home electronics market will be affected by the foreign economy to some extent." Environmental impact,” one seller countered.

At present, inflation is serious in European and American countries. Some sellers believe that this is also a breakthrough. They can choose some categories with high average prices, screen out the core needs of the products, and create a low-priced product with stable quality to hit the market, which will have greater market prospects. In addition, if the seller wants to open up new categories, it is recommended to focus on products that are just in demand and easy to differentiate, so as to avoid price wars.

Chasing the wind, how to avoid overturning?

In the eyes of some industry veterans, there is no such thing as "which category sells better" on Amazon. All categories are becoming saturated. Amazon sellers must combine industry resources and financial strength when selecting products. If they blindly follow the trend, the probability of overturning is relatively high according to the current industry environment.

Some sellers will question this when they see this. Could it be that they have already smelled the wind and are not making any money? Staring at others going off alone? After all, one more product means more opportunity.

Looking at the Amazon industry, if sellers want to chase the trend, there is a major premise: the trend appears in the category you are deeply involved in and has a relative advantage. In this way, you can more easily grasp the trend and control the risk of new innovation within your control. At the same time, it also needs to be viewed in conjunction with the market. If the feedback data is not good, you need to be cautious. As the saying goes, it is better to do something new than to do something old, as the risk is smaller and the probability of success is higher.

Of course, node products are also considered, but it is necessary to have a good market insight and plan in advance.

Three major new species going overseas are favored by experts

In an environment where the global economy has not yet recovered, small and medium-sized sellers must not blindly expand into new categories this year. Before exploring new markets, it is still very necessary to learn from the experience of big sellers in the industry and understand the overseas segmentation tracks that the investment circle is concerned about.

Not long ago, the domestic self-media "Shen Ran" communicated with a number of investors in the technology and consumer fields on the "long-term trend" of overseas expansion this year. Their core logic is "advantage spillover" and they are optimistic about China's advantages. Categories, tools, and models are copied overseas. Regarding the cross-border e-commerce industry in 2023, based on the views of investors, we have summarized three major new overseas species:

1. Intelligent home appliances and consumer robots

In fact, starting from 2021, the overseas home appliance market will show a trend of intelligence. "Since the second half of 2022, the explosion of new segmented consumer robots and pet care markets (including automatic cat litter boxes, pet groomers, etc.) has verified this. This popularity will continue until 2023." Investors judged.

Under this trend, consumer robots are a more popular category. Judging from investment and financing events in 2022, robots have extended from the floor to more diverse scenarios, such as lawn mowing, pool cleaning, home patrols, etc.

2. Consumer-grade energy storage

Taking a closer look at the cross-border e-commerce market in 2022, consumer-grade energy storage products are one of the hottest-selling products. EcoFlow, a well-known Chinese brand, launched a US$399 energy storage product on August 30, 2022, with sales reaching 1,298 units in a single month.

A consumer-grade energy storage product from EcoFlow – Screenshot from Amazon website

It is reported that China is the world's largest manufacturer of portable energy storage equipment, accounting for more than 90% of production and shipments. With the support of a strong domestic supply chain, this segmented overseas market has given birth to well-known overseas brands such as Jackery, EcoFlow and BLUETTI. Even Anker Innovation, a well-known public seller, has begun to enter the outdoor energy storage market. Last year, it launched the first outdoor power supply product with a power of more than 500Wh – Anker 757.

3. E-bike

E-bike, that is, an electric-assisted bicycle (not the "two-wheeled electric vehicle" that can be seen everywhere in China). In the context of the post-epidemic era, the "short-distance + outdoor" life scenes of foreign consumers have soared, and the E-bike market has become increasingly popular. In the eyes of investors, E-bike has become a new outlet for Chinese sellers to go overseas. Recently, TENWAYS, the leading brand in the E-bike segment, completed a RMB 300 million Series A financing.

Customs data shows that from January to November 2022, China's electric bicycle exports were 33.5 billion yuan, a year-on-year increase of 6.7%. In the eyes of industry veterans, E-bike still has a lot of room for growth. It is reported that the penetration rate of E-bike in the United States will reach 4% in 2021, while in Europe it is 20%.

For small and medium-sized sellers, many products in the three major market segments mentioned above have high customer unit prices and have certain technical thresholds. It is not easy to enter these markets. However, small sellers also have their own tricks, such as revamping and optimizing existing products and developing private models. Many sellers have made good profits and lived a comfortable life on this path.

The new cross-border outlets in 2023 will certainly not stop there. As the living environment and economic situation change, consumer demands will also change, and new outlets will be born.

For sellers, chasing new trends must be based on existing resources or categories with relatively certain advantages, and cultivate deeply and intensively, so that they can "take off".