Data-driven profitability rankings for Amazon product categories. Electronics and Appliances lead at 79/100, while Clothing struggles with thin margins. Analysis of 855 products reveals which niches offer the best opportunity.
Jan 2nd, 2026
What are the most profitable Amazon categories in 2026? We looked at 855 products across 11 categories to find out. Some categories are gold mines. Others are traps. Here's what the data shows, and what most sellers miss when picking products to sell.
Electronics and Appliances tie for #1 at 79/100. Why? Higher prices ($35-46 on average) mean more profit per sale. Simple math.
Clothing is a trap. It sells a lot (33/40 velocity score), but you barely make money. The margin score is just 23/40. Too much competition, prices too low.
Automotive is the sleeper pick. Score: 74/100. Good margins (34/40) and way less competition than Electronics. Most sellers skip it. That's the opportunity.
Play with the data yourself. Click "Market Map" to see categories sized by opportunity. Click "Quadrant" to see profit vs. competition on a chart.
We score each category on three things: how much profit you can make (Margin), how fast things sell (Velocity), and how crowded it is (Saturation). Here's the full list:
| Rank | Category | Score | Margin | Velocity | Saturation |
|---|---|---|---|---|---|
| 1 | Electronics | 79/100 | 37/40 | 36/40 | 6/20 |
| 2 | Appliances | 79/100 | 36/40 | 36/40 | 7/20 |
| 3 | Automotive | 74/100 | 34/40 | 29/40 | 10/20 |
| 4 | Office | 73/100 | 28/40 | 34/40 | 11/20 |
| 5 | Home & Kitchen | 73/100 | 29/40 | 38/40 | 6/20 |
| 6 | Beauty & Personal Care | 72/100 | 28/40 | 37/40 | 7/20 |
| 7 | Sports & Outdoors | 71/100 | 26/40 | 35/40 | 10/20 |
| 8 | Toys & Games | 71/100 | 23/40 | 36/40 | 11/20 |
| 9 | Baby & Nursery | 70/100 | 26/40 | 30/40 | 14/20 |
| 10 | Pet Supplies | 67/100 | 27/40 | 35/40 | 5/20 |
| 11 | Clothing Shoes & Jewelry | 63/100 | 23/40 | 33/40 | 7/20 |
Electronics has the highest margin score (37/40). The average product costs $46. Yes, there's competition. But the profit per sale makes it worth it.
Why it works: More expensive products = more dollars in your pocket. A 30% cut of $46 is $13.80. A 30% cut of $15 is just $4.50. Big difference.
Automotive scores 74/100. Third-best margins (34/40) and way less crowded than Electronics. Average price: $48.61. Good money per sale.
Why people skip it: They think you need to know about cars. You don't. Phone mounts, seat covers, air fresheners. Basic stuff sells great. And fewer sellers means less fighting for buyers.
Clothing is dead last. Yes, stuff sells fast (33/40 velocity). But the profit? Terrible. Margin score: 23/40, the worst. Prices hover around $20. Everyone and their mom sells clothes.
The trap: New sellers see lots of sales and think "easy money." Nope. You'd need to sell 3x more clothes to make what one Electronics sale makes. Not worth it.
Each category gets up to 100 points. Here's how:
How much can you make per sale? Higher-priced items = more profit.
How fast does stuff sell? Fast sellers = proven demand.
How crowded is it? Less competition = higher score.
We look at the top 20% of products in each category and average their scores. This shows you the best opportunities, not the duds.
Stick to categories scoring 70+. Look for products priced $25 or more. That's where the money is. Need more help? Check out our guide on finding winning products.
Try Automotive or Office. Both score 73-74 with less competition than Electronics. Easier to get your first sales and reviews.
If you're stuck in Clothing or Pet Supplies, add some Electronics or Appliances products. Better margins will boost your overall profit. Here's more on maximizing your margins.
Run a blog or website? You can add this chart to your own site for free. Your readers get useful data. You get fresh content. Win-win.
Get the Embed Code
Electronics and Appliances. Both score 79/100. Electronics wins on margins because products cost more ($46 average).
Clothing. It's last place at 63/100. Lots of sales but tiny profits. Pet Supplies (67/100) is also tough. Too crowded.
We score three things: Margin (can you make money?), Velocity (does it sell?), and Saturation (how crowded?). Anything 70+ is solid.
The scores reflect current Amazon data. They change as the market changes.
Yep, it's free. Grab the code from the profitability index page.
We pull real data from Amazon:
We look at category-level trends, not specific product picks.
Questions? Check out the full tool at productlair.com/profitability/amazon.
Data from 500+ top Shopify stores reveals the exact apps driving revenue. Klaviyo dominates email. Rebuy increases AOV 20-30%. Here is the tech stack that separates 7-figure stores from the rest.
Discover the exact costs of starting a dropshipping business in 2025, from essential tools to marketing budgets. Learn how much money you need for successful dropshipping.
Looking for better options than Dropship.io? Check out these 5 great tools that help you find winning products for your dropshipping store. See which one fits your needs best.
