The more articles about selling on Amazon you read, the better you will understand the importance of categorizing products correctly. Choosing the right categories not only increases product visibility to customers but can also reduce Amazon fees or help avoid additional Amazon inspections and required investigations, certifications, or documentation preparation. Here’s a brief overview of Amazon product categories and how to select the most appropriate ones.
The abundance of categories – beneficial for both the buyer and the seller
Every seller is also a buyer: each of us shops online, whether it’s on Amazon or any other e-commerce store. Unclear or improperly functioning filters and product categories can undoubtedly be frustrating for all of us. In today’s era of online shopping and vast product offerings, it’s crucial for buyers to find the necessary product quickly and easily, and proper product categorization helps achieve that.
Amazon is highly customer-centric, so they take this process very seriously and rigorously control sellers. However, in reality, this is beneficial for sellers as well because it helps increase product visibility.
Most often, a product can be assigned to several different subcategories and sometimes even categories. In such cases, it is recommended to examine the popularity of each category and choose based on this criterion. A product assigned to a more popular category will always be better visible to buyers, but of course, there will be higher competition among sellers, which means an increased advertising budget.
Why is it worth assigning multiple categories to a product?
To maintain a balance between visibility and competitiveness, you can assign products to multiple categories, mostly up to 3, while ensuring the product meets the requirements of each category. The main advantages of selling in different categories are:
Increased visibility
Your product will be displayed in different search results and easily found by a larger group of buyers, even those with different browsing habits.
Cross-selling opportunities
You will have the opportunity to advertise similar or complementary products alongside one product. For example, if you sell pasta-making tools, you can advertise recipe books to customers buying the tools.
Diversification
You won’t need to rely solely on one best-selling product; you can expand your range more easily by gradually introducing new products and advertising them based on the cross-selling principle – alongside familiar and successfully sold items to customers.
Categorizing a product in multiple categories may seem appealing, but it’s crucial to carefully monitor inventory to avoid overstocking, i.e., the total sales from each category should not exceed the warehouse stock level. (Find out more: https://www.ecomcrew.com/amazon-categories-guide/).
How to choose categories?
Amazon categorizes products into 33 main categories, which collectively have over 25 thousand subcategories. The selection might seem challenging, so it’s essential not only to know your product well but also analyze competitors. The Amazon Best Sellers section can also aid in choosing, as it showcases the most popular products in each category. Finally, we recommend using Amazon Browse Tree Guides (BTG) files for assistance. (Find in Amazon Help: https://sellercentral.amazon.com/help/hub/reference/1641).
BTG files provide a complete list of categories and subcategories, along with a primary keyword that customers use to search for products like yours. These files help not only in properly determining categories but also in optimizing the product listing for Amazon’s search system.
It’s important to note that product categories can be changed later.
Different categories have varying requirements and fees
Another interesting and important aspect of selling on Amazon is that Amazon applies different rules to different categories. Essentially, the requirements depend on the general requirements applicable to product categories (e.g., food products or children’s items) to other aspects such as the need for originality verification for automotive parts.
Due to these reasons, there are several categories in which, to start selling, you will need to provide Amazon (or obtain from the manufacturer) the necessary certifications and other documents, and ultimately wait for Amazon to approve them.
Moreover, Amazon applies different fees to different categories, currently ranging from 8% to 15%. This significant difference emphasizes the importance of selecting the most appropriate product category. If you are facing challenges and are unsure about selling on Amazon, our DIGITAL FREAKS team is here to assist you. Together, we will find the best solution for your business.