Attention! Many categories of Amazon are caught in the storm of internal circulation

Attention! Many categories of Amazon are caught in the storm of internal circulation


In 2024, when people discuss which categories are suitable for cross-border e-commerce, they usually mention some "negative examples".

Sellers who are preparing to enter cross-border e-commerce are strongly advised to avoid those highly competitive "red ocean" or even "blood ocean" categories.

01 3C electronics and small household appliances


Years ago, I heard people say that going overseas to do 3C electronics has low costs and high profits. But times have changed, and more people have entered the market, and this category has become the king of volume.

Not to mention how fierce the competition is in these categories in China, Shenzhen Huaqiangbei , as the big brother of domestic 3C electronics wholesale, would cry if it were involved in Amazon.



This type of blood seafood product already has a very mature supply chain system in China, and only a few leading merchants can handle it. It is basically impossible for small sellers to make money from these products.
Moreover, the merchants who are at the top of the game must have some "black technology" to earn high profits at the risk of closing the store. Only those who have resources, funds, and strong risk resistance can play.
But if you are a newbie or do not have strong funds, resources, and risk resistance, it is best not to enter this category.

02 Beauty category
This category seems good, with high demand, rich products and good profits, but in fact most new sellers do not make much money.


The monopoly of big sellers in this category is too serious, and the brand effect is strong. Many of the small categories seem peaceful, but in fact the top 10 or even top 20 products belong to one seller.
Also, because this category involves the use of ingredients, it will undergo multiple certifications and various review procedures, and if not handled properly it may be removed from the platform.
If you do not have certain industry experience and qualifications, you should be cautious when entering this category.

03 Clothing Category


If something cannot be rolled up in China, you must believe that it cannot be rolled up abroad either.
The clothing category is the most obvious example. And this category often involves a very difficult problem - return rate. On Amazon, clothing products with a return rate of 50% or even 60% are everywhere.


Moreover, this category involves features such as color, style, size, etc., which will produce a large number of variants, a huge number of SKUs, and enormous inventory pressure.

04 Toys Category


The toy category is often associated with children. In fact, the market is huge, and the chance of producing a hit product is the highest on Amazon. In addition to Amazon, there is also a good market on other platforms.
But the risk of making toys is one problem, that is, infringement. Once your product sales go up, you may be complained of infringement for no apparent reason. If there is an infringement, your product will be removed from the shelves or even your store will be closed. Sometimes you will also face situations such as frozen funds or compensation.

05
Dog toys and cat climbing frames in the pet category

The competition in the dog toy market is very fierce now, with many best-sellers and serious monopoly among the top players. There are many products with over 10,000 reviews.


Cat climbing frames have a huge production volume and a high degree of category saturation due to their size, weight and purchase price.

06 Swimsuits and skirts in the clothing category
The return rate of clothing is high, especially swimsuits and skirts, which have the highest return rate of over 70%.

07 Night lights and LED light strips in the lighting category

The night light category is severely in-competitive, with price wars taking place every day. The prices of some products are so low that you can’t even imagine.
Not to mention LED light strips. Look at the number of reviews of the sellers in the front row. Do you still have the confidence to continue?

08 Home furnishing destination mats and shower curtains

There is serious involution within the category, few opportunities for differentiation, and price wars for homogeneous products are intensifying.

09 Mobile phone case, tempered glass, data cable


Don’t join in the fun of these three categories unless you bring in a large amount of capital or have relatively strong supply chain resources.


If you are also selecting products, be sure to pay attention to the above categories and products!


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