Singapore's e-commerce landscape is booming, with Statista projecting revenue to reach US$5.04 billion in 2024 and further grow at an annual rate of 10.76%, culminating in a projected market volume of US$8.40 billion by 2029. The number of e-commerce users is also expected to surge, reaching 4.9 million by 2029, with user penetration predicted to hit 80.4%.
Amid this thriving digital marketplace, Amazon is a powerful platform for local businesses to tap into a vast international audience. However, to thrive in this competitive environment, Singaporean sellers must strategically align their offerings with the most profitable product categories and manage their logistics and delivery solutions efficiently to maximise profitability.
Introduction to profitability on Amazon
Amazon presents a lucrative opportunity for local e-commerce businesses. Currently, Amazon Singapore is the second most visited e-commerce platform in the country, according to Similarweb, with an average of 7.6 million visits in the past 3 months (SEMrush data). It is a bustling marketplace where millions of products compete for attention, with over 1.9 million small and medium-sized businesses contributing to nearly 60% of the site’s total retail sales.
However, success and profitability on Amazon aren't guaranteed. Several factors influence product profitability, including demand, competition, pricing strategies, and shipping costs. Additionally, with the B2C e-commerce export revenue projected to more than double from US$1.7 billion in 2022 to US$3.9 billion by 2027 (Amazon Global Selling Singapore 2024 trend report), understanding these dynamics is crucial for Singaporean sellers aiming to maximise their earnings. Therefore, by carefully analysing these factors and identifying the most profitable items to sell, local sellers can strategically position themselves for success.
What category makes the most money on Amazon?
Identifying the right product categories is crucial for achieving profitability on Amazon. Here's a look at some of the top-performing categories and best things to sell on Amazon in Singapore:
Smart living
As technology advances, the demand for smart home devices and gadgets is on the rise, making this category one of the most profitable on Amazon. This category offers significant profit potential for Singaporean sellers, with products like smart speakers, home security systems, and smart lighting solutions being particularly popular. To stand out in this arena, consider specialising in unique and cutting-edge products, such as AI-powered home assistants or smart appliances that seamlessly integrate with existing ecosystems.
Electronics and gadgets
Electronics and gadgets remain a perennial favourite among online shoppers. From mobile phone accessories and laptops to gaming consoles and headphones, this category presents high-demand products and high-margin opportunities for sellers. If you’re looking to venture into selling products from this category, keeping up with the latest trends and offering innovative products can give you a competitive edge, ensuring your offerings are amongst the top items sold on Amazon.
Health and wellness products
The growing focus on health and well-being has fuelled demand for health-related products. Singaporean sellers can capitalise on this trend by offering items such as fitness trackers, supplements, and home exercise equipment. Products that promote self-care and stress relief are also gaining popularity, making this category one of the best products to sell on Amazon currently.
To carve out a niche in this category, consider specialising in areas like organic supplements or eco-friendly fitness gear. You can also offer bundled products or create informative content related to health and wellness, which can further distinguish your brand and attract a loyal customer base.
Home and kitchen essentials
Home and kitchen essentials are always in demand, making them one of the consistently top-selling items on Amazon and a reliable source of sales for e-commerce businesses. From cookware and kitchen appliances to home decor and storage solutions, there is a wide range of products that one can sell.
To be profitable in this category, focus on offering unique or specialised products that solve specific customer pain points. In this category, high-quality product images, detailed descriptions, and competitive pricing are also crucial to attract buyers and stand out.
Fashion and apparel
Fashion and apparel continue to be one of Amazon's best sellers and a major player in the e-commerce space as a whole. With a vast array of products, including clothing, shoes, accessories, and jewellery, this category offers diverse opportunities for sellers. To ensure profitability in this category, consider focusing on niche markets or specific trends. This can be done by identifying underserved segments or catering to specific fashion preferences, which can help you stand out from the competition.

Strategies for success in competitive categories
Knowing the most popular items to sell is just one piece of the puzzle. To truly succeed on Amazon, you need to adopt strategic approaches, such as:
Effective pricing strategies
Competitive pricing is essential for attracting customers, but it's crucial to maintain healthy profit margins. Hence, you should research your competitors' pricing and factor in your costs, including shipping and Amazon fees. It is also recommended to consider offering discounts or promotions strategically to boost sales without sacrificing profitability.
Optimised listings
Creating compelling product listings is key to grabbing the attention of potential customers. This can be done by using high-resolution pictures, writing detailed and informative product descriptions, and utilising relevant keywords to improve your search ranking. It is also essential to optimise your listings for mobile usage, as a significant portion of Amazon shoppers use their smartphones to browse and make purchases.
Customer reviews and ratings
Positive reviews and ratings can significantly boost your sales. Therefore, you should encourage customers to leave feedback by providing excellent customer service and proactively addressing any issues. It is also wise to respond to reviews promptly, demonstrating your commitment to customer satisfaction.
However, it's important to strike a balance and avoid being overly pushy when soliciting reviews. Customers appreciate genuine requests for feedback but may feel pressured if they receive constant reminders or incentives that seem manipulative. Instead, focus on creating a positive experience that naturally encourages customers to share their thoughts. This could involve including a friendly note in their package or sending a follow-up email after delivery.
Market saturation
Before entering a product category, assess its level of saturation. Saturated markets are challenging to break into, so consider niche products or underserved segments. You can conduct thorough market and competitor research using online tools or databases to identify opportunities to differentiate your offerings and stand out.
Differentiation strategies
In competitive categories, finding ways to differentiate your products and brand is essential. This can be achieved through:
- Exceptional customer service: Provide outstanding customer service, including fast shipping, easy returns, and responsive communication.
- Logistics optimisation: Partner with a reliable e-commerce logistics provider like DHL Express to ensure efficient and timely delivery, even during peak seasons.
- Value-added services: Offer additional services like gift wrapping, personalised notes, or product bundles to enhance the customer experience.
- Secure Packaging: Utilise proper packaging techniques and consider offering parcel tracking to assure customers of their purchase's safe arrival.
- Shipment insurance: Consider offering shipment protection to safeguard against potential loss or damage, further building customer trust and confidence.
Maximising profitability on Amazon
In e-commerce, understanding the most profitable Amazon products and implementing effective strategies are crucial for Singaporean sellers looking to thrive. By carefully selecting product categories, optimising listings, and providing exceptional customer service, you can maximise profitability across various product ranges. Remember, standing out from the competition requires a combination of smart product choices, effective marketing, and seamless logistics services.
Open a DHL account today to access reliable and efficient e-commerce delivery solutions tailored to your business needs. With our expertise in international shipping and parcel tracking, we can help you streamline your logistics operations and deliver exceptional customer experiences.

Enjoy the extensive benefits of shipping with DHL Express, including attractive shipping rates, and set the stage for success and start growing your business.