Tapping into Amazon's Diverse Categories

Amazon’s niche marketplaces are tailored for specific audiences and offer sellers a way to reach quality-driven, unique-focused customers. These marketplaces bring a distinct edge: reduced competition, targeted audiences, and the brand-building benefits of Amazon’s vast reach. Here’s an overview of the fresh, luxury and handmade marketplaces, with insights into how sellers can use them to grow.

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Why Niche Marketplaces?

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Amazon’s specialised marketplaces aren’t just categories; they’re curated platforms with dedicated buyers and less crowded competition. Here’s why they’re valuable:

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• Targeted Audiences: Fresh food, luxury shoppers, and artisan lovers—each marketplace has its own shopper demographic.
• Less Crowded Space: Niche markets attract fewer sellers, increasing visibility and discoverability.
• Brand Credibility: Each platform is curated to maintain quality, which attracts discerning buyers ready to pay for convenience, exclusivity, or authenticity.

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Amazon Fresh: Online Groceries on Demand

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Amazon Fresh caters to the booming online grocery market, offering fresh produce, pantry essentials, and household items to a growing customer base. With more people ordering groceries online than ever, Amazon Fresh is ideal for sellers ready to meet Amazon’s high standards for packaging, compliance, and freshness.

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Why Sellers Should Consider Amazon Fresh:

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• Growing Demand: Online grocery shopping rose sharply during the pandemic and shows no sign of slowing. Amazon Fresh has over 20 million monthly visitors and appeals to customers who prioritise quality and convenience.
• Lower Competition: With fewer sellers in the grocery category, there’s a real opportunity for those who can meet Amazon’s strict guidelines.

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What You Need to Know:

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• Strict Standards: Products must be fresh, properly labelled, and have a clear expiration date.
• Repeat Customer Base: Many Amazon Fresh customers are loyal, repeat buyers, making it a reliable space for sellers who can deliver consistent quality.

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Sellers ready to tap into the online grocery trend can find a steady market with Amazon Fresh, as long as they meet the platform’s quality expectations.

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Amazon Luxury Stores: Prestige Meets Reach

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Amazon Luxury Stores launched in 2020 to give high-end brands a premium online space with the reach of Amazon’s platform. It’s a natural fit for iconic brands like Chanel and Oscar de la Renta, offering a more curated shopping experience for customers who value exclusivity.

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Why It Works for Luxury Brands:

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• Lower Customer Acquisition Cost (CAC): Social media CACs have skyrocketed, making Amazon’s direct access to high-intent shoppers a valuable asset. Indeed, you can either give 15% to Amazon or blow 15% on CAC on FB/IG/Google. 

• Customisable Brand Experience: Luxury Stores allows brands to create bespoke storefronts and offer premium services, like in-home try-ons and styling consultations.

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The Challenge:

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• Maintaining Exclusivity: Amazon’s reach is great, but luxury buyers expect a curated experience. With 82% of Amazon shoppers driven by price, there’s a risk of diluting the brand’s high-end feel.

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“Amazon is bridging the gap between exclusivity and accessibility, making luxury brands available to be experienced by all. Amazon Luxury Stores also offers sustainable choices of pre-owned high-end brands making luxury circular fashion available to a broad audience.”  

 - Sibelle Mehmet  (Brand Director at Sitruna with 2 years of experience managing Luxury brands at Amazon).

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Amazon Handmade: A Global Stage for Artisans

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Amazon Handmade provides artisans a unique platform to showcase genuinely handmade products to millions of customers. Unlike mass-produced items, Handmade products are curated for quality and authenticity, creating a space where artisans can thrive.

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Why Choose Amazon Handmade:

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• Massive Reach: Amazon’s user base means a global audience for artisans, especially those selling products like “handmade jewellery, home décor, and unique gifts.”
• Affordable Entry: Unlike Etsy’s per-listing fees, Handmade charges only a 15% referral fee per sale—with no monthly subscription or listing fees.

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Notable Advantages:

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• Exclusive Platform for Artisans: Only approved sellers are allowed on Handmade, which ensures that shoppers get genuine, handcrafted items. Products must be hand-altered, hand-assembled, or fully handmade, protecting the platform’s artisan focus.
• Dedicated Customer Base: Customers actively searching for unique, crafted items are Amazon Handmade’s core audience, making it easier for artisans to connect with buyers who appreciate quality.

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Compared to Etsy, Amazon Handmade provides greater visibility with fewer competing sellers. With its application process, it’s ideal for artisans looking to scale their business while staying true to their craft.

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Amazon Marketplaces - An increasingly niche offering.

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Amazon’s niche marketplaces are powerful tools for sellers who want to engage specific audiences. In the early noughties, Bezos stroked a broad brush - Amazon had everything but it was unrefined and to many, failed to harness a brand’s true identity. 

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Coming into 2025, consumers expect a higher standard from their digital experience. Through over-catering for these specific categories within the Amazon ecosystem, it is clear that these niches are the most overtly seller-centric on the platform. 

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