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Amazon 1P Strength in Electronics and the Rising Power of 3P Sellers

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Scott Needham
CEO and Founder of SmartScout

Amazon continues to dominate the Electronics category through its 1P presence, especially with major brands like Apple, HP, and Samsung. But while these flagship categories remain controlled by Amazon, the fastest-growing opportunities are often in niches where 3P sellers hold the advantage.

Smartwatches are growing at 141% year over year, with Amazon’s share at 64%. Portable power banks are even more surprising: a 48% growth rate and $73.8M in monthly revenue, while Amazon itself only holds 7% of the market. This is where third-party sellers are finding real traction.

At the same time, QLED TVs have emerged as a high-value niche. With just 14 brands participating, the category brings in $67.6M per month and grows at 26%, making it one of the most concentrated yet lucrative verticals on Amazon.

Top Electronics Subcategories by Revenue and Growth

Here’s a breakdown of the most important subcategories, explained in plain terms for sellers and analysts:

  • Traditional Laptop Computers – $175.9M revenue, 129 brands, 56% Amazon share, -30% growth

    Once the largest category, laptops are in steep decline. Amazon still dominates, but shrinking demand suggests longer replacement cycles or saturation.
  • Computer Tablets – $163.2M revenue, 424 brands, 75% Amazon share, -39% growth

    Tablets are falling even faster than laptops, signaling major challenges for OEMs in this segment.
  • Smartwatches – $145.2M revenue, 807 brands, 64% Amazon share, +141% growth

    This is the fastest-growing category in Electronics. Despite Amazon’s strong presence, new brands are flooding in to capture consumer demand.
  • Over-Ear Headphones – $134.0M revenue, 1,231 brands, 49% Amazon share, +25% growth

    A competitive space with thousands of sellers. Differentiation is critical to stand out in this crowded but profitable market.
  • Earbuds & In-Ear Headphones – $126.1M revenue, 2,780 brands, 33% Amazon share, +18% growth

    Even more competitive than over-ear headphones. Volume is massive, but price pressure is intense.
  • Computer Monitors – $122.8M revenue, 670 brands, 54% Amazon share, +12% growth

    A solid but slower-growing category. Amazon controls more than half the market.
  • Cell Phone Portable Power Banks – $73.8M revenue, 704 brands, 7% Amazon share, +48% growth

    One of the best 3P opportunities in Electronics. Despite low Amazon penetration, demand keeps surging.
  • Portable Bluetooth Speakers – $69.7M revenue, 1,065 brands, 24% Amazon share, +30% growth

    Strong growth and a wide spread of brands competing for share.
  • QLED TVs – $67.6M revenue, 14 brands, 64% Amazon share, +26% growth

    A highly concentrated niche dominated by a handful of players. High-ticket sales make it a powerful category.
  • Computer Networking Switches – $54.1M revenue, 201 brands, 29% Amazon share, -5% growth

    A declining category with limited growth potential.

Key Takeaways for Sellers

  • Laptops and tablets are shrinking fast. These legacy categories still bring in huge revenue but are in long-term decline.
  • Smartwatches and power banks are the real growth drivers. Both are growing rapidly, with power banks being a particularly strong 3P play.
  • Audio is booming. Both over-ear and in-ear headphones are on an upward trend, though competition is fierce.
  • QLED TVs stand out as a high-value niche. With limited brands but strong demand, this is a rare vertical with both exclusivity and growth.

FAQs

Which electronics categories are growing fastest on Amazon?


Smartwatches (+141% growth) and portable power banks (+48% growth) are the fastest-growing categories in Amazon’s Electronics segment.

Why are laptops and tablets declining on Amazon?


The decline in laptops (-30%) and tablets (-39%) is likely due to longer upgrade cycles, market saturation, and consumers shifting toward hybrid devices or smartphones for daily use.

Where do 3P sellers have the biggest opportunities in Electronics?


Portable power banks and headphones offer the strongest opportunities. Power banks in particular have just 7% Amazon share, leaving plenty of room for third-party sellers to capture demand.

What makes QLED TVs a unique category on Amazon?


QLED TVs are dominated by only 14 brands, yet generate $67.6M in monthly revenue and are growing at 26%. The combination of high price points and concentrated competition makes this a lucrative but exclusive vertical.

How important is Amazon 1P in Electronics overall?


Amazon 1P controls a large share in flagship categories like tablets (75%) and laptops (56%). However, the fastest-growing categories often have much lower Amazon penetration, creating space for 3P sellers.

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