5 Things You Need to Know to Find a Niche Market on Amazon
Written by: Ryan Flannagan

Did you know that there are almost 2 million small and medium-sized businesses selling on Amazon in the world?

While this is great news for consumers, it is not so positive for sellers who are struggling to get their products to stand out from the crowd.

Fortunately, there is a simple solution – find the perfect Amazon niche.

If you are ready to start making your fortune on Amazon but are not sure what type of product you should sell, then the below guide is exactly what you need.

Read on to discover five things you need to know on how to find a profitable niche on Amazon. Plus, how to increase your sales volume and maximize profits!

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1. Focus On Finding a Product With a Good Profit Margin

When it comes to finding and deciding which products to sell on Amazon that guarantee to make you money, you need to make sure that you take the time to research profit margins. This refers to how much profit you will make once you have accounted for all other associated costs.

Make sure that you factor in shipping fees, advertising costs, Amazon FBA fees, and any other charges that you will incur when selling a product on Amazon.

If you are unsure of how to get started when it comes to working out profit margins, you might want to use an FBA calculator or reach out to an online supplier who will provide you with an accurate quotation.

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2. Assess Your Online Competition

Before you decide upon an Amazon niche, it is vital that you assess your competition online. While it is obvious that some products, such as iPhones or Nike trainers, are going to come with a lot of competition, you may be surprised at just how many smaller niches on Amazon also have a lot of sellers offering these lesser-known types of products.

However, the only way you will be able to find products to sell that don’t have too much competition is by carrying out manual product research. The process is simple, you just need to complete a simple Amazon search on your shortlist of product ideas, and you will immediately be able to see if a lot of relevant results come up.

If you are struggling to assess your competition online or you need more help finding a profitable niche, an Amazon marketing agency will be able to help you with all of this.

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3. Identify a Product That is in Demand

While this may seem obvious, you may be surprised at just how many Amazons sellers choose to sell an obscure product that not many people want. Therefore, when you are looking for an Amazon niche market, you need to choose a product that is actually in demand.

Again, it is simple to see if a particular product listing is in demand or not. All you need to do is look at the number of orders received each day. That being said, it is also important to assess whether or not you can achieve a loyal customer base that returns to your business time and time again rather than just making a one-time purchase.

Also, when looking to find your niche, try to find a product that will sell well all year round. While seasonal niches can make a lot of money at certain times of the year, sales will significantly drop or disappear altogether in out of season months.

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4. Use the Amazon Niche Finder

Although this can be a time-consuming task, using the Amazon Niche Finder will provide you with lots of niche ideas and also niche keywords which can help you determine how profitable a particular product is based on search volume.

While you may think of Amazon as predominantly a selling site, it is also a search engine in its own right and can be used to great effect to find products and product categories.

Start by selecting a department or broad category and then you will be met with a long list of relevant products. You can also filter down your search further by subcategories if you wish to do so. Once you select a specific product, you will be able to see the Amazon Best Sellers Rank, which can help you to identify how profitable it might be.

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5. Conduct Keyword Research

This is a crucial step in finding a profitable Amazon niche market and will help you determine how successful your Amazon selling business will be. Keyword research is a great resource when it comes to finding trending products and niche ideas on Amazon, as this online marketplace selects the listings that generate the traffic and sales volumes.

When looking for niches on Amazon, it is a good idea to use long-tail keywords rather than seed keywords, as these are more likely to result in you finding the right niche. To those not in the know, a long-tail keyword is one that contains at least 3-4 words in it.

It is also important to use long-tail keywords when you create your product listings on Amazon, as this will help searchers to find your products and result in Amazon ranking you higher than your competitors.

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Niche Products to Avoid on Amazon

There are certain niche products that you should avoid selling on Amazon as these are unlikely to make you much of a profit. These are as follows:

  • Any products with high levels of competition
  • Heavy, bulky, or oversized items that are difficult and expensive to ship
  • Highly seasonal items
  • Highly fashionable items, such as fast fashion
  • Easily broken or very fragile items
  • Restricted category products

If you still need a little more of a helping hand in finding a profitable niche for your target audience on Amazon, then why not get in touch with one of our Amazon consultants? They will be more than happy to help you find your perfect niche on this popular selling site.

Ryan Flannagan
Ryan Flannagan

Ryan Flannagan is the Founder & CEO of Nuanced Media, an international eCommerce marketing agency specializing in Amazon. Nuanced has sold $100s of Millions online and Ryan has built a client base representing a total revenue of over 1.5 billion dollars. Ryan is a published author and has been quoted by a number of media sources such as BuzzFeed, CNBC, and Modern Retail.

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