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Beginner’s Guide To Amazon Selling: Ways to Find Your Niche Product

Beginner’s Guide To Amazon Selling: Ways to Find Your Niche Product

Finding a lucrative niche is one of the best ways to increase Amazon revenues. As most experienced Amazon sellers know, choosing the right products is the secret to success in terms of making money on Amazon. Although this may be an easy feat for experienced sellers, newbie sellers frequently become lost, stuck, or run out of ideas for their niche product.

Since this struggle is gatekeeping other Amazon sellers from fruition, we at OFP wrote this blog piece to help newbie sellers find their profitable Amazon niche that would lead them to success.

What is a Niche?

What is a niche?

In simpler terms, a niche refers to a smaller segment of a larger market that concentrates primarily on specific customer demographics, shared interests, geographical areas, or a set of consumer problems.

For instance, if the technology industry is viewed as a market, a niche in this context would be the market for computers, mechanical keyboards, consoles, etc.

Also, if we’re talking about electronics, the niche could be devices like Bluetooth speakers, mobile connectors, or earphones.

Amazon niche: technology and electronic products

Another example of this is shoes. If your target audience wears sneakers, platforms, boots, and stilettos in their day-to-day activities, what kind of products would benefit them? It can be small parts like shoe laces, insoles, or shoe whitening products and cleaners. Now that’s a niche.

Focusing on the small portion of the population is precisely what you should do since it is much easier and more profitable.

Why is a niche important for an Amazon Seller?

Profitable niches bring undeniable advantages, including lowered competition, concentrated business efforts, expertise sales, and brand recognition. Targeting a particular audience and catering to its specific needs and preferences give you a competitive edge over sellers that cater to a larger audience. This will set your strategy apart and win over customers.

What we’re looking to find are high-demand, low-competition products. Because of the continuous increase of online shoppers, new or trending products can be a great source of ideas for an Amazon niche.

Product Research

But a little warning: when doing product research, remember that not every niche product can be worth going for.

In this case, we’ve prepared ways for you to determine and narrow down the best products you can choose as your niche.

How To Find Your Amazon Niche

You’ll have to start by researching various customer interests and habits. This way, you can gather enough data to know which products do well on the market and which products might as well be left to be covered in cobwebs.

As always, to hunt the most profitable Amazon niches, you would need to conduct your product research on Amazon FBA and select a target audience that you carve out of the general market.

Here are the most common criteria you need to pay attention to when choosing a niche product:

✔️ Quality
✔️ Price
✔️ Demographics
✔️ Buyer Behavior
✔️ Geography

Tips On How To Pick Your Ideal and Profitable Niche

Niches have the power to increase conversion rates. Not only that, having a niche will earn you loyal customers that might constantly purchase products from you monthly or even biweekly. It’s vital that you should aim for a consistent sales flow as well as generate steady traffic.

Amazon niche: Do’s and Don’ts

What makes a good niche product?

  • priced between $15 to $200
  • isn't readily available in every local shop
  • a unique product that adds value 
  • lightweight, easy to pack and use

Types of niche products you shouldn’t choose:

  • items with a high competition rate
  • heavy, oversized, fragile, and perishable products
  • seasonal items
  • items that are difficult to build or assemble 
  • restricted goods, licensed, or difficult-to-manufacture categories

1. Keyword research is a must

SEO is crucial to take into account. Keyword searches are ideal if you’re looking for potential products as your niche.  The listing that receives the most significant active traffic and sales volume is chosen by Amazon's search engine.

Using ‘longtail’ keywords would be the best option since it easily describes the product in great detail.

You can also mix a bit of creativity in there! Finding new products can really be time-consuming, and it also requires the seller to have a deep understanding of the market. You can look through Amazon’s "Best Sellers" and "New Release" sections or simply get inspiration from social media sites like Facebook, Instagram, Tiktok, and Youtube.

Once you find a niche product that interests you, analyze its performance and potential in the market.

Get your team of the best Amazon Product Research Specialists from the Philippines. Connect with us today.
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2. Say no to seasonal products

Yes, products that are in season can help you boost your salesbut only for a limited time.
If you want more conversions, sales, and higher-ranking listings on Amazon, don’t settle for products that aren’t in demand all year long.

To maintain a stable turnover, items that are in demand at all times should be on top of your list. Examples of this are health and beauty products, pet supplies, vitamins, and products that people use on a daily basis.

3. Good profit margin

Amazon niche: Good profit margin

Naturally, the purpose of selling on Amazon is to generate income. That’s why you need to keep track of several things.  All fees and expenditures such as item costs, shipping costs, and FBA charges should be considered before placing an order for your inventory.

Take note of the price ranges as well. For instance, if you buy a small item for about $0.15 and sell it for a high price, your profit margin is excellent. You must, however, sell a massive number of these products to earn more money. On the other hand, if you buy a product for $10 and sell it for $25, you’ll have more room for extra fees.

4. Keep an eye out for product competitors who don't have videos

With content marketing getting more popular nowadays, this task can be hard to accomplish. After all, your competitors also know that including videos on their listings is a great eye-catcher. But, of course, if you find a niche where there are few to no videos of comparable or competing products, then you’re going on a flowery path.

5. Make sure the product has good and continual demand

Amazon niche: Make sure the product has good and continual demand

As stated above, items that are regularly used by consumers tend to produce steady orders and sales. To get your desired income range or sale stability, select a niche product that will result in an unlimited amount of orders anytime.

As a business owner, you must envision what products consumers would typically go for.  Give them a solution to their problems.

The product should also have a healthy profit margin, which is often anything above 15%.
In fact, you can utilize an Amazon niche-finding tool, but keep in mind that your competitors will likely use one as well.

Additionally, you can search directly through Amazon's numerous categories to discover niches that might interest you.

Let our team of top-notch Amazon Seller VAs get your business going. Talk to us today.
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Final Thoughts

To find a good niche for your Amazon business, you must think of your target audience first, and the rest will follow. With proper tools and guidance, you’ll be able to establish a good brand. As long as you immerse yourself in doing more research, taking notes, and showcase outstanding performance as a seller, you can say hello to loyal customers!


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