6 Easy Ways to Find a Profitable Amazon Niche in 2021
There are a lot of products on Amazon. If you include third-party marketplace sellers, there are hundreds of millions.
These all fall under thousands of product categories and subcategories.
Trying to find the right niche to focus on may seem like a daunting task. You can waste hours going through endless lists of products.
But with the right approach and the right tools, you can make sense of all the data and quickly identify potential niches for your new blog or business.
In this article, we’ll show you how to find niches on Amazon step-by-step and evaluate their potential for profitability.
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3 Things to Consider Before You Find Your First Niche
Before you jump in and try to find a product, you need to get clear on three things:
Your business model
Any hobbies, interests, and professional experience you can use
How much free time you have to devote to the Amazon niche business
These are the three main factors that will impact the type of niche you should go after.
Let’s take a closer look.
What Is Your Business Model Going to Be?
There are two main ways you can start a niche business with amazon:
You can sell products as an affiliate with the Amazon affiliate program.
Invest in your own products and sell them through Amazon FBA.
Affiliate marketing is easier to get started with and requires very little upfront investment (just a few bucks for hosting and a domain).
You can create a blog or YouTube channel today and start promoting products through Amazon Associates without waiting.
An Amazon FBA product typically requires upwards of $5,000 and up to six months of waiting before you can even start selling your first products.
What Are Your Hobbies and Interests?
Just going through and creating a list of your hobbies and interests can be a good starting point for exploring niches.
You can also include your professional experience.
Hobbies: Gardening, football, cooking
Interests: Comedy, video games, books
Experience: Management, software development
All of these are viable starting points for finding your niche, but not all are viable for Amazon.
What’s Your Experience Level & How Much Time Do You Have?
Your experience level and how much time you can invest in the project will help in your final decision.
If you’re inexperienced and work a full-time job, you probably don’t have the resources to tackle a very competitive niche.
Start with a niche market closer to your hobbies, skill sets, or experiences. It’s a lot easier to create high-quality content to attract an audience around your passions.
If you have more experience or the time to invest in learning the required skills, you can go look for opportunities far and wide.
How to Find a Profitable Amazon Niche?
Are you struggling to clear the first hurdle of your Amazon business by finding a niche idea?
Use any of these six methods to find a viable niche to start your business with Amazon, regardless of whether you’re selling an Amazon FBA product or working as an affiliate.
1. Go Deep Into The Amazon Best Sellers
The first place you should start is “category diving” on the Amazon best sellers page.
In the left sidebar, you’ll see a list of the different departments or top-level product categories.
Start with the ones related to some hobby or interest, and work your way forward from there.
For example, if you’re interested in gardening, you can explore what gardening products are selling like hotcakes.
Insect traps and insecticides are some of the best-selling products in the category.
There might be potential for a profitable niche blog about how to deal with insects or natural ways to keep insects out of your garden and home.
That’s just a single example.
2. Use Keyword Research Tools
Another way you can find smaller niches from exploring larger categories is by using keyword research tools.
The Google Ads keyword planner is a great free option. By searching for general keywords, you can quickly find the most popular choices in that category.
For example, if you search for the keyword “toys” you’ll get these results:
Legos, dolls, action figures, Hatchimals, these are all niches. A general blog like “best toys on the web” will struggle to gain traction in 2021.
Instead, going with something specific like “Weekly Lego build plans” will help you build your brand, attract an audience, and start making commissions faster.
You can also try an Amazon-specific tool like SellerApp’s Amazon keyword research tool.
Fidget toys and toys for toddlers are some of the potential niches here.
Knowing the search trends on Amazon is essential because 63% of consumers now regularly use Amazon to search for products, vs. 48% for other search engines like Google.
People with commercial intent, who are ready to buy, are the visitors you really want for your Amazon niche site.
Note: These tools may offer a free trial or a limited free version (like showing the first 10 results), but the full versions cost money.
It may not be too exciting, but niche keyword research is one of the best ways to find your profitable niche on Amazon.
Patience at this stage can mean the difference between a successful business within months and years of struggle without any results.
3. Let Google Help You Get Specific
If you’re struggling to get specific enough, you can use Google autocomplete to help. Just type in the broad category keyword and let Google show you what most people are searching for.
For gardening, it immediately gives you gloves and supplies as general ideas.
Another easy way to explore a market for niches is to finish the search and go through the related searches at the bottom.
“Types of gardening” is not a related niche, but it’s a great search term to find new niche markets.
Indoor gardens, herb gardens, and container gardens are just a few of the specific niche topics you can use to create a niche site.
Follow the Google rabbit hole to explore the niche potential of any industry-wide keyword.
4. Explore Online Communities
If you’re still looking for more ideas (or want to confirm the demand for one), online forums and groups come to the rescue.
Looking for a keyword in the Facebook group's search will often reveal many promising niches.
If you search for the keyword “toys,” you’ll quickly find vintage toys, stuffed toys, baby toys, and more, all with dedicated Facebook groups.
Getting active in these communities can help you find profitable niche products or content ideas and start driving traffic to your niche site.
People will often share products they like, products they have a hard time finding in their area, and more.
It’s also a good idea to search for subreddits, social media hashtags (Instagram and Twitter), and more. Directly interacting with your potential customers is always a good idea.
5. Use an “Amazon Niche Finder”
Not scared to spend money to make money? There are also dedicated third-party solutions designed to help you identify a profitable Amazon product or niche.
AMZScout’s chrome extension adds estimated sales, metrics, and competitive metrics when you search amazon.com for relevant product keywords.
Jungle Scout’s “Opportunity Finder” is another example of paid options. It’s designed to help you find golden product opportunities. It also makes finding your next product idea a lot easier.
(Source: Jungle Scout)
See the average monthly price for different products, estimated sales volume, estimated competition for products, and more.
Note: All of these tools are more heavily veered towards FBA sellers, but the data can be helpful for affiliates too.
6. Consider the Target Audience to Identify a Potential Niche Market
Bread has natural niches based on food allergies. If someone has Celiac or wants to reduce their gluten, gluten-free bread is a niche.
Running might seem like it’s only one broad category but consider different target audiences.
For example, would a 60-year old have the same priorities as a 25-year old?
They’d probably focus more on comfort and minimizing injury than looking cool in the latest skin-tight running suit or fitness watch.
The 3 Key Tips to Finding Profitable Products in Your New Niche
After you think you’ve found a niche, you need to explore it and make sure it has at least a few clearly profitable products.
1. Volume: Are They Selling a Lot of Units Every Month?
The first thing you should check is how many units Amazon currently sells every month.
To do this, visit the Amazon page for a particular product.
Scroll down to the product information section, and you’ll see its Amazon best seller rank.
Ranking in a big category is a strong signal, but it doesn’t give you a real number.
Instead, you can use a sales calculator, like the Amazon Sales Estimator from Jungle Scout, to get a better estimate of monthly sales.
2. Price: What Does It Cost?
What the product costs also affect your earning potential.
For example, something that costs $500 and sells 1,000 units per month can make you more money than something that costs $10 and sells 15,000 units.
Low-price consumer products can also be hard niches to tackle because of all the competition from large retailers and magazines.
3. Profit Margin or Commission: What’s Left For You?
As an Amazon affiliate, the commission you get depends on the product category.
For example, luxury beauty products offer a significant 10% cut, while video games get you a measly 2%.
That means a $30 bottle of shampoo would earn you a much higher commission than a $60 video game ($3 vs. $1.2).
For an FBA product, what does it cost to manufacture a similar one in bulk? Explore sellers on Alibaba to get a basic idea.
You also need to consider size and weight, because it’ll impact your freight costs and profit margin.
Assessing profitability is one of the most often overlooked steps of Amazon niche research.
Three essential considerations to keep in mind when finding a niche on Amazon are:
Narrowing things down by your interests and experience can help you overcome the overwhelming decision paralysis because of the endless options.
Use a mix of different methods to explore potential niches more efficiently.
Always consider the profitability of several popular products in a niche before making your choice.
Finding your first niche on Amazon might seem overwhelming because you have so many choices.
But if you start with your hobbies and interests and use the right tools and tactics, you can quickly identify a suitable niche with tons of potential.
If you use all the methods outlined in this guide, you’ll quickly find more than one good option.
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