Finding Niche Sales Opportunities on Amazon

It is the dream of every Amazon seller and most aspiring business owners to find that perfect niche.  A niche that is both profitable and faces low competition. 

Finding the ideal niche to venture into as a seller can make all the difference when you decide to start selling your products on Amazon. The niche you choose will make or break your business in the long run.

This is why it is crucial that you carefully weigh up all the pros and cons of any niche before diving into it

In this guide, you will learn the best steps to find the perfect niche.  This will give you the best start with knowing what to sell on Amazon and make a profit

A profitable niche is one that has a healthy number of monthly sales and faces less competition. Let’s explore what a niche is and why it matters when it comes to selling on Amazon.

Finding Niche Sales Opportunities on Amazon

What is a Niche, and Why Does It Matter?

A niche is a smaller part of a broad market. It often deals with a smaller share of the bigger market. Think of a niche product as a product that specifically targets specific demographics, locations, hobbies, or problems that consumers have.

We think of ‘health’ as a niche, which is a smaller segment of the entire Amazon marketplace. Going a level deeper would be ‘diet and weight loss’ as a sub-niche of the health niche.

Another great example is the pet niche. The pet niche is a large niche on Amazon. Delve further down to a particular pet type, such as dogs and cats. Even that can still be narrowed down to target various breeds.

So, a niche is the product category you can find on Amazon. The good news is, there are hundreds of niches on Amazon.

Chances are you will find one that will interest you.

When it comes to selling, it is best to find a category and become an expert in it.  You don’t want to be a jack of all trades and a master of none. 

Part of the research with finding a niche should also involve what the potential profitability of it includes.  Not all niches sell consistently all year round. Some niches are seasonal, while others follow trends and sell all year round.

Picking a niche will help you to organize your inventory and remove the guesswork when you are shopping for products to sell on your Amazon FBA account.

Check out the various steps we guide you through to find the perfect niche. Most times, it is wise to go with one that aligns with your interests.

But before diving in, let’s look at how Tactical Arbitrage can make a difference when you are carrying out niche research.

What is Tactical Arbitrage, and Why Should You Use It for Your Niche Research

Tactical Arbitrage is an online tool specially developed for sellers on Amazon. The tool gives you an easier way to find and compare the price of the same product in hundreds of online stores.

The difference between your product and the selling price minus the fees are what you would profit from each sale. Using Tactical arbitrage helps you to find the best product cost and figures out the profit easily.

You will save a tremendous amount of time using this semi- automated solution.  This will help you to get a grasp of the overall market for certain products as well by comparing what is selling and the prices they are.

Finding a Profitable Niche | 7 Tips to Help With Your Search

There is an endless array of different niches that you can find for your next product.  It really helps if you can narrow things down and do a deep dive into each one to examine if it is worthy of your dedicated time.

Let’s explore 7 tips to help you narrow down your options.

1 | Start with the Amazon Product Category

We all know that Amazon is a big marketplace. Luckily, the marketplace has been divided into various categories so that we wouldn’t get lost in it.

When looking for a profitable niche to venture into, one of the very first places you might want to check is the various categories available on the platform. 

Most of the time, it is advisable that you pick a niche that you have interest in, and more specifically, one that aligns with your passions. 

Think of a hobby or a passion that you may have and try to look for a category on Amazon that caters to this passion or hobby.  You may want to narrow down your option to a particular subcategory or browse through the whole category. 

While browsing through the categories, pick out products that hold your interest. These products are most likely the best sellers in their category and will come up on the first page. 

You can note them down in an excel sheet and get as many of these products as possible in ways that you can remember them individually.

2 | Identify a Product That Solves a Problem

solution of problem

The next tip requires some narrowing down our list of chosen products. It involves you classifying the selected products based on how they affect buyers.

There are some products that are related to recreation, some that are necessities, and others that are just trends. .

When looking for a product niche to venture into, you might want to focus on a niche that solves a particular problem for your buyers.

Products that solve problems are more profitable because they are necessary, and buyers will always need them. 

Some products may not solve any real-life problems, yet they may satisfy a strong desire or need. Therefore, a niche that caters to particular hobbies is an excellent option to consider.

As a rule of thumb, it is often best that you avoid a seasonal niche. A seasonal niche is one that is only profitable at particular times of the year. 

This type of niche is best traded briefly when they are in season.

Finding Niche Sales Opportunities on Amazon

3 | Check the Best Seller Rank

The next tip is to check the best seller ranks for the various products.

The best seller rank is Amazon’s way of keeping track of the performance of different products in different categories.

Once you find products with a good best seller rank, the next thing you might want to consider is the price the products are being sold for. Are you able to reduce the price, sell the products at a competitive price,and still make a profit?

To carry out the price competition analysis, you might want to consider using Tactical Arbitrage. 

It will find the lowest price for any given product by comparing the costs of the same product across hundreds of stores. 

You can get an idea of what the product will cost you, and whether you can sell it at the market value to make a profit.

4 | Check the Reviews

Keep your eyes on the reviews while browsing through the categories.  Note the ones in which a buyer leaves a detailed review.

You should pay attention to two things when going through the buyers’ reviews: 

  1. What they are looking for?
  2. Were satisfied with the product? 

The review section is the best place to find out what buyers are looking for when they purchase a particular product.  It will also tell you if that product has met their expectations or not.

You may also find some opportunities to improve or differentiate the products.  This is why you also want to look at the 1 and 2 star reviews for ideas of improvements.

You may find reviews are not evenly distributed among the various sellers.  This should be a warning that it may be difficult to break into this market.

5 | Check for Videos

Keep an eye out for videos as they often show the level of competition in a niche. A highly competitive niche will be filled with different products that have videos as their main sales tactic.

It shows that these sellers are heavily invested in this, so it may be difficult for you to keep up.  You might want to avoid a niche of this kind for the time being.

Video descriptions are essential for ranking high on the Amazon search result page.  Ensure that you include related videos about the product to increase the visibility of your items in the marketplace.

dimension measure

6 | Consider the Dimensions of the Product

The dimensions of the products in a niche is very important and as such, should be carefully considered.

Certain features make it easier for one to sell a particular product on Amazon. A small and lightweight product might be easier to sell than a large and heavy. 

The reason is simple: small size and lightweight products are easier to package and cheaper to ship than larger products with complex parts.

This could also be an advantage as there usually is not much competition for larger and heavier items.

Just consider the dimensions of the products and work out the cost of shipping.  You will need to determine how the fees will factor into your profits and monthly sale volume.

7 | Explore Niche Communities for Product Ideas

There are many niche communities on the internet. You can join the conversations in some of them, make an idea of what they like ordesire, and work out ways to meet their needs with your products.

Amazon, as a marketplace, also has a community that sellers can join, share their ideas, and follow some of the top sellers to know more about profitable sub-niches.

Online communities such as Reddit will also provide you with a ready answer on what buyers in a particular niche are looking for. 

Subreddits are a powerful tool that you can use to narrow down product ideas to specific demographics, locations, common interests, or problems among consumers.

Final Thoughts

Finding a niche does not have to be too difficult.  It is best to examine multiple ideas at once and track these on a spreadsheet.  

You could grade each niche according to the tips to help you narrow down your choices with some data.  Our best advice is to pick something you have some interest in.  

This will increase the odds that you will be motivated to build into a successful venture.