Expert Dos and Don'ts to Find the Best Niches for Amazon FBA

Last updated on June 29th, 2023

Written by Himanshi Raj

The best niches for Amazon FBA are not always found within broad categories. Whether you plan to expand your brand or launch your first online store on the platform, you should not overlook or underestimate the power of niches. 

If you’re still navigating how to do proper Amazon product listing optimization with niche selection in mind, we’re here to help. In this article, we’ll discuss the dos and don’ts when finding the best-selling niches on Amazon. Let’s dive in!

Why Finding Profitable Niches Matter

There is no single way to define a “niche” in Amazon. The term can apply to anything, be it a specific type of best-selling product on Amazon or a defined group of buyers.

But regardless of the interpretations and associations tied to the term, all of them share one thing in common: their small size. Niches are subgroups or subcategories of a much more significant facet. Despite their size, niches are hugely helpful to an online seller. 

Here are the reasons why:

1. Niches Have Low Competition

Niche products may not have as many sales as the broader categories, but they present better chances of making sales due to the fewer competitors. As a rule of thumb, the more specific an Amazon niche is, the low competition there will be.

2. They Present Customer Loyalty Opportunities

The best-selling niches focus on the needs of a specific group of customers. If you successfully meet their demands, you can instantly earn their loyalty. They will return the favor by endorsing your product through positive reviews or word-of-mouth recommendations. All in all, these opportunities help strengthen your brand’s influence.

3. Niches are Good Starting Points for New Sellers

You may find niche ideas more beneficial if you are a new Amazon seller. Focusing on niches during the early years of your Amazon business provides much-needed leverage for expanding to more significant categories in the not-so-distant future.

Where to Find Profitable Niches

Which niche products are suitable to sell on Amazon FBA? Before you can come up with the most profitable niches, you must first decide on the group you want to focus on. Delving into customers’ interests and behaviors is an excellent way to figure that out.

To access this data, you must conduct thorough product and keyword research. Knowing how customers think and interact with a product and other topics online gives you valuable insight into their interests. From here, you can begin generating niche ideas for Amazon FBA.

As you begin your deep online research, consider including the following resources:

1. Google

Check how your chosen niche currently performs using a tool called Google Trend. It is best to start your product research with a broad topic. The search engine will direct you to an extensive list of the most popular pages, offering valuable insight into what users find interesting.

2. Popular Communities Online

Access popular online forums and communities like Reddit and Quora to find a profitable Amazon niche. These communities are widely available across the internet, so they’re easily accessible. Explore niche communities and start your product research on your preferred community. This streamlines the entire process, making it more convenient and enjoyable.

Gauging the popularity of your niche ideas is quite easy. Just look at the top posts in these online communities and search for the list of hashtags. Ideally, look for target hashtags that contain posts between 50,000 and 500,000ts.

3. Amazon

Aside from finding profitable Amazon niches through Google Trends and online forums using relevant keywords, you can also find them on Amazon, your target selling platform. If you want to know how much people are usually willing to shell out for a particular niche, look no further than Amazon’s data.  

One option you can do to identify a high-demand product on the retail giant is to check out its Best Sellers.

Another option is to navigate Movers & Shakers. This section displays a popular product whose sales have considerably increased over the past 24 hours. 

Lastly, there is Big Data, which contains more extensive sets of information. Amazon’s algorithm takes these online behavioral details from browsers. It collates them, storing them for use in developing and enhancing its engine. Use this to unveil new and valuable insights helpful in maintaining costs, productivity, and competition.

Dos in Finding a Profitable Niche Product

The best-selling products on Amazon are always those that require frequent replenishment. Here are more qualities of a good niche product:

• A good niche product is not limited to any specific season or holiday. Customers consider them necessities that need to be used year-round or replenished regularly.
• Customers should have restricted access to the costs associated with the product. When potential Amazon shoppers have no idea about the average sales price, you can flexibly set your price based on a reasonable cost that can boost your profits.
• Try to pick a product no cheaper than $15 but not costlier than $200. Items with prices falling in this price range sell more. Those that sell under $15 may come across as cheap or of poor quality, while those higher than $200 aren’t affordable for many.
• Go for items that are not commonly found in brick-and-mortar stores.

Don’ts in Finding a Product Niche

Some goods are worthy of being categorized as best selling niches on Amazon, while others, despite their inherent qualities, may not be as profitable. They usually fall into specific categories. Below are the qualities of the product you should avoid as a niche idea:

• Delicate products that need warranties, like electrical and mechanical games and toys. Due to the sensitivity of these products, they tend to have the highest number of returns or complaints. Both consequences contribute to losses.
• Breakable items that are difficult to ship. As an Amazon seller, you must invest in sturdy packaging materials to ensure that products do not get damaged during transit. The downside is that these materials are not cheap and will add to the overall costs.
• Products sold in physical stores at more or less the same price or in large volumes by other sellers. Also, avoid selling items that are available on eBay. Otherwise, you may run into pricing issues.
• Branded products or those with trademarks and counterfeits. These types of products can get you in trouble with the law. As a reputable Amazon seller, selling counterfeit products should be a big no-no.

Examples of Best Niches for Amazon FBA

If you are not too keen on taking risks, why not sell products in niches that are high in demand? Competition may be tight. But if you are up for the challenge, success may not be as elusive as what other beginner Amazon sellers might think.

1. Physical Books

Try including books on your product ideas. We’re not referring to e-books or anything that can be read on a notebook or computer, but the timeless type complete with pages and a front-and-back cover. No matter how technology has progressed, still, nothing tops the satisfaction of holding an actual book and flipping through its pages.

2. Baby Essentials

The truth is, the world will never run out of babies and toddlers. With that fact comes the need to provide them necessities such as milk bottles, diapers, baby clothing, and more. These products are usually affordable, ship quickly, and are always in high demand.

3. Trinkets and Baubles

Jewelry has always sold like hotcakes, whatever shape and form. Competition can get fierce, though. This is why you need to advertise diligently using strategic marketing practices. You can also seek help from Amazon experts to help you on the marketing side of your niche products.

4. All Types of Wearable Workout Necessities

With more people jumping on the fitness bandwagon, workout wear will continue to be in demand. Ensure that the items you ship out to customers are new. There have been many complaints of used clothing sold by unscrupulous Amazon sellers.

Find the Best Niches for Amazon FBA With Seller Interactive!

Niche products are essential to Amazon sellers. The search for them can get tedious, but you can easily overcome this challenge by allocating enough time for product research. With the product ideas and tips we shared in this post, we hope to help you achieve a viral product launch.

A little effort and patience will eventually lead you to ideal niches with low competition and may yield a high profit margin in the long run. But if you want to save time on performing product research and optimizing your listings, we got your back!
Seller Interactive can help you work on your product listing optimization needs. Book a call today to get to know more about our services.