Why Experts Say the Best Amazon Product Niches Shouldn’t Look TOO Good

November 29, 2021
November 29, 2021 Andy Irvine

Why Experts Say the Best Amazon Product Niches Shouldn’t Look TOO Good

Like the idea of having a hot new Amazon product niche all to yourself? Here's how NOT to share it with thousands of ecommerce competitors!

Are you interested in turning your Amazon selling hobby into a full-time business? For many Amazon FBA sellers, the first step involves locating a profitable product niche that doesn’t look TOO good. 

You do want to identify that there’s enough demand that you can make a good profit, but not so much that the niche will become overcrowded with thousands of other sellers.

Many successful Amazon product ideas require that kind of delicate ecommerce balancing act. A great private label product niche will probably be located right there at the intersection of sufficient demand and low competition.

Here’s a guide that can help with that fancy Amazon-selling footwork. 

1. Product Opportunity Starts Here! 

Most profitable Amazon niches share the following attributes:

  • Prices (and product niches) on Amazon run from pennies to tens of thousands of dollars. The sweet spot however is between 20 and 50 dollars. That’s enough money to not have to sell too many products within an Amazon niche to make a profit. It’s also low enough that it won’t cost you thousands of dollars to maintain sufficient stock. 
  • Pay attention to the size of the product. Amazon storage and shipping fees can be a profit killer. Look for something that’s small and light. Not only is it easier and cheaper to ship, It might just make it possible for you to maintain your own stock in a garage or at a 3PL (Third Party Logistics company) in case of Amazon shipping disruptions. Think of something like fidget spinners versus big-screen TVs.
  • Consistency of profit is key. Try to look for a steady profit margin of between 10-30%.

2. Year-Long Profits Are Your Goal 

It’s always tempting to jump on the seasonal product bandwagon. Holiday-specific items like Halloween costumes or Christmas trees are hard to say no to, but for a profitable niche, experienced Amazon sellers look for products that have consistent, repeatable sales. 

The problem with these types of items is that once the season passes, sales diminish and your hard-won rankings can disappear right with them. To get back up to speed the next time the holiday comes around involves more ad spend and overall preparation. 

To really make your Amazon business take off, you want to try to find an evergreen niche that has consistent customer demand.

Also, depending on the location, not all Amazon products will be a fit. For example, snow shovels and studded running shoes might not be a good idea because they don’t suit your region’s climate.

3. No Listing Video? That Might Be Your Product! 

If you’re a successful, talented Amazon private label seller, you know that your job is to stop the scroll. Video is one way to do it. Videos give sellers the opportunity to show the experience prospective buyers will have when using your product! In an online space where customers can’t physically touch and interact with your product, it’s crucial. 

In many cases, it’s also the dividing line between professional Amazon sellers taking ecommerce seriously, and those out for a quick buck. 

That’s why a lack of a video in the listing should serve as a potential welcome mat for Amazon sellers looking to do things the right way. 

When re-optimizing a partner’s listing, CANOPY Management’s Creative Services Team uses skilled photographers (and videographers) along with our expert copywriters to help Amazon sellers bring their vision to life. 

4. Amazon’s Subscribe & Save Offers Built In Product Longevity

Laundry detergent and vitamins are just two of the thousands of products that ecommerce shoppers use on a regular basis. Because of that, they will reorder them every time they run out. When it comes to the Amazon marketplace, these kind of products represent built-in sales volume that can really help an ecommerce seller to maintain a steady stream of potential customers.

Amazon’s Subscribe and Save program offers discounted pricing, free shipping, and the convenience of regularly scheduled deliveries on eligible products.

Here’s how it works: 

  • An Amazon customer wants to buy a product.
  • The customer sees a lower price and convenience of regular deliveries for Subscribe and Save products.
  • Your new customer adds your Subscribe & Save eligible product to their cart.
  • You now have a loyal, repeat customer.

5. Google, Helium 10, and Jungle Scout Can All Help You Search

Keywords are one of the biggest ecommerce tools you’ll use for researching and selling a new product on Amazon. If you’re just learning the ropes, it can be easy to get overwhelmed with all of the filtering and sorting tools available.

Here are three great ways to get started. 

Google Auto-Complete 

Autocomplete is a feature within Google Search that makes it faster to complete searches that you start to type. Google says that their automated systems generate predictions that help people save time by allowing them to quickly complete the search they already intended to do.

In 2020, there were 6.9 billion searches on Google every day. Channeling the power of those billions of searches helps give you a quick snapshot of what the internet’s users (your prospective customers), are thinking about. 

The above screenshot makes it clear that “dog costumes,” the autocomplete of the keyword, ”dog” is worth taking a closer look at.

Helium 10’s Black Box 

Helium 10 says that their Black Box tool gives Amazon sellers access to a database of over 450+ million products. You can use smart filters to uncover product ideas based on your exact needs, niche, and preferences. 

The above screenshot shows how I’m using Helium 10’s Black Box to filter in their “niche” tab for pet product ideas that show that “sweet middle ground” of sales and pricing. As you can see I’ve selected only five images in the advanced filters to target less optimized products (and less professional Amazon sellers). 

Jungle Scout’s Niche Hunter

Jungle Scout says that with its Niche Hunter tool, “you can quickly dig into any niche that looks interesting and immediately get a robust analysis of the niche by seeing the seller metrics of the Top 5 sellers for that keyword.” 

Though it is a little more complicated to set up than Helium 10’s Black Box, it does seem to return more advanced results. You can filter for Demand, Average Price, Opportunity Score, Competition, Listing Opportunity Score, and Word Count. 

How an Amazon Agency Can Help

Choosing the right product niche can make or break your Amazon FBA business. Fortunately, there are plenty of resources available to help you find a profitable and competitive private label idea for your Amazon ecommerce business. 

Once you’ve found that product, a good next step is to reach out to an agency specializing in helping sellers like yourself navigate the world of digital marketing and online commerce. 

CANOPY Management’s team leverages our experience from across all corners of the Amazon industry to help you scale your business and gain market share. This allows you to keep your hands on the wheel of your Amazon business while at the same time benefitting from the wealth of experience and expertise of the CANOPY Management team.

One thing that’s for sure, Amazon is not going to stop with the changes. CANOPY will be here to make sure that you’ll be ready!

 

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