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How to Find a Profitable Amazon Niche in 2022

It's no surprise that if you're looking to sell things online, Amazon is one of the places you need to be. With 100s of millions of users and fulfilment centres across the world, it is one of the best ways to be seen by as many potential customers as possible.

The downside of this ocean of demand is that most of the best selling niches will already be taken up by enterprising sellers.

Many popular niches are already so full of competition that launching into them without huge investment and/or a huge amount of time is always going to be an uphill struggle.

However, supply and demand are changing all of the time, and if you know what you're doing and apply due diligence, you can find high demand, low competition niches that will give you a much higher chance of long term success.

Let's jump right into how to do this:

How to Find Niche Products for Amazon

For a niche to be worth launching a new product into, it should be/include:

  • Relatively unique products that people can't easily get from their corner store
  • High perceived value or potential for add ons or mark ups
  • Not overly seasonal
  • A price point that is high enough to be profitable, but low enough to be impulse buy territory (roughly $20-$160) 

Niches to avoid include:

  • Ones that are likely to break or fail easily (glass, fragile tech)
  • Products that are generally all the same or very difficult to improve on (e.g. vitamin B tablets or USB sticks)

When choosing a niche to go with, follow these tips:

Ensure the Profit Margin is There

Remember, there will be a lot of things taking away your profit - Amazon fees, tax, marketing spend etc - if this isn't built in your price from the start, you are going to struggle to ever make money.

Despite you needing a good profit margin, the percentage itself isn't necessarily all there is to it.

For example if a product costs you 0.15 to make and you can sell it for 2.00, this is a great profit margin, but you are going to need to move some serious volume to turn that per-sale profit into good income.

Selling a product that cost you $20 to make for $35 might be a significantly worse profit margin, but each individual sale comes with some freedom to absorb costs and still be profitable, making it arguably better.

Keep Shipping & Logistics in Mind

If a product is so heavy or large that shipping and unpacking it is difficult - you will pay more for shipping, units will be more commonly damaged, and individual shipments from your manufacturer will contain less units.

Not only that, but smaller, lighter products tend to be easier and cheaper to replace when things do go wrong.

Be Sure the Demand is Consistent

This might be obvious, and we briefly touched on being aware of seasonality - but just because you're selling a good product at a good price, and it is organically ranked well - doesn't mean people are actually looking for it.

We recommend using a software tool such as H10 to check the sales being achieved by similar products, as well as the search volume of relevant keywords.

Really you want to aim for products that are already selling 200+ units per month elsewhere. Ones that are selling less than this may have a very small market or not be looked for on Amazon at all.