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Trending Niches to Sell on Amazon in 2020 – [A Complete Guide]

Updated: 25th March 2020

Here at Keyworx, we make it our mission to make it as easy as possible for you to make money on Amazon.

Our software already makes it easier than ever to analyse your competitors, learn how they’ve achieved their rankings, and reverse engineer these optimizations, giving you a distinct advantage over anybody not using the software and allowing you to increase your sales rapidly without spending thousands of dollars on marketing agencies.

Our guide on the A9 algorithm also makes it simple for anybody to optimize their product listing as efficiently as possible and rank to the first page.

But what about those budding Amazon entrepreneurs who are just starting out?

Are you stuck asking “how do I find products to sell on Amazon?”

Worry no longer, because we’ve broken down the most effective product research techniques, making it easier than ever to find products to sell on Amazon.

Interested? You should be:

Finding Products to Sell on Amazon FBA: Expert 2020 Product Research, in Simple Terms

With over half of product searches starting on Amazon, there is no better time to get onboard with the eCommerce giant.

Of course, with over 120 million products already listed on Amazon, competition is one the biggest obstacles to finding your ideal product, throwing it on Amazon and making your millions.

A lot of people initially start off hoping to sell products in a niche they’re interested in. While this isn’t impossible, chances are plenty of other people are enthusiastic about it too, and you’re jumping into one of the most competitive spaces on Amazon.

This doesn’t mean you can’t use Amazon to earn long-term, passive income though!

It all comes down to product research.

Even now, there are products with high demand and low competition on Amazon. Find what they are, source high-quality, appealing versions of them from somewhere like Alibabaoptimise your product listingsrank your products using Keyworx and….you pretty much can’t fail.

In many ways, then, sourcing products to sell on Amazon is the most important part of the whole process.

Half-ass it and you’ll just create more work for yourself, diving into a more competitive niche than you need to.

Do it properly though, and you’ll appear out of the blue with a product people want and nobody else is offering – and that’s how you make the big money.

In this guide, we’re calling on a decade of Amazon experience including the same knowledge and data that led to us building the best Amazon product ranking tool, bar none.

We’ll list the most up to date, effective and reliable product research techniques you’ll find anywhere.

Sound good?

Good, let’s dive right in:

First Tip: Build a Solid Foundation by Only Choosing the Best Products to Sell on Amazon FBA

This one isn’t directly related to finding niche products to sell on Amazon, but it’s important to be aware of in the early stages.

Bad feedback (in the form of negative reviews) and returns will both actively hurt your ranking as they tell Amazon that what the customer received was different from what they were expecting from your listing.

Of course, negative reviews actively turn others off buying and returns cost you money too.

You can avoid all of this and improve your general feedback and rankability by taking note of the following steps:

  • Make sure your product is as good as the competition or better, adding new features or finding some way to improve it if you have to.
  • Analyze competitor’s reviews as part of your product research, to learn what customers like and what they don’t. This is a valuable way to learn ways to make your product the best on the market
  • Pack products well to avoid damages

  • Keeping this in mind will improve your feedback and help keep your rank high in the long term, making the rest of the tips listed here more effective!

Now let’s look at some of the best ways to find good products to sell on Amazon:

Find Gaps in the Market with Amazon Reviews

Analyzing product reviews on Amazon is a great way to learn what the market wants.

You will see which products people are showering in five star reviews, and which ones they are clearly unsatisfied with.

Looking at similar products to the ones you're developing can give you tons of ideas. If a popular product has a common complaint or a missing features that customers think it should have, bringing your own version to the market with that feature can lead to you rapidly outperforming those competitors.

For example, the above review suggests that the tent in question is both smaller and of lesser quality than a customer would typically expect for the price point.

If you can get a larger, better quality product to the market for a similar price, it isn’t going to be too difficult to outsell and outrank this one (which is on the first page).

This is a very simple trick, but spending the time researching the reviews around your niche can quickly make you very knowledgeable regarding what customers expect, what they actually tend to get, and how you can improve on that to offer one of the most desirable products available.

Find Products with Low Review Counts for Lower Competition

Of course, the ideal goal is to get your product on the first page of results, as this is where the vast majority of orders come from.

When searching for potential products, if you find a certain product type where listings on the first page have low amounts of reviews (say under 50), this is a great, low competition product to start selling.

Amazon rankings take reviews into account, so this is a sign this is a relatively easy search term to break into the first page for and that a few good reviews will quickly get you on par with the competition.

On the other hand, if you find a search term where all the listings are highly optimized with thousands of reviews, this is probably a much more competitive scene to get into.

This does also make it likely there is a lot of demand for this particular type of product, so it may well be worth dipping into still, but getting a high ranking will take a lot more effort.

In either case, Keyworx makes it easy to track your competitors, learn what causes their rank increases, and implement similar strategies, allowing you to keep your rank and competitive edge longer than ever.

For example, if the above laptop bag is able to show on the first page with only 7 reviews, we know that offering a comparable product at a slightly lower price, with a highly optimized listing, is going to get us to the first page rapidly.

If we can get reviews more quickly than them, we will outrank them quickly, and Keyworx’s rank tracking alerts and insights mean it’s unlikely they’ll ever be able to catch up and reclaim their position.

Use Affiliate Marketing to Test Demand

Have you decided what products to sell on Amazon, but still feel you aren’t sure enough to spend a large amount of money on it?

There’s nothing wrong with playing it safe and testing the demand first.

An easy way to do this is to build a niche blog and open an Amazon affiliate account. You can then try using affiliate links to make a small profit off somebody else’s relevant product listing.

This is an easy way to test the sort of web traffic you can get to your niche blog and the sort of order quantity you could potentially expect.

If the test fails and you get few orders, at least you haven’t wasted a ton of money on stock!

But if it goes well, you can buy stock directly into Amazon FBA and switch the links out on your blog to start selling your own products.

This allows you to avoid the large investment in stock inventory that would usually be necessary on launching a new eCommerce site, and makes it extremely easy to test out different products and see what works before jumping right into buying products to sell on Amazon.

Go Straight to Suppliers for Ideas for Wholesale Products to Sell on Amazon

It’s pretty common that the cheapest and easiest way to get your products made is by finding a manufacturer in Asia via sites like Alibaba.com.

Most suppliers on these sites are accustomed to making products for Amazon and will be more than happy to barcode and pack your products correctly and send them directly to Amazon FBA for you.

This combined with low manufacturing costs make this the best way to find private and white label products to sell on Amazon.

Browsing these sites for low-cost products, calculating how much you could sell them for and then comparing that to the current price points set by the competition can be an easy way to find products you can sell competitively.

We highly recommend sending emails out to several different suppliers asking questions such as how quickly they can produce products, what their minimum order quantity is, whether than can send directly to Amazon for you, etc.

When sending 10 of these emails, we typically find that:

  • 5-6 don’t answer
  • 2-3 provide a vague answer that ignores half of our questions
  • 1-2 give a full, detailed response

Price permitting, you should always go for these suppliers with good communication skills as they are the ones that are experienced in dealing with Amazon sellers and who will likely be ready to answer any further questions you may have in the future.

Dealing with a supplier when there is a strong language barrier or they are just plain bad at communication will cause you many headaches down the line.

The Top Selling Items on Amazon are Great Products to Sell
(But Not if They’re Already Dominated by Big Players & Amazon Themselves!)

Competitor research is one of the most important aspects of selling on Amazon, which is why Keyworx is so important and effective.

While going through the process of developing your product, it’s crucial you set up Keyworx alerts to keep track of any ranking changes or new entries, as some of these can completely change the ball game:

If you don’t use Keyworx, you’ll have to do this manually which takes a lot more work but is still crucial.

If you already have a product listing online and you begin to see major brands enter your niche, this is a sign of high demand. Keep tweaking your listing to remain competitive and you are likely to see growth in the near future.

Unfortunately, if you are still in the product research or planning stage and see major brands entering your niche, or even Amazon themselves via Amazon Basics, this is a major sign NOT to engage in this particular search term or product type – the competition is likely to become much stronger very soon, and you’ll never budge Amazon themselves from the top spot for obvious reasons.

This may be a good time to target a different keyword, differentiate your product somehow, or do anything else you can to avoid directly competing with them – including changing your product idea entirely, if that’s what needs to be done!

Find Amazon Products with High Demand by Searching for Categories with Multiple Best Seller Ranks

Best Seller Rank takes into account both recent sales and historic sales, so it can be used as a sign of demand when looking for hot products to sell on Amazon.

To put it simply, if you search a term and a product listing with Best Seller Rank (BSR) comes up, you know there is demand for that product.

However, it’s not quite that simple, because if there is only one Best Seller product showing up, this is a sign that the audience generally far prefers that product to any alternatives.

For example, if you typed “tomato ketchup” into Amazon, what would you expect to see?

That’s right!

Not only does a Heinz branded product have the Best Seller mark in the first (non-Sponsored) position, but they control the following three positions too!

This means if you are coming into the market with your own branded ketchup and nothing particularly special about it, you might as well not bother. People clearly just want Heinz!

After all, you wouldn’t buy a cheap smartphone from Alibaba and expect to outrank the new iPhone with it, right?

Of course, if you search a keyword and find three separate Best Seller listings, it’s game on!

This means people have no clear preference and all the listings are on somewhat equal footing, so you have a much better chance of ranking well and competing in this space.

For example, the search term “lawn mower” shows up several listings that are clearly selling well, even despite competing against an Amazon Basics listing:

It is also interesting to note that all of the best selling products on this page are cheaper than the Amazon one – if we were launching a lawn mower to compete against these results, we would aim to price it at £70 or lower to remain more appealing than the Amazon listing, if possible.

Hopefully, this guide has given you some ideas regarding how to find profitable products to sell on Amazon.

We will keep these easy-to-read, in-depth guides coming, but the most important aspect of becoming a successful Amazon seller is effective tracking of the market and your competition.

This is why Keyworx is the secret weapon that will transform your Amazon business and give you automatic alerts and insights into changes in your competitors rank, allowing you to reverse engineer their progress and stay at the top of the game.