You’ve probably heard all the stories of people making thousands of dollars selling products on Amazon. So, just how are they doing it, and what exactly are they selling?
For most successful Amazon sellers, the key is finding niche products with a high amount of demand and minimal competition. With a little knowledge and the right tools, you can find these products, too, and start on your journey towards building a successful Amazon business.
Please keep reading to learn all about niche products and how to find them.
What are Niche Products?
Niche products are products that appeal to a specific segment of customers. These products fulfill a unique set of needs and are often in high demand from a select group of consumers.
The biggest mistake new sellers make is trying to sell products that appeal to everyone. There are a couple of reasons why this isn’t a great strategy:
- Most products that try to appeal to everyone are too general. They do a lot of things alright rather than doing one thing well.
- If a product really does appeal to everyone, there’s probably too much competition to make it profitable for individual sellers.
This is why most successful individual Amazon sellers sell niche products. They identify a segment of a market that isn’t having its needs met. They then find or create a product to serve that specific need.
While niche products may not appeal to as many customers as larger and more general products, there’s generally less competition for them, and customers are usually more passionate about them.
When is a Niche Profitable?
Not every niche is profitable, so it’s essential to do your research before deciding whether to sell products in a particular niche.
There are a number of things that factor into creating a profitable niche, but the two most important things to look at are:
- Demand: In order for a niche to be profitable, there need to be enough people interested in it. If the market for a product or niche is too small, there won’t be enough sales. So, it would help if you made sure there are enough people interested in buying products in a niche to make it worth your while.
- Competition: If there is too much competition in a particular niche, it’s going to be hard for you to get noticed. Even if you have a better product than your competitors, it will take time for customers to recognize that. Because of this, it’s a much better idea to choose a niche where there isn’t a lot of competition. That way, you’ll be able to start generating sales much faster.
If you can find a niche with a lot of demand and not a lot of competition, you’ll be well on your way to becoming a successful Amazon seller.
How to Find a Profitable Niche Product
It’s all well and good to say you have to find a niche with high demand and low competition. But how exactly do you do that?
- Do Keyword Research: Keyword research is an excellent place to start when you’re looking for a niche with a lot of demand. By using tools like Google Keyword Planner, SEMrush, and Longtail Pro, you can find out how many people are searching for a particular product online. You can also do some research to see what keywords and products are trending on social media. This will give you a good idea of how much demand there is for a particular product.
- Research Amazon Sales and Competitors: Keyword research will tell you whether or not a niche product has potential, but you won’t know for sure until you actually see how many people are buying the product on Amazon. You’ll also want to know how many other people are currently selling the product. This may seem like a big job, but luckily there are a number of tools that can quickly sum up a product’s profitability on Amazon. To learn more about the basics of product research, check out AMZScout website.
- Find Niches That You’re Interested In: It’s been proven time and time again that you’re more likely to make money when you’re doing something you’re passionate about. So, try to find a niche you’re genuinely interested in. You’ll likely already have some knowledge of the niche, which will be a big advantage. And it will make running your business much more enjoyable.
Pros and Cons of Selling Niche Products
If you’re wondering whether you should pursue selling niche products on Amazon, consider the following pros and cons before making your final decision.
- Less Competition: Because niche markets are smaller, there are fewer sellers in these in these markets. This allows you to establish yourself quicker and start making sales much sooner.
- Great for New Sellers: Because there’s less competition, it’s a great way for new sellers to get started selling on Amazon. If you can create a great product, you can start making sales right away, even if you’ve never sold on the platform before.
- More Passionate Customers: While niche markets have fewer customers overall, those customers are usually much more passionate about the products. That means if you sell niche products, you’ll likely be able to build a large following of devoted customers.
- Smaller Market: The only real con of selling niche products is that the overall market is smaller. However, for individual sellers, this isn’t really a concern. If you find a niche with enough demand, you can easily make a six-figure income.
Selling niche products on Amazon is a great strategy for both new and established sellers. If you can find the right niche with a good amount of demand and few competitors, you’ll be amazed just how quickly you can grow your Amazon business.