5 Ways To Find a Profitable Niche On Amazon
Figuring out what to sell on the platform is the most crucial component of your Amazon FBA strategy. By choosing the right niche, you can make good profits and ensure your way on the marketplace is easy as ABC. Although there is no ideal formula for evaluating ideas (it is both an art and science), we’ve collected a few things to pay attention to. So, let’s start.
Scratch Your Own Itch
It’s not the wheel we invented, but it works! If you face some problem or inconvenience, most likely, it is what other people are struggling with. Can you create or find a product to eliminate this issue? If so, you will probably quickly find a group of people who want to buy it. It is how many people start their successful FBA business. Despite not being the wheel we created, it functions. Most are, whatever issue or annoyance you are having is something that other people are also experiencing. Can you design or locate a solution to this problem? If so, you’ll probably locate a group of buyers rather fast. Several people start their prosperous FBA businesses in this manner. The fba small and light program, which is intended for items that are compact and weigh less than 8 oz, is one choice to take into consideration while selling goods on Amazon. This service can save your shipping expenses and increase the appeal of your products to clients seeking quick and inexpensive shipping.
Avoid Million Competitors
There are times when competition is good. It usually means that there is a demand and money to be made. However, some product categories on Amazon are so oversaturated with competitors that it is tough for a new seller to compete. While it may seem that each type of product on the platform already has a million sellers, this is not the case. There are still opportunities to produce products in demand but do not yet have tens of thousands of competitors.
SellerSonar is a fantastic tool for finding such opportunities. Using their tracking service, you can insert the ASIN number of any product on Amazon and find out which keywords it is ranked by. But if you’re trying to choose between two different products for sale on Amazon, and one has 50,000 competitors and the other only 500, we’d be inclined to have only 500, even if demand was a little lower.
Choose a Product That Sells for $10 to $100
It is not a hard and fast rule. However, if you are starting, the ideal price range for selling is less than $100. Feel free to use the Amazon product tracker to check the full picture. Many sellers thrive with more expensive products, and if you have the higher capital required (usually), be sure to do so.
Choosing a really expensive product sounds like a great idea because theoretically, you can make more money. However, think for a moment about yourself as a consumer. As soon as you rise above $100, you leave the category of “impulse purchases.” Now you’re talking about things like laptops, TVs, furniture, etc., where you’re probably going to talk to your spouse, read more reviews, search for videos on YouTube, etc. However, if you’re buying something that costs about $25, you’re probably not going to spend the same amount of time researching.
The cheaper the product, the less likely buyers will find more information about it. Customers are more likely to be impulsive to buy goods at a lower price, especially if such items meet their needs.
When choosing a product, look for a product that costs 10-50 dollars to sell, and focus on selling it in large quantities. Amazon sellers who focus on these products are much more profitable than those who don’t.
In addition, since you will most likely be buying products from China, you need to consider the cost of each part needed to assemble your product, especially if it is a complex part. It can be expensive to deliver items that will sell for more than $50.
If you are still new to the Amazon FBA, focusing on simpler and cheaper private label products is best. However, once you become a professional salesperson who understands all the ins and outs of selling on Amazon, you’ll be in a better position to do something more sophisticated on the Amazon marketplace.
Choose a Niche With Low Reviews
Reviews are the king when selling on Amazon. It is not the only factor in product ranking, but there is a reason why many of the best results on page 1 have a lot of reviews, mostly positive. Amazon’s goal is to sell products, showing products with the best results at the top of its search rankings.
Because thousands of glowing reviews tend to turn visitors into buyers, there is a direct correlation between the many positive reviews and the high search rankings on Amazon. If each product on page 1 of your main keyword has more than 50 reviews, this may be a problem for you.
That doesn’t mean it’s impossible, but getting 50 reviews takes some time, which means you’ll run into fairly stable, long-term sellers who have a good sales history on Amazon. As a rule, you do not open an Amazon seller account, and the next day you get to the first page in a competitive niche.
So, if you’re looking for an easier win, look for keywords with multiple products on page 1 with less than 50 reviews. If there are any with less than ten reviews or even NO reviews – even better!
This means that if you follow an excellent launch formula and start collecting a few reviews in the first days of your product launch, you will be more likely to get to page 1 in the short term.
Keep In Mind That Size Matters
Many FBA courses recommend selling a product that will fit in a shoebox. The reason they say this is that your cost of shipping and doing this item will be much lower compared to selling something heavy, such as a ping pong table. Sales commissions and shipping costs are always significant.
The problem with small items is that it’s the same thing that every novice FBA vendor is advised to look for – so you’re more likely to find products that are fully saturated where price wars are common. So increasing the size of your “shoebox” is a smart idea. Just make sure you understand how it affects your shipping and fulfillment costs before making a large purchase order.
To Sum Up
The last piece of advice when deciding what to sell on Amazon is to stick to simple things. If you have an idea for a drone that can connect to your email account and automatically pick up your pizza when you order it… Just stop right now. It’s too complicated.
Filter your ideas, think about the innovations you can add to the existing products, choose the promising items, and optimize the listings to maximize your success. Running a profitable business on Amazon is easier than it seems. So, good luck!