Finding a niche product to sell on Amazon can be nothing short of difficult. Amazon has been a literal gold rush for the digital age. Everyone wants a piece of the action. After all, more than half of all eCommerce transactions happen on Amazon!
So, how do you go about finding a product that is easy to sell, does not have a lot of competition, has high margins, is not breakable and relatively easy to have manufactured?
Below I have outlined a few high-level approaches and tips to help get you started finding your niche product to sell on Amazon.
Sell what others are selling
Well sort of. The old mantra for how to find a niche product to sell was to look through Amazon Best Sellers list and find inspiration from what is selling like crazy. The problem with this approach is you are going to have HUGE competition and it’s kind of like walking around Walmart aimlessly looking for product inspiration.
An alternative recommendation is to try the Amazon “Movers and Shakers” list. This is a list of the biggest gainers in sales rank over the past 24 hours. This is updated hourly. A list like this will give you unique insight into what is gaining in popularity without being oversaturated.
You can also try the New Releases List. https://www.amazon.com/gp/new-releases. This is another slight variation on the Movers and Shakers. It gives you good insight into new products that consumers are starting to pay attention to.
Sell something you are passionate about
This can also be stated as, “Sell something you are an expert at”. So if you are a Yoga Instructor, chances are you are going to be able to “sell” Yoga Mats better than someone who just chose that product because it’s selling well. As a Yoga Instructor, you have the ability to do personal videos, demonstrating the product with true conviction. Post product demo images on Instagram etc. It’s easy to spot someone who does not have a passion for the product they are selling.
Sell something that customers are emotional about
This means addressing a market where consumers have a keen interest or an intense passion. Find a group that identifies with something. An activity, a brand, a team or even a religion! These are markets where if you can find the right product market fit, you could potentially have a built-in, defined and enthusiastic customer base.
Also look for products that service specific hobbies. Consider someone who plays guitar as a hobby. Most guitar players need strings, picks, maybe sheet music, guitar straps, you get the idea. Pick a hobby and service it!
Lastly and most of all, look for products that solve problems. If you can identify an existing problem with a current customer based and you can identify a shortfall in the current products available, customers will pay just about anything if yours is better.
Follow these criteria to pick a product
- Retail price sells between $20 and $50 (you can stretch it to $75 if it’s really good)
- Fits in a shoe box
- Not easily breakable
- Sellers in the top 5 results have less than 100 reviews
- You can easily find a supplier on Alibaba
- Pitfalls or product issues you can identify from negative product reviews, with current products that can be addressed to make a better version
- Expansion possibilities, can you expand to several related products?
Use a product research tool
There is a lot of competition in the product research space. If you are someone that likes to use software to help you solve problems, buying a subscription to a product research tool may be a good approach for you. These tools generally charge a per month fee but add value by being a time saver and presenting you with the ability to make ddata-driven decisions, as opposed to just going off gut instinct.
Picking a niche product to sell on Amazon can be tricky at best. There is a lot of competition out there, but with a little structure and a few guidelines to abide by, you are bound to find great products to sell. Happy Selling!