Do you want to avoid stiff competition with oh-so-popular products? Consider entering a niche with these top tips and see how it is different from the mainstream!

For people wishing to fulfill their business-oriented goals, opting for Amazon seems to be a reasonable choice. The platform entertains nearly 200 million visits per month by customers from all over the world, making it the biggest and most profitable e-commerce website.

However, this also means the competition here is cutthroat, where up to 10 million sellers are vying for the attention of shoppers.

So, what can you do in this situation?

Easy enough, let’s go for a niche! Tapping into the potential of lesser-known markets allows you to make the best out of Amazon while still avoiding the hassle of the more dominant ones. Keep reading to find out how!

What Is A Niche?

A niche refers to a small section of a much bigger market, whose focus is placed specifically on a group of factors like locations, ages, occupations, interests, demographics, or problems.

For example, smartphones constitute a broad market, while phone cases or chargers are sub-markets. Or, if we consider supplements as a broad market, then its sub-market would be supplements designed for pregnant people.

The idea behind a niche is to target a particular segment of customers, as their needs tend to slightly differ from what the mainstream market has to offer.

Imagine you are a person with sensitive skin, and you react badly to the chemicals present in beauty products. But one day, you happen to stumble upon handmade, natural items that solve your issue.

As you can see, the general market cannot satisfy all of its customers, leaving plenty of room for aspiring businesses to step in. Not only is landing sales less challenging, but you also have a chance to sustain customer loyalty.

How To Find A Profitable Niche On Amazon (5 Methods)

1. Stay away from seasonality

There are niche products that bring back great money for you, but not all year long. It might be tempting for your store to sell only Christmas decor or candy Easter eggs, but once the holidays are over, the demand will drop dramatically. Subsequently, you suffer from a low conversion rate and little revenue for months before the season kicks in again.

Therefore, it is better to stick with products that appeal to customers regardless of time. You can consider scented candles, pet accessories and clothing, gaming gears, household appliances for renters, laptop holders, etc.

That being said, you should not discard highly seasonal products right away. There are special holidays and shopping seasons when Amazon consumers are more than happy to spend extra money.

Feel free to add a few additional products that customers can put in their cart after finishing their main shopping tasks. These products serve better as a way to upsell the order, and by no means should you rely on them for a stable turnover.

2. Create an acceptable profit margin

Selling a niche means you have an edge in terms of pricing, as your target audience usually has fewer choices to choose from. Thus, you can be a bit more flexible when reaching for a moderate or high profit margin.

Do not forget to take into account the costs involved, including the delivery fees, vendor fees, Amazon PPC marketing budget, storage rent, etc. Make sure the resulting margin is at least 20% so you can actually earn money.

Another reminder here is to look for the price points. If they are too low, you are under pressure to sell as many as possible for the profit to be substantial. So, you might want to drop anything under a few dollars and focus on products that cost at least $10 and above.

3. Analyze the competition

The biggest advantage of selling a niche is the lower competition rate. But do not let yourself be fooled into the notion that all your target audience will flock to your store.

There will always be someone offering the same products and aiming at a similar section of customers. Hence, a comprehensive competitor analysis is required to ensure you understand how the market share is arranged.

Look for any retailers with solid resources and see how their catalogs vary from yours. Study their pricing, ad copy, imagery, customer reviews, ad placement, etc. These valuable insights help you become more aware of their strengths and weaknesses.

From there, adjusting your business to maximize the unique selling points and minimize any downsides would be effortless.

4. Consider the demands

For a store to generate regular orders and enjoy a stable income, there have to be constant demands from customers. If a market is too niche, you might end up not having enough sales to sustain the business.

Vice versa, too high demands means other sellers also see the possibility for achievement and jump in as well. You need to find a balance between these two ends and devise listings that fulfill the needs of buyers.

5. Talk to niche communities

If it is too difficult trying to come up with a niche product on your own, why not ask the insiders’ opinion? There are various forums, websites, Youtube channels, Discord chats hosting hundreds of discussions from their members.

By infiltrating these groups and listening to what people talk to each other, you can have a fresh perspective into the products that might become useful for them.

For example, if you join a group of pet owners, you are likely to hear them complaining about their pets running around and getting lost. Is there any device that helps them solve the problem? A pet’s GPS tracker!


Once you have found the perfect niche market, make sure to reach out to potential customers and notify them of your emergence.

In case you have no idea how to advertise lesser-known products properly, visit right away. The team of professional digital marketers is more than willing to assist you and provide tailored advice for every step of your journey!

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