The Benefit of Niche Amazon Products

If we have one piece of advice for aspiring Amazon sellers in 2022 it is this: “niche Amazon products.” 

Amazon sells more than 400 million products. Even experienced sellers find it a challenge to find a product to stand out among all those millions of other products and, most importantly, make money selling it.

This is why you need to look at low competition niche Amazon products to sell. 

So how do you find niche Amazon products? In this post, we examine:

  • What is a niche Amazon product?
  • How to find niche Amazon products
  • How to determine niche Amazon product profit potential
  • One last thing: improve your seller operations
What is a niche Amazon Product

What is a niche Amazon Product?

A niche Amazon product is a specialized targetable portion of a larger market segment, distinguished by certain preferences, needs, or demands. For example, within the market segment of pet foods, homemade dog bones using only organic ingredients is a niche that targets consumers concerned about nutrition, health and fitness, and/or sustainable farm practices for their pets as well as their own food consumption. 

The advantage of a niche Amazon product is you aren’t going up against bigger players that, because of bigger budgets and broader brand recognition, hold a greater market share. It’s difficult for a new seller to go up against the established competition. This is not to say it can’t be done. But the path of least resistance is to find a category with fewer competitors that you can capitalize on by targeting specific consumers and satisfying their unique needs. And once you establish yourself with a niche Amazon product, you can branch-off into related segments. For example, you might leverage homemade organic dog bones to such niches as organic homemade cat treats, homemade organic cat pâté, homemade additive-free sweet potato, and rice stew for canines…you get the drift.

While not an absolute necessity, it helps if a niche Amazon product is something you are passionate about. If you aren’t interested in healthy and organic products and/or don’t like pets, you might want to explore a different niche Amazon product than homemade organic dog biscuits.  

How to Find Niche Amazon Products

Just defining a niche Amazon product isn’t the same as finding a niche Amazon product to target that is potentially profitable. You might very well find, for example, that the homemade organic dog biscuit niche is actually crowded with Amazon competitors. But if you drill down a bit, no one is making homemade organic dog biscuits that smell like human armpits (a smell that apparently gets a highly positive response from dogs). 

Of course, the next question is that just because no one is making homemade organic dog biscuits that smells like people’s armpits doesn’t necessarily mean there is any market demand for it. Or that you could somehow stimulate demand for it. Or, for that matter, that dogs necessarily prefer the smell of humans in their food, as opposed to smells of food they like to eat. 

How to Find Niche Amazon Products

To find out, you have to perform market research. Google is, of course, a “go-to” resource.  

Start your search with a broad topic, i.e., homemade organic dog biscuits. Then narrow your results by asking, for example, “Why do some owners prefer organic dog biscuits?” Maybe you find out that dog owners who prefer organic dog biscuits for their pets generally prefer more healthy products. Okay, but how many of these dog owners are also concerned about fussy eating habits?  Aha, maybe these dog owners are afraid their pets aren’t eating enough, that the dogs don’t like organic homemade treats but, how infuriating, the dogs actually prefer the mass-produced stuff.

So what ingredient could make a homemade organic dog biscuit that contains something that really, really attracts dogs. Maybe it is the smell of human armpits. No one else is selling that. Then you have found a niche Amazon product that could address the specialized needs of owners who want to feed their dogs better quality treats, but whose pets literally turn up their noses at most homemade organic dog biscuits.

Note that you shouldn’t rely solely on Google search results. Other online tools and communities to investigate include: 

  • Facebook 
  • Instagram
  • Reddit
  • Quora
  • eBay

There are also a variety of third-party software packages designed to extract data from Amazon for keyword research, sale volumes and pricing, and competition profiles among the product categories carried on Amazon.

How to Determine Niche Amazon Product Potential

How to Determine Niche Amazon Product Potential

One way to assess whether your niche Amazon product has profit potential is to look at your competitors. In all probability, it is unlikely you’ll uncover a niche Amazon product nobody else has thought of. You could, in which case, look at competitors in similar niches. (For example, there are no homemade organic dog biscuits with a human armpit smell, but there are chicken flavored homemade organic dog biscuits for fussy eaters.)

Here again, Google and other search engines, online communities, and third-party software can help you perform competitive research. You want to look at such criteria among your competition as: 

  • Product sales and net profits
  • Search trends
  • Customer reviews
  • Affiliate marketing earnings
  • Watched item counts

Helping You Achieve Success with a niche Amazon Product

Once you determine a niche Amazon product niche and arrange to manufacture it, the next step is to stock it. FBA (Fulfillment by Amazon) offers a number of advantages, primarily that Amazon does all the heavy lifting for you in terms of order fulfillment. 

There are some disadvantages, not the least of which is that you have to monitor Amazon inventory reports to ensure you are properly credited for refunds and errors in handling your inventory. All of which takes time away from your market research into the next niche Amazon product you are thinking of selling.

Consider using GETIDA, instead. Our auditing software keeps track of your Amazon FBA inventory transactions, refunds, seller data analytics, and FBA reimbursements easily and clearly. Equally important, dedicated case managers with Amazon experience follow up on FBA reimbursement claims on your behalf to help ensure you get back what you are owed.

$400 in Free Amazon Seller Refunds with GETIDA.