Best Niche For Amazon FBA
1. Books – Yep, the Kind Made of Paper and Ink
Raise your hand if you’ve heard the death knell of books before. If it wasn’t Kindle, it was some variation of the iPod/iPad/iPhone. But guess what? Books are more popular than ever. It’s how Amazon got started, and how you can carve out a profitable niche on the marketplace.
Simple: a huge profit margin. If you can pick up books in bulk for a dollar or so, give or take a bit in either direction, you can turn around and sell them on Amazon 1000% of their original price.
While this isn’t a sure-fire formula all the time (see: unlucky arbitrage times, like a big box clearance sale) and you probably shouldn’t base your entire business on this premise if your goal is to maximise revenue, it most definitely deserves its own solid corner in your shop.
2. The Population Keeps Growing, and That Includes Things for Babies
Our next profitable Amazon category is babies. As long as humans are procreating, their progeny will need, for lack of a better word, stuff. And because babies don’t stay the same size for very long, this means they need a lot of stuff. The bonus of selling baby items is they’re inexpensive for you to pick up, lightweight, (fairly) durable, and always in demand.
Pro tip: market to first-borns because parents to spend more on them (if you’re a middle or youngest sibling like myself, you’ll know how true this is).
3. All That Glitters Just Maybe Gold
Gems, baubles, precious metals — what these jewellery items have in common is they’re consistently in hot demand. But…you’ve got to be super diligent in how you advertise your wares because the market is pretty saturated with jewellery.
While the profit margin can be a staggering 50%+, it’s only if you can take advantage of unique long-tail keywords. If your items can only be described in generic single-ish keywords, don’t bother. You’re competing against far too much.
4. Exercise Clothing for All Those New Resolutioners
I enjoy being active and I’ve played a ton of sports growing up. I’ve also learned the hard way that just buying the clothes doesn’t make me good or diligent at a particular activity. But shh, don’t tell the rest of the world that!
Workout wear is one of the hottest sellers on Amazon, and you can easily take part in the craziness. As a bonus, most people want to buy their clothing new (can you imagine ordering a pair of used sweatpants? Eww!), so you can increase the profitability even more.
5. Electronic Items and All Their Accessories
As antithetical to the idea of books being hot sellers on Amazon as electronic items, you should really start stocking up on these yesterday. People love their techy gadgets and what’s in it for you is:
- The lower of Amazon’s commission fee (8% versus 15%)
- A plethora of choices and subsets within each category
- A variety of new devices coming out all the time
- Different ways of appealing to different audiences based on the brand name, even though they all do essential
Make it Big on Amazon: The Winning Principle
There are multiple criteria to take into account when selecting a product to sell on Amazon.
Because of the high competition and so called “saturated market”, most Amazon gurus would tell you to sell a super niche product that has some demand and low competition like for example, red cat shaped chopsticks for kids.
Sure you can make a few hundred of dollars with a niche product but you are limiting your growth.
What you need to understand is that high competition = high demand and money to be made.
So instead of pigeonholing yourself in a small niche with limited growth potential, choose an evergreen product (ie: product with consistent demand) that has a high demand and position yourself in a different angle than your competitors.
One of the best ways to find gaps in the market is by reading your competitors’s reviews to learn more about your target audience and understand what they like and don’t like.
Here are the different ways you can differentiate your product:
Everyone loves peanut butter (Unless you are allergic to it)
You would think that peanut butter is saturated.
Check out this peanut butter brand for example.
They differentiated themselves by selling peanut butter in powdered form.
According to Helium10 Xray, this product is making around 88,000$ per month in revenue in a so called “saturated market”
For example, this brand is selling tea bags tailored to women with PCOS and hormonal imbalances.
The entire branding of this product is tailored to women with PCOS.
So if a woman that has PCOS sees this product, it will definitely grab her attention and make her want to buy it.
This is another example of how this journal differentiated itself by targeting boys age 8 to 12.
A design upgrade includes the shape, packaging, color or size of the product.
For example, double wall glasses have been very popular in last few years.
The one on the left is the classic one you find everywhere.
The one on the right find a way to differentiate by creating a unique design.