What Is a “Niche” On Amazon?
Why Is “Niching Down” Important?
By choosing a smaller niche, you are lowering your barrier to entry. To compete on super competitive products you need to invest large amounts in inventory and advertising, but when you find the perfect niche, you bring great products to markets that are hungry for them.
Don’t get me wrong, many people do very well in broad categories and niching down isn’t for them. But they are playing a different game where their large investments and fancy marketing teams will help them win. If you don’t know where to start on with niche research look at trending products on Amazon. Our friends at AMZScout wrote an article about it which I recommend checking out here.
Amazon Niche Examples
Good Niche Examples
- Horse Riding Equipment
- High End Cribs for Babies
- Accessories for Specific Models of Car, ATV, or DIrtbike
- Eco Friendly Food Handling Items
Notice how I’m very specific but not so specific that there is only one product that would fit into each niche.
Bad Niche Examples
- Cooking equipment
- Sporting goods
Notice how all these examples are much too broad and they all have products that are highly competitive on Amazon. Competing here would take lots of money and resources.
How to Find Niche Amazon Keywords
There are plenty of Amazon keyword tools that can help you identify good niches to sell products on Amazon.
But finding niche keywords is a reverse engineering process. The search volume on Amazon already exists, so it’s up to us Amazon sellers to find out which keyword searches are getting lots of searches, aren’t too competitive, and have room for a brand to enter with higher quality product listings.
We can use the help of Amazon Keyword Research tools to help us track these elusive niche keywords down.
Our friends at AMZ Scout wrote an article about Trending Products on Amazon which I recommend checking out here.
Step 1: Run Broad Keyword Searches
Step 2: Identify The Niche Keywords & Cross Reference on Amazon
Within your search results, comb them for keywords that have a moderate search volume but seem fairly specific.
“French braided hanging wall art” is too specific, but “hanging wall art” might be a good candidate. It’s specific but still broad enough to apply to a wide range of products and higher likelihood of having enough search volume.
But we need to cross reference Amazon search results first. Run a search on Amazon for each potentially good keyword and see what shows up.
- 3+ brands selling $10K+ per month but not more than $30k. Shows it’s a niche that’s not too competitive but has enough sales.
- Most competitors have poor quality listings.
- The average price point is above $20
- Most or all competitors have super high quality listings
- Many sellers have 500+ reviews
- There are lots of unrelated items showing up in search results
Step 3: Use Your Intuition & Do More Research
FInally, once you have a list of potentially good niche keywords, there’s a large amount of what makes a good niche that can’t be put into a simple formula.
Sit down and use your intuition + some Google research to dig deeper and see if this niche will be good to dive further into or not. I like to open up a Notion document and just start writing what’s on my mind. Then I usually will make a pros and cons list, but the most important thing is that you are thinking through everything and tapping into your intuition, because it will tell you things my niche formula cannot!