- Introduction
- What exactly is a “Niche” on Amazon?
- Top 5 Most Profitable Categories for New Sellers
- How to Find Out What is Selling on Amazon (The Manual Way)
- Using an Amazon Niche Finder (The Digital Way)
- Red Flags: Niches to Avoid
- How to Build a Brand Around Your Niche
- Final Thoughts: Taking the Leap
- Frequently asked questions
Introduction
Creating an Amazon FBA (Fulfillment by Amazon) business is one of the most thrilling opportunities these days to earn money online. But even before you’re able to ship out your first box to an Amazon warehouse, you have to tackle the most difficult question of all: What should I actually sell?
Choosing your FBA your niche is everything you can build on. Choose a niche that is too crowded, and you will be decimated by big brands. Choose one that’s too small, and you won’t be able to make enough sales to pay for your coffee. The mission is to find that “sweet spot”, a corner of the market in which people are interested in buying but options are limited.
In this guide, we’re going to walk through the most profitable categories, how to use an Amazon niche finder strategy, and how to spot niche markets on Amazon that others are missing.
What exactly is a "Niche" on Amazon?
Before we dive into the lists, let’s get clear on what we mean. A niche isn’t just a broad category. “Pet Supplies” is a category. “Reflective cooling vests for senior dogs” is a niche.
When you focus on a specific niche, you aren’t trying to sell to everyone. You are trying to be the best solution for a specific group of people. This makes your marketing easier, your Amazon niche products more relevant, and your chances of ranking on page one much higher.
Why Your Niche Choice Matters More Than Your Price
Many new sellers think they can just find a winner product, drop the price by a dollar, and win. That’s a race to the bottom. Amazon success is about differentiation. You need to find a space where you can offer something slightly better, prettier, or more functional than what’s currently available.
The “Goldilocks” Criteria: What Makes a Niche Profitable?
When you’re looking for amazon niche products, you want them to fit certain criteria. If they meet these “Goldilocks” rules, your life as a seller will be much easier.
- Price Point ($20 – $70): This is the impulse-buy range. Anything cheaper than $15 makes it hard to profit after Amazon fees. Anything over $100 makes customers think too hard before clicking “Buy Now.”
- Small and Light: Amazon’s storage and shipping fees are based on size and weight. If your product fits in a shoebox and weighs less than 2 pounds, you’ll keep a lot more of your profit.
- Low Seasonality: You want a product that sells in March as well as it sells in October. Stay away from things like “Christmas tree ornaments” unless you want to work only two months out of the year.
- High Demand, Low Competition: This is the Holy Grail. You want to have thousands of searches a month, but only a few competitors with more than 500 reviews.
Top 5 Most Profitable Categories for New Sellers
While you can find gold in almost any category, these five have historically been the best for finding niche markets on Amazon.
Home & Kitchen
This is the “Old Reliable” of Amazon FBA. Whether it is silicone spatulas or organizational bins, they are in constant search of something to upgrade their home.
- Why it works: It’s an enormous category with countless sub-niches.
- Niche Idea: Aesthetic coffee bar accessories, organic kitchen storage.
Pet Supplies
We spend more money on our pets than we do on ourselves. The pet category remains robust even in a recession.
- Why it works: High “emotional” buying. People want the best for their “fur babies.”
- Niche Idea: Orthopedic beds for specific large breeds or portable cat travel gear.
Baby Products
Parents (and grandparents) make up some of the best customers. They want to feel secure, convenient, and comfortable.
- Why it works: Constant “new” customers entering the market every day.
- Niche Idea: Organic cotton nursery decor or sensory toys for toddlers.
Health & Household
This category is great because it often involves “replenishables”—products people buy over and over again.
- Why it works: High repeat customer review rate.
Niche Idea: Natural laundry scents or specialized ergonomic office supports.
Office Products
With more people working from home than ever, the demand for home office upgrades has exploded.
- Why it works: Professionals are willing to pay for quality and productivity.
- Niche Idea: Standing desk cable management or stylish desk organizers for small spaces.
How to Find Out What is Selling on Amazon (The Manual Way)
You don’t always need expensive software to find your FBA niche. Sometimes, the best data is hiding in plain sight on the Amazon website.
The “Best Sellers” Method
Go to the Amazon Best Sellers page. Don’t look at the #1 product—everyone is trying to sell that. Instead, click into sub-categories. Keep clicking until you are three or four levels deep (e.g., Home & Kitchen -> Kitchen & Dining -> Coffee, Tea & Espresso -> Milk Frothers). Look at the products ranking #10 through #50. Are they simple? Could you make them better?
The “Movers & Shakers” Page
This page is updated every day to show you the Products that have increased in sales rank the most over the past 24 hours. It’s a great way to spot “micro-trends” before others catch on. When you start to notice the same kind of product showing up multiple times, you might have found a trending amazon niche..
The Search Bar “Auto-Fill”
Start typing a broad term into the Amazon search bar, like “Yoga mat for…” and see what Amazon suggests. Those suggestions are based on real things people are searching for. If Amazon suggests “Yoga mat for hot yoga extra thick,” that is a specific niche demand you can fulfill.
Using an Amazon Niche Finder (The Digital Way)
As much as I recommend the manual way, using a amazon niche finder is crucial to saving you weeks of research for amazon. You can see the “behind the scenes” data with these tools.
- Look for “Revenue vs. Reviews”: You want to find products making $5,000+ a month but with fewer than 100 reviews. This tells you the demand is high, but the “trust barrier” (reviews) is low enough for you to break in.
- Search Volume: A good niche should have a combined search volume of at least 10,000 searches a month across its main keywords.
- Opportunity Score: Many tools give a “score” to a niche. While these aren’t perfect, they are a great way to quickly filter out bad ideas.
Red Flags: Niches to Avoid
Not every profitable-looking niche is a good idea. Some are “seller traps” that can get your account suspended or eat all your money in returns.
- Electronics: They have a high “defect rate.” If 5% of your products arrive broken or stop working, your profit disappears, and your reviews will tank.
- Highly Competitive “Goliaths”: Forget selling a generic “iPhone case” or “Yoga mat”. You’re up against brands that have multi million dollar budgets.
- Products with Patents: Always check for patents. If you sell a product that looks exactly like a patented design, Amazon will shut your store down in hours.
- Clothing and Shoes: The return rate is massive because of sizing issues. Stick to “one size fits most” items when you are starting.
How to Build a Brand Around Your Niche
Discovering amazon niche products doesn’t stop there. To really make it big, what you want is to create a brand. Instead of going for that random one-time-sale, consider what else that same customer might purchase.
For example, if you sell a “Yoga mat for hot yoga,” your next product should be something like “Microfiber yoga towels” or “Yoga mat carrying straps.” You build “Brand Registry” power on Amazon by sticking with a niche. That way, you can set up a “Storefront,” and look more like a professional brand rather than some random reseller.
Final Thoughts: Taking the Leap
The perfect FBA niche can seem like a needle in a haystack, and it is kind of puzzle. “Once you start connecting the dots, demand, competition, shipping costs and profit margins it starts coming together,” he said.
And don’t get caught in “analysis paralysis.” Choose a category you are even remotely interested in, use the free tools of ebay to tinker with the numbers and look for how you can be 10% better than what currently sells best.
Ready to start your hunt? Begin by examining your own recent Amazon orders. What did you a recently purchase that felt “cheap” or like it should have been better designed? That could be your first million-dollar niche.
Frequently asked questions
1. What is the most profitable niche on Amazon right now?
Currently, Home & Kitchen and Pet Supplies stand as the best for new sellers in terms of profitability. But the fastest growing is “Eco-friendly” and “Sustainable” versions of everyday products. People are even willing to pay a little more for things that aren’t made of plastic or have been recycled.
2. How do I find a niche with low competition on Amazon?
The key is to find “high search volume” and “low review counts.” Step 3: Use an amazon niche finder tool to exclude keywords that get more than 2,000 searches a month where the top 5 sellers have under 150 reviews. That suggests that customers are looking for something but aren’t thrilled with the current options.
3. Is Amazon FBA still profitable?
Yes, but it is more professional now. You can no longer just “buy cheap and sell high.” You have to provide value through better packaging, better design, or a more specific niche. The sellers who treat it like a real brand—not a “get rich quick” scheme—are still making significant profits.
4. How much money do I need to start in a niche?
A safe budget starting range for most amazon niche product is between $2,000 and $5,000. This includes your first run of inventory, shipping to the Fufillment center, professional photos, and some early advertising (PPC) in order to obtain you first few sales.
5. Should I sell trending products or evergreen products?
Evergreen is almost always better. Trends (such as fidget spinners) can fall out of favor fast, and you may find yourself stuck with a garage full of unsellable product. Evergreen products (such as kitchen gadgets or baby items) sell throughout the year, and they can give you a predictable income.