Niche Research: Finding Profitable Wholesale Products for Amazon FBA

Starting a successful Amazon FBA business allows both new and seasoned entrepreneurs to streamline operations and make money quickly. But to break through in a congested marketplace like Amazon, you’ll need unique and in-demand products to set you apart.

That’s where niche research comes into the equation. Investing time in niche research will help you identify spots in the market that could use your influence. You can choose profitable wholesale products you know will score sales from there.

What is Niche Research? Why Does it Matter?

When we discuss “niche research,” we’re describing the process that allows sellers to determine which niche(s) make the most sense to enter. 

A niche is any specific market that may appeal to a certain audience. The beauty niche, for instance, might include skincare products, cosmetics, hair accessories, and more.

Niche research is critical to keep up with current and future Amazon trends because Amazon’s marketplace is constantly changing. Likewise, some niches are so competitive that entering as a new seller may be a recipe for disaster.

Overall, niche research helps you figure out where you’re likely to sell products. It also helps you decide which products to choose when it’s time to select your inventory.

Key Components of Niche Research for Amazon FBA

As you prepare to complete niche research, it’s important to keep crucial factors like those in the back of your mind.

• Demand: The higher the demand for a product is, the likelier it is to sell. However, on the flip side, the more demand there is, the more competition you might experience. Look for niches with decent demand but low supply; these are ideal markets to target. You can use research tools that analyze customer demand and sales statistics, or you can conduct some simple research using Amazon’s search tools. 

• Product Features: The size and weight of your product will affect its storage and shipping costs. Keep this in mind as you choose a niche. Selling something like toys may end up being more cost-effective than selling large electronics.

• Seasonality: Some niches and product sales fluctuate based on seasonal demands. For instance, toy sales generally go up as winter approaches due to the high concentration of holiday gift buys happening during this time. 

• Profit Margin: Consider the cost of your potential product, how much you can sell it for, and other financial factors like fees and shipping expenses. Make sure you strike a good balance between them all to sell effectively and turn a good profit. 

How to Conduct Niche Research for Profitable Products

With the basics under your belt, you’re ready to move on to true niche research. Follow the steps below to make things quick and easy.

Scope Out the Market

Take a look at the market you’ll be entering to get a feel for how to maximize your strategy. 

You can use Amazon’s Best Sellers list, market research tools, and even Google to determine what shoppers want. 

From there, you can view competing listings to check out customer reviews and spot any gaps in the market. Pay close attention to details like Amazon keywords to create your ideal recipe for success.

Determine Profit Margins

You can estimate your potential profits using Amazon FBA’s revenue calculator before you begin selling. 

The great thing about wholesale deals is their affordability; you can buy enough of a product to sell hundreds without breaking the bank. Plus, the less you spend on each individual item, the higher your overall profit margin can be. 

Test it Out

If you’re able to, it’s smart to double-check your plan by conducting small test orders of your product. Try launching your idea on the market to see how it performs, then adjust accordingly.

Final Thoughts

Niche research will help you identify which wholesale products will be most profitable for your Amazon FBA business. 

No matter which niches you decide to enter, NexDeal has the daily wholesale deals you need to stay ahead of the game. 

You can count on the entire team at NexDeal Distribution to help you find the wholesale merchandise that makes sense for you. Reach out to us today to learn more about our services.