Amazon is the largest e-commerce platform in the world. It has more than 300 million active users and 45 million products offered by third-party sellers. If you listen regularly to this podcast, you may have been selling on Amazon yourself for quite some time.  But many Amazon sellers struggle to get sales. Of those that do get sales, many fight to get mediocre profits. Even 7 figure sellers I work with have this challenge. The solution? Become a category king and dominate your niche! Before we dive into how to find a niche on Amazon, let's discuss what a profitable niche on Amazon is.

A niche market is a market that focuses on a specific category or even single product type. There are many reasons why you should consider niching down if you want to increase sales and profits.
In the US, the e-commerce market was valued at $601.75 billion in 2019 and is projected to reach $735 billion by 2027.
Looking to get into the online retail game? Or increase your reach? Amazon is the place to be. But first, you'll have to find your niche—the sweet spot that gives you a competitive edge and makes you stand out from the crowd.

You could go after a big category like "home goods," but if you're not big enough or well-known enough for them yet, it'll be difficult for you to compete against established brands like Home Depot or Lowe's. Instead of jumping into an already crowded market, consider going after an underserved niche where there's less competition and fewer sellers competing for search engine visibility.
How Big Retailers Know Which Category will be Profitable?
The truth is that nobody really knows why some categories are more profitable than others. There is no magic formula or algorithm to finding a profitable niche on Amazon and becoming your "category king." But there are some things you can do to increase your chances of success.

Know Your Customer: The first step in any business venture is understanding who your customers are, what they want, and how much they're willing to pay for it. When searching for a profitable category I like to use tools like Helium10 so that I can see what people are searching for before entering into the market space as well as how much competition exists within each individual keyword phrase (and what keywords potential competitors might be using). This gives me an idea of whether or not this specific niche has enough demand from consumers while also keeping me away from areas where there isn't enough demand but still plenty of competitors in place already.

To Do This Well You Need to Understand How Consumers Shop Online.
To do this well you need to understand how consumers shop online. Amazon shoppers are no different from other shoppers. They like quick and easy, so they want to find what they're looking for as quickly as possible.

Once you've done the research, it's time to niche down even further. If you choose a product category with too many competitors, it will be hard for you to compete successfully against them because there's not enough room for all of your listings on page one of Amazon search results (and that's where most customers start).

You can use a tool like JungleScout that helps with finding profitable niches on Amazon by analyzing their data and giving insights into which products have good demand potential based on estimated sales volume per month or year over time - this way it will be easier to find those products that might perform better than others within certain categories or subcategories which tend not only sell better but also rank higher in terms of overall search performance due mostly due increased visibility among consumers who aren't aware yet about what exactly they want most urgently at any given moment when looking up something specific online (like "men's watches").
How to reach out to consumers
If you're a consumer, and you're looking for a solution to your problem, where do you go? As the top 20% of consumers will have already ...