Are you thinking about starting an Amazon business? Maybe you have a product idea in mind already, but you want to know if it will sell well before stocking up on inventory.
With spring and summer around the corner, you’ll want to look for items that are popular during those seasons. We’ve identified a few product niches that our data shows will be in high demand this spring and summer! But first, let's start with a few basics on identifying profitable product niches on Amazon.
How to generate ideas
There are literally millions of products that you can sell on Amazon, so trying to narrow your choices down to just a few can be pretty overwhelming. Luckily, there’s a simple way to create a shortlist of profitable items.
AMZScout’s Product Database has 44 search filters that make it easy to find products that meet all of your criteria. These include estimated monthly sales, number of reviews, price, weight, category, and more. First, you’ll need to define your requirements. Here are our recommendations:
- Monthly sales: Over 300
- Reviews: Less than 200
- Price: $30 - $70
- Weight: Less than 5lbs
Add these to the Product Database’s filters, along with any other criteria you’d like to include, and then click “Find Products.” Review the results and pick out 3-5 products that you’re most interested in selling.
Validate your product ideas
Once you have a list of potential products, it’s time to do a deep dive into their metrics to see if they will be profitable. For this part of the process, you’ll need an in-depth product research tool, like AMZScout’s PRO Extension.
Here’s how this tool works:
- Install the AMZScout Pro Chrome Extension.
- Go to Amazon.com and search for one of the items you found using the Product Database.
- When the results come up, click the PRO Extension icon in the top right corner of your browser to open the extension.
- Review average sales, reviews, and price, along with sales trends, niche scores, and more.
Here are a few things to pay close attention to:
Average monthly revenue
This is how much money you can expect to make each month (before expenses) based on the average price and sales of the product. Obviously more is better, but items with a high average revenue are usually more competitive, so keep that in mind.
Average net margin
This number refers to the percentage of your revenue that you’ll be able to keep as profit.
It’s recommended to aim for at least 50%. If an item has lower monthly sales, you’ll want your margins to be higher, but if a product has a higher number of monthly sales, that can make up for lower margins.
This is a measure of how many other sellers have found this niche, making it a great way to assess the competition.
Ideally, you’ll want to have a score in the 1-3 range. This means very few other sellers have discovered the niche, which makes it easier for you to become a top seller in it.
This score represents the overall profitability of the niche, based on profit margins, demand, and competition. Click on the score for a more detailed breakdown.
You’ll see individual scores for each category, as well as the pros and cons of the niche. Ideally, you’ll want an overall score of 7 or higher. This means a niche checks all the right boxes and should be profitable.
Finally, you’ll want to look at the niche history to see how the items have sold over the last two years, and how they perform in each season. Here are a few things to look for:
- Is the niche trending up? This could mean your sales might improve in the future.
- Is the niche trending down? The niche could be at the tail end of a fad, meaning sales will drop.
- Does the niche only sell well during certain times of the year? While we’re looking for products that sell well during the spring and summer months, we’d like them to sell well during other times of the year as well.
Look for sales that have been consistent over the last few years. Fast growing sales are good as well, although that could indicate a temporary fad that might fade over time.
Have you found a niche product that you want to sell, but need a supplier? If you use the Pro Extension, finding a supplier is easy. Just click the “Search Suppliers on Alibaba.com” button to see suppliers that offer those items on Alibaba.com.
Filter suppliers by price and minimum order quantity to quickly find the ones that work with your budget.
Popular niches for spring and summer 2021
You now know how to identify the most profitable niches and have access to all the tools you need to find winning products. However, if you’re looking for a little more help, we’ve found a few niches that should be good choices to sell this year during spring and summer.
Here are four niches to consider this year:
Kayak wind sail
This niche has a lot going for it. It has a solid monthly revenue of almost US $4,000, its price is right in the sweet spot, average reviews are relatively low, sales margins are good, and the visibility score is just one. The sales trends clearly show this niche sells well in the spring and summer, so now is a great time to start selling it.
Nylon bicycle cover for outdoors
Average revenue for this niche is high, which is good. While the price is a little lower than what we generally look for, the high margins and monthly sales make up for it. The great thing about these products is they appear to sell well all year long. So, even after spring and summer are over, this niche should continue to make you money.
Toilet seat decals
With a monthly revenue of over US $10,000, this niche definitely has the potential to make you a lot of money. The sales margins and price are a little below what we usually look for, but the high monthly sales mean this is still a very profitable niche. Sales were trending up in 2020 and are remaining steady in 2021, so this trend should continue into the spring.
Emergency thermal blanket
With a very impressive monthly revenue of over US $20,000, this is definitely a niche to keep your eyes on. The high revenue is due to the high sales, which exceed over 1,200 a month. Sales have remained steady for the past two years. It’s also a great accessory for hikers and campers, making it a good choice to sell during spring and summer.
Start your journey with product research
Before you go looking on Alibaba.com for your next great Amazon product, make sure you do proper research to find the very best niche for your business. You can start with a free AMZScout trial and check out the emergency thermal blanket or other product potentials for yourself.
This week's #B2BTuesday Tip:
When deciding on a product to sell, make sure it solves a problem. The product doesn’t need to be overly complicated. You simply need to identify a problem and solve it, bringing value to your customers’ lives.