3 Most Profitable Niches for First-Time Amazon FBA Sellers
It’s Brian from the Zab Twins, back with a comprehensive guide on how to hunt for the perfect niche on Amazon, especially if you’re a beginner. As per the 2020 report by Amazon, FBA benefits more than 450,000 third-party sellers across the globe, increasing their sales by 34%. However, while it’s a quick way to become an entrepreneur, there are some challenges you might face when selling on Amazon.
But before we dive into the topic, we know you must be wondering who we are.
Right? Well, my brother Arek and I help new sellers successfully launch their businesses on Amazon. We are the perfect mix of creativity and analytic skills. I am the creative genie who offers clients the best sales strategy and marketing advice, while Arek ensures you don’t go off track by helping you make strategic business decisions. Combined, you get a powerful duo of professional coaches ready to help your business skyrocket.
Now that’s out of the way, let’s get down to business:
The Best Amazon FBA Niches for First-Time Sellers
If you’ve spent any time researching best-selling products on Amazon, you’ll learn that it’s like finding your way out of a labyrinth. Just when you think you’ve found the perfect product, you’ll run into a dead end or realize it’s a false lead.
You’ll experience excitement followed by disappointment and frustration. You’ll think, “Aha! I found a high-demand product,” only to discover it has little to no customer base. And that’s precisely why 47% of Amazon sellers agree that finding the perfect product to sell is tricky.
But the good news is it’s not impossible! In fact, 63% of Amazon FBA sellers achieve profitability within one year of launching their business. That could be you too, yes!
As a new seller, you’ll want a product niche that:
- Helps you stand out
- Enables you to niche down
- Saves you time
Yes, the third point is crucial. Getting started on Amazon as a seller and launching your first product can take a lot of time. Therefore, you must choose a category that saves you the trouble of getting unnecessary certifications, liability insurance, etc.
If you’re ready to become an Amazon seller, we recommend you invest in a high-quality tool designed to help you, such as Helium 10. It will help you hunt down a profitable niche and assist you in keyword research to start selling in less time and more effectively.
But here, we’ve also created a list of the top three most profitable Amazon FBA niches that check off these three requirements. Let’s get started!
Psst...not a reader? You can visit our channel and watch the video format of this article here.
Category # 1: Home and Kitchen
Raise your hands if you’re searching for a broad topic with high demand. Then the home and kitchen niche is perfect for you.
This category is ideal for first-time sellers because you can easily find sub-niches that increase your potential for steady demand and sales. For instance, you can find a niche by focusing on home décor, patio essentials, or kitchen-based goods.
In addition, choosing this category allows you to enter a safety net. How? Let’s say you start selling home gardening products but can’t find any customers. So, you can pivot to a different sub-niche without changing your brand name.
In the long run, you’ll want to start selling your product to a specific buyer by creating your ICP. But throughout your journey, you’ll have the peace of mind that if a product doesn’t do well, you can always pivot to find the right path to success.
Category # 2: Arts and Crafts
What do paints, gems, and calligraphy pens all have in common? They allow you to carve out a profitable niche!
We often recommend this category to new sellers because it enables you to hit a buyer’s needs successfully. Here’s the thing: a customer will choose your product only if it meets one of two things:
Thus, by providing the “pleasure” the art enthusiast seeks, you not only offer an excellent customer experience, but you can also retain them.
Another great thing about choosing this niche is that you’ll find a diverse range of products to sell without taking any extra steps. For instance, you can offer an arts and crafts kit or up-sell the different components separately.
Category # 3: Tools and Home Improvement
Home improvement has grown exponentially since Covid-19 as homeowners spent more time and money on home improvement projects. While you might be thinking about DIY kits and repairs, the appeal to customers in this niche is organization.
Now the reason this niche blew up is that homeowners “finally had the time for it.” Meaning people had more time to revamp their homes to match their tastes.
But that’s not the reason this niche is so popular! The organizational sub-niche primarily attracts many buyers because you can’t find as many options in-store. If you walk to your nearest home improvement store, you’ll only find mediocre closet organizers and racks. But on Amazon, you’ll find unique products that serve both pain and pleasure.
No one enjoys coming home from work to find the house looking like a storm just hit. But with Amazon, homeowners can discover organisational products that help avoid a mess in a brand new way.
If your goal is to be the next Amazon success story, the first step you need to take is finding a profitable niche with low competition. By selecting a niche, you'll be able to outsmart your competition.
The three niches that we’ve discussed are the most in-demand products. Besides, you can find a wide range of manufacturers on websites like Alibaba having unique and innovative collections in these categories. But don’t forget: the secret to success is to dominate your niche.
Now it’s your turn to find the one that is perfect for you!
If you’re still confused about how to get it right, you can schedule a call with us – the Zab Twins. Besides, our YouTube channel gives free access to real-time actionable tips and quick hacks to help you grow your Amazon FBA seller account in no time!