Edit: I was planning to write a post about finding a good Amazon niche in one hour. However, I had to reset the timer a couple of times because the first few products I found I considered a bit too good, so I will be selling them myself.

What is up guy! I haven’t done one of these in a while, and I am getting a lot of questions from people who want to know if my tactic for finding Amazon FBA niches still works in 2024.

So today I will give you a complete overview how I find Amazon product niches!

Niche Requirements

Let’s first define a good niche. There needs to be enough demand in the niche for it to be worth my while, so I will be looking at products with at least $3k monthly revenue.

I also want to be easily able to compete and rank my own product in the niche, so we want a niche with somewhat low competition. I will determine this by looking at how many products on the first page of the niche have less than 100 reviews.

Since I am not an expert at product design and sourcing, I want to look for something that is easy to manufacture. This means nothing electronic or products with a lot of components.

Lastly, I want to ensure there is enough profit margin on the product I will sell. Since I know from experience that it is rather hard to find low-priced items with enough profit margin, I will be looking for items that are at least $20 and have a minimum payout of $10.

Tools to use for product research

Now, let’s get into the fun stuff of product research: Product Research Tools!

I use Jungle Scout as my main product research tool. In my opinion they are the most accurate at estimated product demand and have the biggest product database! So they are the market leader for a very good reason.

However, you also have plenty of other options that will work as well. Such as: Helium 10, AMZ Scout, Viral Launch & more.

I also like to keep track of all my findings in a product research spreadsheet.

Let’s start!

So we will be using the Jungle Scout product database. First we have to enter the country we are targeting. US in my case but they offer support for all Amazon countries.

Then we want to select the categories we want to look in. When selecting my categories I take into account my niche requirement: Easy to manufacture products. So I will not be selecting categories where you will mainly find products that are hard to manufacture. Such as: Camera & photo, Computers, Electronics, etc.

Next up, we enter our filters. Here, we can enter the other niche requirements we have set:

Minimum Price: $20
Minimum net: $10
Minimum Revenue: $3000 per month
Maximum reviews

After scrolling through the list for a couple of minutes, I came noticed this product: Expanding Hanging File Folders

Let’s pull up the Jungle Scout Extension for the search term: Expanding Hanging File Folders

Now let’s see if this niche fits our checklist:

Demand

Requirement: Minimum $3k revenue per month

Check!
All products in the top 10 have more than $5k revenue per month. The top seller is even doing $32,000 per month! Which is amazing.

Competition

Requirement: At least some products with less than 100 reviews on the first page

Check!
3/10 products have less than 100 reviews. This indicates that there is not a lot of competition in this niche and we can easily rank our own products on the first page with our ranking strategy.
The #2 only has 18 reviews!!!

Easy to manufacture

Requirement: The product must be easy to manufacture. Not a lot of different components

Check!
You can directly see that this is product is very easy to manufacture. Made out only 2 different components!

Profit margin

Requirement: Minimum payment of $10

Check!
All products have a net payout of at least $10. This is the amount you will receive from Amazon after they have taken their fees. Based on this, we can make a rough estimate of how much profit we can make on this product.

For example, after a quick Alibaba search, I found that you can manufacture these for $2 for a 10 pack. Based on my experience, it will probably cost around $1 to ship with ocean freight. The number 2 seller in this niche is selling a 10 pack for $23,99 and getting a net payout of $15,53.

So now we can calculate our profit margin:

Amazon Net Payout: $15
Production cost: $2
Shipping cost: $1
Profit Margin: $12 per product!