Top Amazon niches in 2023

We often hear the following: “I have a unique product and want to sell it on Amazon. I’m sure it will sell well”. However, after an analysis, it becomes quite clear that the product is not interesting to consumers. To avoid similar situations and mistakes, it is essential to carefully analyze the marketplace and identify the proper niche in which you can start. The Disqover team has been helping sellers launch products on Amazon for nearly 5 years, and now it’s time to share the knowledge we’ve accumulated! In this article, we will discuss the best selling products on Amazon, the niches that are worth considering, and how to identify your “perfect” niche.

Top sellers  and selling niches in 2023

On Amazon, you can find and buy almost anything, but over the past two years, three categories of products have consistently appeared on top:

  1. Home and Kitchen
  2. Beauty and Personal Care
  3. Clothing, Shoes, and Jewelry

While these categories are the most popular, they are also the most competitive. To be successful, you need to find a narrow but unoccupied niche where there is unmet demand. Below we outline 8 promising selling niches in the USA and Europe and our recommendations on how to stand out among thousands of competitors!

  1. Pet supplies: The pet care market has increased from $216 billion in 2020 to $232 billion in 2022 and is expected to continue growing. Now is the perfect time to introduce something new to the market and offer unique solutions for pet owners. It could be innovative tools for removing dog hair, hi-tech collars, or new materials for cat litter boxes. However, be aware that non-US residents cannot import and sell antibacterial products that are manufactured outside of the US. Therefore, carefully check the product’s composition and the country’s legislation before entering the market!
  1. Baby care: The baby category has great potential and various untouched niches that are still being developed. We recommend finding alternatives and modifications to everyday products, for instance, reusable diapers as an alternative to disposable ones. By the way, there is still high demand for eco-friendly products, so it’s worth paying attention to this segment. Remember though that this niche requires a Children’s Product Certificate (CPC) in the US.
  1. Gaming: Since the Covid-19 pandemic, there has been a significant increase in demand for gaming products. Best selling items in the past year include gaming headsets for PC, Xbox One, Nintendo Switch, and PlayStation. However, these categories may have restrictions from trademark owners, so we recommend finding narrower niches and unique gaming accessories. For example, our team has worked with an unusual product – gaming gloves that assist in maintaining muscle tension, enabling gamers to extend their playing sessions.
  1. Home gym: According to Statista, the revenue in the fitness niche was $21.9 bmillion in 2022. Home workouts remain popular, even though quarantines have ended, so you should consider products for CrossFit, especially pre-packaged sets or bundles that include all the essentials for sports activities. Amazon customers value convenience.
  1. Beauty and personal care: It may seem that there are no niches left in this oversaturated category, but we’ve identified a few for you! Beard care and eye care products, for example. How can you stand out? Attract customers through exclusive product formulas, options for comprehensive care, or multitasking products.
  1. Vegan supplements: This is a new but successful adaptation of dietary supplements and vegan products. We have had a success story in launching adapted vegan products, so we can confidently say that there is hidden potential in this niche. Best selling items include plant-based protein powder, vegan collagen, Omega-3, and probiotics. Note that this category requires COA certification in the USA and GFSI certification or valid HACCP certificate(s) in Europe.
  1. Zero waste products. This is also a relatively recent trend with a new range of successfully adapted goods. Therefore, by adapting your products to this niche, you can effectively target and reach your desired audience! Best selling items include reusable makeup removers, bamboo cotton swabs, shoppers and bags made from organic mesh, bamboo toothbrushes, compostable bags, and beeswax wraps.
  1. Home office. A lot of people continue to work remotely even after the Covid-19 pandemic, so this niche remains relevant. Best selling items: laptop stands, ergonomic chairs, desk LED lamps. We recommend searching for ideas on how to improve the shortcomings of your competitors’ products. Make a lamp last longer or a chair more comfortable.

How to identify the “perfect” niche for selling on Amazon?

We’ve developed a checklist to help you find that perfect niche to start with:

  1. High demand: Choose products that have the potential to generate at least 10 sales per day and have a minimum of 50,000 monthly search queries on Amazon.
  2. Low competition, preferably less than 1,000 competitors. The fewer the competitors, the greater the chance of ranking highly in search results and becoming a bestseller in your niche.
  3. Medium price range. The optimal price range for products on Amazon is $10-$50, although this can vary depending on the niche.
  4. Repeat purchase potential.
  5. High product margin. This increases the ability to actively promote your products and achieve higher sales. You can calculate margins using this link: https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US.
  6. Understanding consumer frustrations, revealed through an analysis of competitors’ reviews and market research.
  7. Absence of existing cheaper alternatives that already satisfy consumer needs.
  8. A limited number of reviews among competitors, ideally below 2,000. Reviews directly impact the decision to purchase a product.
  9. A limited number of recognizable brands in the niche or absence of a dominant market player.
  10. No additional requirements for product delivery to Amazon warehouses, sales launch (certification), or customs clearance.

It can be challenging to predict whether a product is suitable for starting a business on Amazon. To do so, you need to analyze demand and competitors, calculate unit economics, and prepare a P&L forecast. The Disqover team can assist you at each of these stages! Over the past 5 years, we have analyzed nearly 100 niches and provided business recommendations for the successful adaptation and launch of various products, including categories such as food and water, toys, gels and polishes, and more.

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