Cash Is King: 10 Amazon Product Niches That Offer Great Profit Margins
One of the oldest sayings in business is that “cash is king.”
That saying applies to any business, but nowhere is it more true than with your Amazon business. If you can identify products that offer high profit margins, you’re going to be able to grow your business rapidly. If your products offer you only modest profit margins, you’ll find growing your business to be a much tougher task.
With that in mind, today we want to showcase for you ten product niches that offer great potential margins. As usual, we found these with the help of the AMZScout software, which makes identifying great niches on Amazon as simple as a few clicks of the mouse.
We’ll walk through each niche in order, share a little more information about the product, and then outline why each niche presents such a great opportunity.
A Word About Terminology
Before we get started, we thought it would be helpful to share a quick word about the terminology we’ll be using in this blog post.
One term that we’ll be drawing on repeatedly is “margin.” By margin, what we mean is the profit you’re making when you sell an item on Amazon.
Moreover, it’s important to know that it’s customary to describe margin in percentage terms. In other words, margin is the percentage of the total revenue from selling an item that goes back into your pocket as profit.
One other note: if you’ve seen or used the AMZScout software, you know that we calculate a product’s margin when we’re evaluating whether a niche is a good opportunity for a seller.
Here’s what you need to know: our margin calculation only incorporates Amazon’s fees into the equation. It does not take into account the raw cost of the product, transportation, fulfillment preparation services, and so forth. So as we walk through these niches and as you’re doing the math around potential products, keep that in mind.
Amazon Niches with High Margins
#1 Beer Buckles
The first product we want to showcase is beer buckles.
What on Earth are beer buckles, you might ask? Great question!
Beer buckles are belt buckles that include a bottle opener that allow you to--you guessed it--open your beer.
Let’s be honest: this isn’t one of the most romantic ways to buy a drink for someone. In fact, if a guy offers to open a woman’s drink with his belt buckle, she may well go running in the opposite direction.
But that doesn’t mean they’re not a great product to sell on Amazon. First and foremost, they sport a gross margin of 57%
In addition, there are only a few sellers of similar products on Amazon and they don’t have very many reviews, which means you won’t have stiff competition as a new seller. Finally, these buckles are often engraved, which gives you a great opportunity to differentiate your listing and keep other sellers away from it.
#2 Bluetooth-Enabled Earbuds
Our next product niche is Bluetooth-enabled earbuds.
We’ve all been there, right? You’re going for a run on the treadmill and want to listen to Spotify while you jog, but when you reach into your pocket and pull out your phone, you discover that your headphones are, once again, all tangled up. Of course, Apple is happy to sell you a pair of their AirPods for the low low cost of $159.
Based on our research, customers on Amazon are begging sellers to solve this problem for them. Why is this such a great niche? There are dozens of sellers whose earbuds have a best seller ranking of less than #25,000, which indicates that there are a ton of people doing brisk business in this niche.
But the really attractive part is the potential of the item: at 80% gross margins, it looks like those sellers are earning very healthy profits.
#3 Wood Slices
Yes, you heard me correctly. Just plain old pieces of wood.
It might seem really basic, but shoppers on Amazon will pay good money to have a little piece of nature in their home. The best part about this niche is that you’re not going to go up against any big brand names. No one has, well, cornered the wood slice market.
One word of warning if you’re thinking about this niche, though: it’s safe to assume that this product is highly seasonal. Think about it: folks like to decorate for Christmas or for their weddings, right? As a result, you’re probably going to see more sales during one time of year than others. Make sure you plan accordingly.
#4 Anti-Snoring Devices
We’re going from slices of wood to sawing logs. Our number six niche is anti-snoring devices.
It turns out that Amazon customers get just as frustrated as you do when their partner or spouse is keeping them awake with their snoring. On Amazon, you can find all kinds of snoring prevention devices: straps that wrap around the chin, plugs you put in your nose, and pieces of plastic you insert into your mouth.
But based on our research, there’s still room for more sellers and more types of products. The average margin in this niche is more than 60%, and the average rating for the products is less than four, which suggests that there’s lots of room to improve on existing offerings.
And remember, if you’re having trouble figuring out the perfect anti-snoring device to launch on Amazon, there’s always the slices of wood, Just tell wives to hit their husbands with the piece of wood whenever they’re snoring loudly. It’s sure to wake them right up. Just kidding!
#5 Afro Wigs
Our next great niche is afro wigs.
Can we level with you here? When we started doing research for this article, we didn’t know that afros were still a thing. We thought they died out in the 1970s, along with bell bottoms and disco music.
We thought wrong. The AMZScout extension estimates that lots of sellers are doing a brisk business selling these wigs. With a healthy profit margin of 58%, you might feel like dancing disco if you end up launching a product in this category.
#6 Quartz Face Rollers
Also on the topic of makeovers: quartz face rollers.
Listen up, men. For those of you who might not appreciate how much time and effort women spend to look great, face rollers are designed to help eliminate puffiness, dark circles, and fine lines from your face. And using quartz rollers to do this work is currently all the rage.
The AMZScout extension indicates that this niche is by no means saturated yet and, better yet, that the existing sellers in the category have listings that leave much to be desired.
One thing to know about this niche, though: products in the health and beauty space tend to have gating restrictions, which means that Amazon puts restrictions on which sellers can sell in the category. So if you’re going to go after face rollers, make sure you get all the necessary approvals from Amazon first.
#7 Self-Locking Cable Loop Ties
Next up: self-locking cable loop ties.
Now, in contrast to the face rollers we mentioned a moment ago, there’s nothing particularly sexy about cable ties. In fact, if you were asked to name the least sexy product on Amazon, cable ties would have to be near the top of the list.
Sometimes, however, this can prove to be a real advantage for a seller. That is, lots of new sellers are going to go after niches that are “fun” to sell. You’d much rather tell your friends that you’re making a killing selling afro wigs than cable ties, right?
But that very logic means that you’re going to encounter much less competition in the “boring” niches.
Our data backs this up: this niche appears wide open, with few sellers, no major brand names, and relatively few reviews on the products that are listed.
#8 Travel Trays
Our third-to-last niche are travel trays for children.
These are just the thing to keep kids occupied during long flights and car trips. By putting their favorite toys, books, and games in one place, little ones will hopefully fidget and fuss a little bit less.
There’s definitely nothing for sellers in this niche to complain about either: this category sports an average margin of more than 60% and a fairly high price point, meaning you’re going to generate more revenue with fewer sales.
As with the face rollers, Amazon can be a stickler when it comes to approving sellers in the Toys & Games category, so make sure you’re cleared to sell before you spend money on inventory.
#9 Unicorn Dreamcatchers
The travel trays are there to help parents when the kids are up and awake. But what do parents need when they’re trying to get their children to go to sleep?
Enter unicorn dreamcatchers, our next-to-last product niche. If you have a daughter at home, you might know that unicorn-themed products are all the rage right now. They’re on everything: notebooks, backpacks, shoes, you name it.
Now they’ve made their way to dreamcatchers, and Amazon shoppers are proving eager to snatch them up. Average margins for the category clock in at 64% and, based on how unsaturated the niche is, it looks like sellers have been slow to respond to the trend.
#10 Aromatherapy Air Purifiers
Last but not least: aromatherapy air purifiers.
It turns out that after a long day and night of chasing their kiddos around, lots of parents are looking for a good way to relax and unwind. And based on our research, a little aromatherapy is just the thing that they’re turning to in order to destress.
With an average margin of 65%, very few brand names to compete with, and shoppers willing to fork over nearly $25 for the product, these purifiers smell like roses to us. As with the wood slices, though, keep a close eye on this niche to check the product for seasonality, and make sure to plan your inventory levels accordingly.
We hope you’ve found the high-margin product ideas you need to take the next steps with your Amazon business. Now it’s your turn: what new product niches have you been eyeing for your business? And what’s the one thing that you look for when you’re evaluating new product ideas?
Thanks for reading!