Finding High-Demand, Low-Competition Products on Amazon

Introduction

One of the best strategies for Amazon sellers is to find high-demand, low-competition products. These items offer a significant opportunity to generate sales without facing intense competition from other sellers. However, identifying these "hidden gems" requires a blend of research, the right tools, and a strategic approach. In this guide, we’ll walk you through the process of finding high-demand, low-competition products on Amazon, covering the most effective methods, tools, and criteria for making informed decisions. Whether you’re a new seller or looking to expand your existing inventory, these tips will help you uncover lucrative product opportunities.

1. Understanding High-Demand, Low-Competition Products

Before diving into the methods for finding high-demand, low-competition products, it’s important to understand what these terms mean in the context of Amazon:

High-Demand Products: Sought after by many customers, indicated by high search volume or consistent sales. Tools like Google Trends and Helium 10 can track keyword search volumes, helping you gauge demand effectively.
Low-Competition Products: Have relatively few sellers or listings, making it easier for new sellers to gain visibility. Look for product categories where top sellers have fewer than 200 reviews. Tools like AMZScout and Jungle Scout help identify competition levels quickly.

By targeting products that meet both criteria, you can improve your chances of succeeding on Amazon.

2. Tools You Need for Product Research

Finding the right products requires the use of research tools that provide valuable data on Amazon's marketplace:

Helium 10: Features like Xray for analyzing product niches and Magnet for keyword research help identify high-volume search terms.
Jungle Scout: The Product Database and Opportunity Finder allow sellers to filter products by estimated sales, competition level, and average price.
AMZScout: Offers tools like the Pro Extension for real-time data analysis, allowing sellers to evaluate sales trends and competition effectively.
Google Trends: Provides insights into keyword popularity over time, helping you identify emerging trends before they peak.

3. Criteria for Identifying High-Demand, Low-Competition Products

When evaluating potential products, consider the following criteria:

Search Volume: Aim for at least 3,000 monthly searches for relevant keywords, indicating healthy demand.
Number of Competing Listings: Target niches with fewer than 1,000 competing listings for the main keyword to suggest lower competition.
Average Reviews: Choose products where the top listings have fewer than 200 reviews, signaling that the market is not yet saturated.
Profit Margins: Aim for a minimum of 30% profit margin after Amazon fees, shipping, and other costs.
Seasonality: Be cautious of products with highly seasonal demand unless you have a strategy for managing inventory during off-peak months.

4. Step-by-Step Process to Find High-Demand, Low-Competition Products

Follow these steps to uncover profitable product opportunities:

Step 1: Start with Broad Market Research

Brainstorm: Think about product categories that interest you. Consider everyday products or emerging trends.
Use Google Trends: Check if interest in your chosen category is rising.
Browse Amazon Best Sellers: Look at popular products in your niche to gauge potential.

Step 2: Conduct Keyword Research

Use Helium 10 Magnet or Jungle Scout Keyword Scout: Find keywords with high search volume (3,000+) and low competition.
Identify Low-Competition Keywords: Focus on keywords where top listings have fewer reviews.

Step 3: Analyze the Top Listings for Competition

Check Reviews: Look for listings where most top sellers have fewer than 200 reviews.
Assess Listing Quality: Identify listings with poor-quality images or unoptimized titles. This can be your opportunity to create a better listing.
Seller Type: If most top sellers are FBA sellers, it indicates that the product is viable for Amazon fulfillment.

Step 4: Verify Demand Using Sales Data

Use Helium 10’s Xray or Jungle Scout’s Opportunity Finder: Check estimated monthly sales for top listings. Look for products with at least 300 monthly sales for the main keyword.

Step 5: Evaluate Profitability

Calculate Potential Profit Margins: Use an Amazon FBA calculator to factor in all costs and ensure a 30% or higher profit margin.

5. Examples of High-Demand, Low-Competition Product Niches

Consider the following niches when looking for profitable products:

Home Office Supplies: Items like desk organizers and ergonomic tools remain in high demand as remote work continues.
Eco-Friendly Products: Reusable straws and compostable bags are increasingly popular as consumers seek sustainable options.
Pet Accessories: Pet grooming tools and interactive toys are in demand as pet ownership grows.
Fitness Equipment: Resistance bands and compact workout gear have sustained demand as home workouts become popular.
Automotive Accessories: Niche products like trunk organizers and car seat covers are useful, easy to ship, and often experience consistent demand.

Conclusion

Finding high-demand, low-competition products on Amazon can be a game-changer for your business, providing a competitive advantage and boosting sales potential. By leveraging the right tools—like Helium 10, Jungle Scout, and AMZScout—and following a data-driven approach, you can identify lucrative niches that aren't oversaturated. Remember, thorough research, optimized listings, and strategic marketing are key to turning these product opportunities into profitable ventures.

If you need personalized guidance or help fine-tuning your strategies, Superfuel AI can assist. Our AI-powered assistant analyzes 36+ key Amazon metrics to identify and address the root causes of sales fluctuations, helping you optimize your storefront and boost sales. Reach out to us at [email protected].

Ben Mathew, Amazon Expert

Ben Mathew is a co-founder at Superfuel, a sales assistant for Amazon sellers. In the past, Ben and his team of e-commerce specialists and software engineers have launched 40+ new brands on Amazon, taking them from zero to bestsellers. In his free time, he is either learning from other top sellers or encouraging his 3 daughters in their love for reading. He is reachable at ben [at] superfuel.io.

FAQs

How can I identify if a product has high demand on Amazon?
Use tools like Helium 10, Jungle Scout, or AMZScout to check the monthly search volume and estimated sales for relevant keywords.
What is a good number of reviews for a low-competition product?
Look for products where the top listings have fewer than 200 reviews. This indicates lower competition and a better chance for new sellers to succeed.
Should I avoid seasonal products?
Yes, unless you have a plan for managing inventory during off-peak months. It’s generally better to choose products with year-round demand.
How do I calculate profit margins for Amazon products?
Use an Amazon FBA calculator to factor in Amazon fees, shipping costs, and manufacturing expenses. Aim for a minimum 30% profit margin.
Can I succeed on Amazon without using paid tools?
While it is possible, paid tools like Helium 10 and Jungle Scout provide valuable data and insights that can significantly increase your chances of finding profitable products.