Oh, boy! It’s gonna be a big one today. Today we’re going to dive into how exactly to find Amazon wholesale niches.
Now, we’re going to focus on wholesale – that is, selling other brands – but you may find a decent chunk of private label niches these ways as well.
We’re going to check out how to find top-performing listings as well as some of the best places I like to look.
So let’s get moving!
Part 1: Determining Your Winning Criteria
Before you start sourcing, you want to determine your criteria.
Do you want fast-moving items? That may bring huge revenues, but potentially lower profits at the cost of higher competition.
Do you want slower movers? These can prove profitable, but leave you with stale inventory if any competition hops on.
Do you want large items? Small items? Items that may have a bit of seasonality to them?
You’ll have to make a few decisions on what risk level is comfortable for you.
If you’re just starting out – I recommend you get started right in the middle.
Choose something with at least 24 units of sell-thru a month. Aim for more than $1 profit – trust me, it’s for your sanity.
Shoot for 30% or more ROI – that’s profit / wholesale cost.
Don’t get anything too large or heavy – shipping costs will bite you.
Potentially try something in the sub-$7 range – Small and Light is a great option to gain a competitive edge against larger sellers.
Part 2: Choosing a Seed Niche
Now comes to part 2, choosing a seed niche.
When I first started out selling, I had absolutely no clue what sold well.
In fact, my first product was a poor attempt at private label. I saw that a seller had a rank of #10,000 in Sports and Outdoors and thought I had hit the goldmine (I hadn’t).
After the failure of that, it became incredibly obvious to me that with low starting capital (my business partner and I only had $4,000 left), we had to go into wholesale. Private label was just too big of a risk early on.
So we looked around for some niches that were relevant to us.
I don’t want you to have to go through the same suffering that most newer sellers deal with. They try PL, then quickly fail, then give up entirely.
There’s a reason why only 2 million out of 8.4 million selling accounts are active, according to MarketplacePulse.
It all comes down to having the right niche.
In fact, once you have a good wholesale niche, you’ve probably got a good PL niche alongside that.
Here’s a few tips on getting started on that niche-finding process. Now a quick warning, it may take a bit of time. But remember – this is time well spent. This could mean the difference between a slow-selling item and dozens of fast movers.
The Consumer Method
Analyze literally everything you bought. No joke.
What categories were they in?
What Amazon categories were they in?
Now, funnel down.
Were these items purchased from third party sellers?
You may be onto something.
The Hobby Method
If you’ve still got nothing, think about some of your hobbies.
What do you like doing? Maybe you’ll like selling in that niche more.
Now, you’re probably not going to be able to sell digital downloads of video games. But is there anything you enjoy that involves buying things?
Do you like sewing? There’s a category for that.
Biking? Another huge niche.
Working on cars? Automotive is massive on Amazon – maybe focus on a specific model of car.
The ideas are endless. Grab a dozen ideas, maybe 100 if you’re really feeling up to it, and start on a search. Look for fast-moving (ideally sub-25,000 BSR) items.
Find trends in the brands that are selling them.
Are some brands doing awesome?
Great, add them to your list.
Are there some items that are doing well, but they’re one-offs?
Great, add them to your list. Those one-offs probably have lower competition.
Keep going until you have no ideas left.
The Day-to-Day Method
The Day-to-Day Method involves thinking about what you do on a daily basis.
If hobbies aren’t your thing, and you haven’t bought anything relevant (if so, wow!) just think about what you do on a day to day basis.
There are weird niches for everything.
Ever need a car battery? Well, that’s a huge niche.
How about vitamins? Huge.
General household supplies? Paper towels? Canned bread? All huge.
Chances are there’s something, of some sort, that you bought last year or interact with on a day-to-day basis that you can sell wholesale on Amazon.
I truly believe that’s true for anyone.
The Secret Shopper Method
If you’re completely desperate niche-wise, go to your favorite store.
See what they stock and what most people walking around you are buying.
I don’t care if it’s Bed, Bath and Beyond, Target, or Walmart. Doesn’t matter.
Look around and go down some aisles. In fact, go down every aisle.
See what’s interesting to you, or see if you find anything super weird.
Chances are if Walmart stocks it, it probably sells.
And it’s probably selling online too.
Here’s a good time to even do some retail arbitrage sourcing … but in a different way. This time, we’re going to find winners, but turn them into long-term winners – because we’re not at the mercy of paying retail price for them. We’re paying wholesale.
Scan some stuff. Check the ranks. Check the buy box.
Third party seller? Profit even if you bought it at Walmart?
Call the brand, now.
Plan B: Replication
This brings us to Part 3 – Finding Stores. If you still are at a complete loss for niches, it’s time to see who’s doing well, and how you can do the same.
Part 3: Finding Stores
If you’re still absolutely desperate, check out who’s doing well.
When I’m feeling like I need to look for some ASINs, I go on a hunt.
I open up a site like SellerRatings. Here, we can see everyone’s relative rank in the Amazon world – they do this by ranking 30-day feedback counts.
It’s not a totally accurate estimate of who is the biggest seller, per se, but it does a good job at showing who’s bringing some volume.
Remember, Amazon isn’t like eBay – feedback’s pretty hard to get.
We’re generally in the less than 0.5% range for feedback-to-orders ratio (jeez, maybe we’re just unlucky).
This means if someone has, say, 80 feedback last month, they likely shipped more than 16,000 orders that month – and that’s on the low end.
Some of these larger sellers are great for taking a look at brands.
To start, head here – this is the main SellerRatings page for USA.
Go over the top 1,000 stores or so. You don’t have to check every one, obviously, just click a few that stick out to you.
If the results are a mishmash of random brands, you’ve found a reseller. So let’s go ahead and check out what’s hot.
Then, head to the bottom of the page and click the Browse All Products button.
I’ve found a big pet seller here.
Now we’re sourcin’. Let’s click the “See more” on their brands list.
We can immediately see their top brands by ASIN count. Plus, we can go A-Z and see every brand they sell.
Part 4: Finding Best Performers for FBA Wholesale
Now, spend some time going through these random brands. Click on some individual brands.
Then, click some ASINs.
Now, a quick note here – by default, when you’re clicking an ASIN from a seller like this, you’ll see that their offer is displaying in the buy box.
This can be quite confusing, as it’ll look like they have the buy box on every product, when in fact Amazon may have it on several, or other sellers might at lower prices, etc.
What you need to do when you click an individual ASIN is change the URL in your address bar.
Initially, it’s going to be a really long string of characters.
But it’ll always start something like: https://amazon.com/THE-TITLE-HERE/dp/SOMEASINHERE/EXTRASTUFF
You want to remove anything after that /dp/SOMEASINHERE/ part.
Now, you’ll see the buy box exactly where it’s at. Who’s selling, what price, and how many sellers there are.
If something catches your eye, add it to your niche and brand list.
Now that you’ve gotten started with finding the niche, it’s time to analyze some listings.
And of course, if you’ve already got some niches and product data ready to sift through, try out Sellonaut for 14 days free today. We make it easy to understand your data and make automatic, profitable purchase orders in minutes.