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How I Found a Profitable Niche For My Amazon Private Label Business

Here is the story of Elizabeth, and how she found the product ideas that led to her successful Amazon business.

About My Amazon Business

I’m Elizabeth. I live in Miami and have been selling on the Amazon US marketplace for several years. While it took a little time for my business to gain traction at first, I’ve maintained a successful online shop selling products in a variety of niches including toys, clothes, and on occasion, holiday items with a business partner.

We started from scratch with no prior experience in eCommerce, with a small amount of starting capital. Through trial and error, I have identified for myself the main aspects of running a profitable business, especially when it comes to choosing a niche to sell from. I'll share some of these insights here as well as one of my most profitable products.

What You Need to Launch Private Label Products

Starting an Amazon private label business involves many steps, such as product creation and manufacturing, branding, shipping, and more. But none of this will make any sense without the most essential step - knowing how to find a profitable niche for your products. Depending on the overall size of a market, you may need to branch out into multiple niches to reach your business goals.

Here are common criteria for a good Amazon niche for private label selling:

  • Steady or growing demand
  • Low competition
  • Price range of $30-100
  • Potential for high-profit margin
  • An opportunity to improve and develop the product

I strive to keep up with current trends and am always looking for new ways to expand my business. This leads me to launch new products quite regularly. When I do, I like to launch new items quickly to ensure that I can get ahead of any potential competition. But it turns out that finding new, trending, and profitable products isn't as easy as I’d thought it would be.

Finding a Profitable Niche

When I first started my business, I would handle the process of researching and finding new products by myself. While product research isn’t the worst task in the world, it can be a tedious job, especially if you need to continually come up with new product ideas.

What's more, I’m not terribly experienced with finding niche products to sell on Amazon and identifying trends in general. My strengths and interests lie in organizing and managing the business. With my lack of expertise in this area, the research process can take even longer and the quality of the results isn’t guaranteed.

In an effort to learn, I watched a few webinars explaining which criteria to look for when evaluating potential products. Through these webinars, I discovered that there are services that specialize in finding trending products and can help you streamline your business at the early stages.

Because of this, I began looking for ways to outsource my product research to someone that would be able to better spot emerging trends. I didn’t want to start by hiring someone, so I decided to look for more trusted services with experienced analysts. After some research, I found an interesting service called Sellerhook.

Sellerhook is a done-for-you Amazon product research service that discovers profitable niche product ideas. I decided to try this service so I ordered research for a few products. Below is the simple process for using Sellerhook:

1. Select your product criteria. You can select the standard criteria or set your own specific product criteria.

For my products, I usually selected a price range of $30-60, average monthly sales of more than 100, and a net margin over 60%. I consideredd different product categories, so I chose a few categories at once, like Kitchen & Dining, Toys & Games, or Pet supplies.

2. Place your research order. The expert team will find you a product based on your selected criteria.

3. Review the research report. With each product idea, you get a detailed report explaining why the product is a great fit. It also includes important stats regarding sales and search volume.

Liking what I saw, I ended up ordering additional research. In total, I received 40 new product ideas over the course of six months

Should I Trust the Research Results?

I decided to confirm what I saw in the reports for myself and used the AMZScout tools to make sure the data was correct and could be trusted. The main metrics I evaluated are:

  • Sales history
  • Price history
  • The number of other sellers
  • Net margin

To my satisfaction, the results in the reports I ordered always matched the data from the tools.

Plus, looking at the tools and analytics provides me with more insights. I can also analyze competitor products in the niche. In the PRO Extension, a Listing Quality Score for each product indicates how well-made the product page is. I can use this information to see if those products will be more challenging to outrank.

This is helpful because I can then go Sellerhook with additional follow-up questions about the results. In the end, I learn more about each product and get a better understanding of its profit potential.

After reviewing each of the products, I decided to begin launching a few of them. I was ready to invest $10-15k to have the product manufactured. This allowed me to start with a sizable quantity for each product.

Below I will demonstrate the process of how I analyze each product and niche on my real product.

Example of a Successful Product

I’ve had success with several products that were first discovered by a research service. One of the most successful among these was a model house kit. We started research for the product in the middle of 2021 and eventually launched the product at the end of the year.

Following my normal process, I reviewed the research report from Sellerhook and then checked the key product metrics myself to ensure that the item met my minimum standards. The assessment from the report and my own research proved to be correct.

Upon review, all of the numbers looked good. The model house kit niche seemed promising to me because it met all my needs:

  • Average monthly sales of about 150 units
  • Average price of $35
  • Low number of sellers, no big brand names
  • Less than 100 reviews

I saw that the product had a growing trend, low competition, a high degree of novelty, and good margins.

During the following year, sales for this product increased every month. Below is an image of the Niche History from the AMZScout PRO Extension. In this chart, you can see that sales have roughly doubled in 2022 compared to 2021, and had a big spike towards the end of 2022. My product is among those with the top organic results.
That’s how the niche looks now. It has good average monthly sales of over 500 and a really high net margin of 70%.
As I was one of the first sellers to offer this product, my shop attracted many sales. With those sales also came reviews. Because the product was still young, there weren’t any competitors whose listings had a lot of reviews. This meant that my product was quickly able to get more reviews than theirs. Customers appreciated the quality of the product and the attention to detail that went into its design and production.

How the Product Performs Now

At this point in time, the product has been live for a little over a year. Since then, a bunch of other competitors have started selling similar items. They also opted to reduce their prices to attract more buyers. As a result, I needed to drop my prices as well in order to compete for sales. This has cut into my profit margins somewhat.

However, due to strong and steadily growing organic sales, the product is still doing great. The product ranks highly for some of the most popular search terms for the niche. This allows the product to get a high number of customers without paying for ads, helping to counteract the effect of lower profit margins.

With an established business, I can also negotiate exclusive deals with manufacturers to get better prices. Plus, having more capital on hand and being able to purchase larger order quantities helps to lower product costs.


Thorough product research is an essential part of a successful private label Amazon business. Finding a booming niche requires careful analysis and scrupulous comparison of a variety of data. You can do your own research, but if you don’t have enough time, resources or skills, you can take advantage of special services. Choosing trusted and experienced specialists, like Sellerhook, and specifying the right criteria for your products will help to increase your chances of success.