How to find a profitable niche on Amazon?
Which niches will be profitable on Amazon in 2020 and beyond? Researches of the new customer trends provide answers to this question
2020 has completely reshaped the consumer landscape and forced people to adjust their purchasing habits.
Digital shopping is here to stay
Consumer intent to shop online continues to increase, boosting sales and opening new niches on Amazon, some of which were traditionally considered not suitable for online sales.
For example, furniture is expected to be the fastest-growing segment of e-commerce sales through 2022.
Home office equipment niche is on the rise as well. A recent survey by Gartner found that around 74% of companies intend to keep at least some of their workforce remote after the pandemic is over.
Openness to new retailers and their products
A McKinsey study revealed that 75% of consumers have “tried a new shopping behavior in response to economic pressures, store closings and changing priorities”.
Few companies could have prepared for the fallout due to COVID-19 and the lingering impacts on supply chains and delivery. Many consumers have been forced to look outside their preferred brands due to what is available in their geography.
Thus, consumers are now experiencing interactions with new brands for the first time. This makes it a good time to launch a new product on Amazon. Just take into account that a poor e-commerce experience could turn off a shopper for good, while a seamless experience could lead to a new brand advocate.
Conducting a consumer research would provide essential information about consumer desires and pain points.
The role of social context
Shoppers are increasingly using their purchasing power as a way to support businesses with shared values. With more choices than ever before, consumers can align their purchase decisions with companies that have ethical practices and shared beliefs.
According to a survey by Google, 46% of US shoppers agreed that “I make a deliberate effort to shop at businesses that align with my values”.
People want companies and brands to stand for something. You can use this idea and add attributes such as “Zero waste”, “women-led” or “LGBTQ-friendly” to stand out from competitors and make your product more attractive to customers.
Why are there trends important?
Shifts in customer behavior and rapid growth of online retail create new niches on Amazon, where demand exceeds the supply.
Finding and occupying such a low-competition niche will make it infinitely simpler to discover potential customers and convince them to purchase from you.
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