Many of Amazon sellers are making money by selling Amazon private label products (hiring a manufacturer to produce a product, and then branding it with a business’s logo ).
This is an extremely profitable business strategy with much higher margins than selling wholesale products.
If you want to break into Amazon Private Label selling but don’t know where to start, we’ve put together an extensive list of 19 unique Amazon FBA niches to help you kickstart your business.
We’re not out to give you exact product ideas, but the list should get your brain thinking about the types of products that will work for your business model.
But first let’s a jaunt through some Private Label basics. If you want to skip straight to the products just use the menu below.
Part 2: What are the advantages of Amazon private label?
Part 3: What are private label pitfalls sellers should be aware of?
Part 4: How do I choose my first Amazon private label product?
Part 5: How do I import?
Part 6: 19 products you’ve been waiting for
Private label refers to products that are manufactured by one company, but that bear the name of another company.
For example, as a manufacturer Skechers makes generic tennis shoes (in addition to their own lines) which are branded and sold as a Costco shoes.
Other well-known private label brands include Kroger’s Private Selection, Walmart’s Great Value and Target’s Mainstays brand.
When it comes to Amazon, most third party sellers use websites like Alibaba to locate products from overseas, brand them, and ship them to Amazon FBA warehouses across the U.S. Unless you have a high risk tolerance, there are some products (such as food and makeup) that should be manufactured in North America rather than imported.
Amazon private Label has some major advantages over wholesale and retail arbitrage:
- Ease. You don’t need to create a brand new product (though you can always work with your manufacturer to customize.) Your real focus is packaging. Customers pay for appearance, so even if your product is similar to someone else’s aesthetics will prompt the sale 99% of the time.
- Profitability. By cutting out the distributors, more money will land in your pocket.
- Ownership: You’ll never have to worry about your supply being cut off by fickle brands or intermediary companies.
- Listing domination: Since nobody else can use your Amazon listing, you don’t have to fight for your rotation in the buy box.
There are also a few risks to be aware of, particularly when you’re in the research phase of choosing a new product.
- Don’t be a tiny fish in a huge pond. Never pick a product niches dominated by large brands. Basically, don’t try to compete with Nike, Apple or the like. There is a reason they are multi-billion dollar companies.
- Be wary of product niches with hundreds of products. Just look up garlic presses on Amazon and you’ll understand. Find a space that’s popular, but not overly competitive.
- Don’t compete with Amazon. They have their own product lines such as Amazon Basics. You won’t beat them at their own game, so put your effort where it counts.
- Don’t sell seasonal/holiday products. These may be good for your business model in the long run, but if you’re choosing a private label products for the first time it’s best to pick items with year-round appeal to avoid being stuck with dead inventory.
This depends on a number of factors, including your budget, time constraints, and risk tolerance. At ProfitGuru, we use a basic set of criteria for any private label search.
Make use of Amazon best seller rank
Amazon provides a sales rank helps you anticipate how fast the products turn over within a category (the closer to 0 the better). Your chosen product niche should have items with best seller rankings lower than 10,000. There is a little wiggle room on this if you’re selling products with high profit margins — after all, selling 1 $100 products is just as good as selling 10 $10 products.
To find a best seller rank, scroll down to the middle of any product page under “Product Information”.
Your direct competitors should have less than 1000 reviews.
Even with a huge budget, it’s hard to break into a niche with listings that have been generating reviews for years.
On average, you’ll get one review for every 100-200 products you sell. This would mean selling tens of thousands of products! No new seller wants to deal with that kind of competition.
Choose a small, light item.
Remember how much shipping is involved in the process; your items must be shipped to you, then Amazon, and finally the end user. Items over 1 lb will increase costs at every step.
Find a niche within a niche — This is where you’ll strike gold. You want to find a category that is already popular, then look for the right niche within the category. Ask yourself how the current product offerings can be a) improved b) reduced in price or c) have more aesthetic appeal. Fill the gaps!
Importing is usually a large part of the Private Label experience because goods are so much cheaper to bring here than they are to produce here. Chances are you’ll want to buy from a manufacturer in China, since their trade system is the most sophisticated in the world.
At first glance, importing seems complicated. You have to deal with duties, insurance, import etc. Most of this can (and should) actually be dealt with by a combination of a customs broker, a sock inspector, and a freight forwarder.
- A customs broker customs brokers navigates complex government regulations and laws to make sure your product gets to you in one piece (and without massive fines).
- A product inspector will look at your imported items before they board a ship to make sure they are the quality your ordered.
- A freight forwarder makes handles the physical movement of your cargo, whether it’s by truck, boat, or plane.
There’s no real way around these entities without putting your business at major risk. If you need recommendations your manufacturer.
A last note: Always make sure your purchase is protected. If you’re ordering from Alibaba, make sure your manufacturer offers Trade Assurance to insure your shipment.
19. Unique Flavors
Bacon, pickles and ranch dressing. If you name it, it’s on Amazon. Customers will often pay 2-3x as much for an odd-flavored product then they will for the generic version of an item.
Photographers, house stagers and set advisors are just a few of the many professionals who scour Amazon for items that look real, but aren’t. From plants to fruit, there’s a huge market for fake items.
17. Movie Props
Similar to imitation items, common movie props are regular household items made of foam or other light materials. The private label possibilities are endless.
16. Gag Gifts
Who knew you could sell dehydrated water and make a quick buck? Gag gifts are generally light and inexpensive — the perfect niche for anybody with a funny bone.
15. Wall Decals
Wall vinyl can be cut into any shape imaginable, from popular quotes to california sunsets. Millions of people have vinyl decorating some part of their home, and the options for choosing a product line are infinite.
14. Household items in different shapes
Regular sponge? $1 Sponge in the form of a dog bone? $6.99. This rule holds true for everything from soap to washcloths. Change the shape or pattern of regular household items and you’ll find a strong niche.
13. Food/drink preservers
Wasting food is like throwing cash into the garbage. People spent a surprising amount of money to store their leftovers. You could be the beneficiary if you find the right product.
12. Mini Items
Believe or not, there is a big market for tiny things. People often use miniature items in their fairie gardens and as doll accessories. Just make sure you’re listing is very clear when it comes to sizing. You don’t want your customers to end up like these people.
Forget your typical paprika and cumin. Dish-specific spice mixes are all the rage right now, and big brands are taking a backseat to new flavors like Za’atar and coffee spice.
Yes, stickers. Think beyond smiley faces and stars — the money is in unique and funny products. From “adulting” to memes, the only limit to this niche is your creativity.
9. Special Diets
Keto. Whole30. DASH. Name a diet and there will be a market for specialized snacks. Food is one of the harder markets to private label, so make sure to stick to a manufacturer in your own country to keep tabs on the process and avoid the pains of importing.
8. Natural Cures
Johnny has a rash? Betty has an earache? Surging medical costs and a shift toward nature-based products has prompted many parents to skip the doctor’s office and find natural remedies. There are an enormous amount of sub-categories within this, including essential oils and herb-based body rubs.
Fair warning about this niche: topical products require special care and Amazon approval.
7. Gifts from Mother Nature
You may have to search this one out to believe it for yourself, but there’s a solid market for products you may be able to source from the great outdoors. There are low-ranked listings for everything from rocks to pinecones.
6. Medical Supplies
If you’ve ever been in a medical facility you know there are hospitality items that can’t be found anywhere else — specialized soap, mesh underwear and soft bristle baby brushes, to name a few. Many people search for these items online after their hospital stay. What’s the first place they look? Amazon, of course.
5. Counting Aids
Every kindergarten class in America uses small items to teach kids to count — the cuter the better. There’s a whole market based around this, from tiny bears to plastic disks.
From travel to pedicures, Amazon customers like to buy things in neat little packages. It takes a little more sourcing, since you’ll likely have to order all pieces of a kit separately, but the payoff is worth it if you find the right market.
3. Adult Coloring Books
Yes, this was the fad of 2017 (the remains of which you can find in the dollar store). However, if you move beyond the typical floral patterns and elephants, there’s an enormous demand for off-kilter coloring book topics ranging from marijuana to humping animals.
2. Fishing Lures
With more than 30,000 different species of fish in the world (with a fisherman for each one) there’s an enormous market for specialized lures and bait. This is a research-heavy niche, but there’s a fortune to be made for those who know what they’re doing.
1. Natural Toys
2018 was dubbed the year of Marie Kondo, as millions of parents threw out their children’s loud, annoying toys. As a result, there’s a popular trend brewing (or should we say re-brewing?): classic wood and cloth toys. Start a search for “montessori” and you’ll start to get a glimpse of the potential within this niche.
Want even more private label ideas? Check out this list with the top 25 products to Amazon private label right now (generated using ProfitGuru):