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Amazon Market Research Trends and Niches
May 18, 2021

Amazon Market Research: Trends and Niches 2021

If you’re a new Amazon seller, you can be overwhelmed by the extensive categories and subcategories available in this marketplace. It’s important to determine which niche will provide you the profitability you’re aiming for. In-depth market research focusing on consumer purchasing behavior trends that directly affect sales can help you to make a wise decision.

Here’s how you can go about it.

Finding a profitable niche on Amazon can be a complicated endeavor. However, you can make it simpler and faster by following the right process. First, use market research tools that have a proven track record. Second, apply these tools to the Amazon category you’re interested in to determine which product to launch. And third, discover consumer behavior towards the product you’ve selected.

Tools to Perform Amazon Market Research

Below are the three market research tools we use regularly to help our clients selling online. Each one serves a specific purpose, so it would be best to utilize all of them.

Best Sellers Page on Amazon

The best sellers on Amazon are found right on the platform. It lists the most popular products for each category and subcategory based on sales. All information about products, including the most gifted and most wished for, is updated hourly on this page.

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When you click on a listing’s thumbnail, you will be redirected to its product page. There, you will find additional details, such as its category and subcategory ranking, reviews, price, and specifications. If you like what you see, then proceed with the other bestsellers until you have a shortlist.

AMZScout Tools

This research software helps you to find profitable products by analyzing data and trends on the demand and competitive landscape of certain niches. Its Product Database contains an extensive list that you can narrow down by selecting your preferred business market and product category. The results include images, specs, related products, and Amazon stats like BSR, monthly sales, inventory, product score, and profit which you can use to determine the cost and potential revenue of each item.

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The AMZScout Keyword Research tools are especially helpful in finding high-demand niches. Simply enter a phrase related to the product you’re interested in and it will tell you the level of consumer demand. You’ll also get an idea of related products which could be more profitable.

Google Trends

This tool uses the search engine’s data to help you to find niche markets based on industry, brand, and product trends. It can tell you the peak and low seasons of any product or niche on a single page. Trending searches, in particular, feature the current most searched topic with keywords you can use for your market research.

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Amazon Trend Niches 2021

Below are the 5 trending niches on Amazon this year, and the products considered as hot items in each category. They are worth looking into whether you’re still in the planning stage of becoming a seller or already an online veteran.

1. Beauty Products (Skin Care)

In 2020, the value of the global skincare and beauty industry was $140.92 billion. Experts estimate this number will grow 4.69% annually from 2021 to 2026. Demand for personal care products, anti-aging products, and organic and natural skincare products has been on the upswing.

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On Amazon, the health and beauty category has ranked third since 2018, with sales in the skincare sub-category increasing by 84%. It is noteworthy that 52.5% of Prime members were largely responsible for this growth.

2. Home and Kitchen (Bed Sheet Set)

With a larger percentage of the population spending more time indoors because of pandemic-induced lockdowns, beds have taken on a life of their own. As expected, demand for ancillary products like customizable bed sheet sets and luxury pillows increased, with bed linens taking up the largest share of the sales pie at 31.6% in 2020.

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The global home bedding market is expected to rise by 9% in 2021 and estimated to earn $147 billion by 2028.

The Home & Kitchen category on Amazon is ranked number 1 in profitability, with bed sheets raking in the most sales.

3. Sports and Outdoors (Water Bottle)

Reusable water bottles are now all the rage and the market is predicted to expand by 4% from 2021 to 2028 at an estimated value of $84.8 billion. The escalation is bolstered by worldwide government regulations and restrictions on the use of disposable plastic bottles. Metal-based reusable water bottles, in particular, are becoming popular.

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Sports & Outdoors ranks second on Amazon and reusable water bottles are its bestsellers.

4. Toys and Games (Bubble Fidget Toy)

The NPD Group/Consumer Tracking Service reported a 16.7% increase in the US toy industry from 2019 to 2020 and was valued at around $32.6 billion by the end of the year.

Toys that served as de-stressors like plush dolls, fidget toys, and bubble poppers, in particular, have seen increasing demand.

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Toys & Games is the third most profitable category on Amazon, and bubble fidget toys are currently the hottest trending items among sellers.

5. Electronics and Accessories (Magnetic Chargers)

The wireless charging industry worldwide is estimated to hit the $4.5 billion mark by 2021 – a growth fueled by the increased application of wireless tech in consumer electronics and people’s escalating need to charge multiple devices simultaneously.

Another factor is the rising popularity of electric vehicles to combat climate change which has further fueled the demand for wireless charging.

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The Electronics category on Amazon may not be in the top 10, but magnetic chargers are selling like hotcakes.

Amazon Consumer Trends

Apart from profitable categories and niches, it is equally important to study your target consumer. That way, you can package your offers according to their preferences. Consider the following:

More Tech-Savvy Online Shoppers

Purchases inspired by social media, deal-finding browser plug-ins, online grocery shopping, and food delivery were the major changes to consumer behavior in 2020. Amazon, being the tech innovator that it is, rose to the challenge of adjusting to these developments.

Voice search is being increasingly utilized by consumers and Amazon’s Alexa has kept up. It has greatly improved in convenience, accuracy, and speed when it comes to hands-free voice shopping, ordering from restaurants, paying bills, and real-time delivery tracking. Shoppers also want to see barcodes they can scan to check prices and instant customer service chat features. The Amazon app offers both.

Online Spending Has Increased

The global health crisis saw a paradigm shift to online shopping with more consumers’ discovering its convenience and accessibility. It also afforded them basket consolidation, a feature previously exclusive to physical stores. According to Statista, global eCommerce sales reached US$4.28 trillion in 2020 and is projected to increase to $5.4 trillion in 2022.

Amazon Leads the eCommerce Pack

Among US online retail consumers, 70% are Prime members, 38% are Walmart+ members, and 10% are eBay, Target, and Kohl’s shoppers. Prime membership is the main reason people prefer Amazon as it provides unbeatable benefits like free shipping and 2-day delivery apart from excellent customer service and fast turnaround on returns, refunds, and replacements.

Conclusion

If you are a new Amazon seller, the tools, recommendations, and information discussed above will help you to zero in on the right category and pick a viable product to launch.

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