The Secret to Becoming a Best Seller and Niche Leader on Amazon

Top Strategies to Become a Niche Leader and Best Seller in Your Amazon Niche

According to research, an average of 4.4 million new businesses are formed annually. Unfortunately, over 45% of these businesses fail during the first five years of inception.

Why?

Because starting a new business is rarely an easy job.

Entrepreneurs are overwhelmed with tasks from the first day, from fine-tuning their products to meet customer needs and diving deep into their target market to fostering a loyal customer base.

And if your product/service falls into a “niche” category, you risk not finding customer demand, and if it’s too popular, you might drown in the competition. 

Especially on the Amazon market.

As a new, or seasoned seller with specialized offerings, learning to stand out and dominate a niche market is critical to building a successful business.

In this blog post, I’ll reveal the secret to becoming a niche leader on Amazon with Oleg Zaidiner, creator of aNavigator.

aNavigator is a PPC agency for Amazon sellers.

If you ever choose to work with aNavigator, mention my name, and you'll get a great offer.

My name is Vova Even, a seller on Amazon since 2016. Nice to meet you!

Oleg was also kind enough to share the framework for overcoming your competition on Amazon.

P.S. If reading isn’t your strongest suit, you can skip reading this and watch its video edition below:

What’s Stopping You From Dominating Your Target Niche?

Before we dive into the nitty-gritty of dominating your target niche on Amazon, let’s take a closer look at its prerequisites. Oleg Zaidiner reveals the reasons you struggle to become a niche leader: 

1. The online selling landscape is constantly evolving; while this only meant creating high-quality products in the past, now sellers need to display social proof and make improved items. It offers unique challenges when sourcing and selling products.  

2. In addition to crafting top-notch products and attracting positive customer reviews and ratings, sellers also need to be price-sensitive. As the competition increases, sellers must find the sweet spot between competitive pricing and high profit margin. 

Things to Consider Before Becoming a Niche Leader on Amazon

Now that we’ve covered the challenges Amazon sellers might face while overcoming their competition let’s discuss the three things you must consider to dominate your niche:

Growth Margin

Calculating your growth margin allows you to determine whether there’s an existing potential to become a niche leader.

Let's say your competitor sells kitchen knives for $15.

From that sum of $15, you should subtract the FBA fees, production costs, and shipping fees to determine the growth margin.

The number achieved is your gross margin, and once you divide it by the cost of goods, it should yield a value of one and a half or two, or more.

To simplify, if the product costs you $3, you should make $5 to $6 in profit (or more).

The higher the growth margin, the better, and the easier it will be for you to grow without external funding.

Note: I have an article about a service called Payoneer, which has a great funding option called Payoneer Capital Advance Offer.

Keyword Research

The second factor you need to consider to determine the potential to dominate a niche is keywords.

Your goal is to discover the most searchable keyword terms by leveraging Amazon Brand Analytics, Helium 10, Jungle Scout, or other similar tools.

These keywords also need to be relevant to your specific product, meaning the search intent behind a keyword matches what you have to offer against that keyword.

For example, if your target niche is “Fish Knives,” you can hunt its keywords in any robust software to determine its current rank.

However, if the term appears in the millionth rank on Brand Analytics (or your software will show you that it barely has search volume, or has low sales for that keyword), and it's your main keyword, you won’t ever become a niche leader. 

Alternatively, if you search “Kitchen Knives” on Amazon, and your product (that Fish Knife) appears in the first five searches, that means your product has considerable demand even for a big keyword.

Furthermore, if your desired product has 20 to 30k frequency per month in Brand Analytics, you’ll have a lot of traffic, this frequency is great. But you have to stay relevant.

On the contrary, if the product enjoys 100 to 200k Brand Analytics frequency (and it's the main keyword), generating the required sales velocity will be challenging.

Although if there are many keywords with such a higher frequency, that's pretty good.

Thus, your product should ideally have a set of keywords with a high enough search volume (or Brand Analytics frequency) for you to dominate the niche. 

Product Type

Lastly, to gauge the potential to become a niche leader, you must determine which category your product fits in.

1. One Goal – This involves products solving a clear customer problem and providing a single solution. For instance, a fish knife product has a single function and meets a particular buyer's intent of cutting fish.

2. Diverse Goals – This refers to items that don't have an exact problem to solve, or are just simply more diverse. For example, if someone is searching for 'jeans', they might only want to learn what types of jeans there are, or maybe they need summer jeans, or small skirt jeans. These types of products, or keywords, might be a part of a more complicated buyer journey.

If your product matches the second category, you’ll struggle to determine the customer journey to your listing. As a result, you’ll find it tricky to improve the customer journey to attract more sales. It is still doable, of course.

The Framework – Oleg Zaidiner’s Secret to Success

To dominate your target niche, you must showcase three primary characteristics:

1. High Sales Velocity – Without making the most sales, you won’t win Amazon’s Best Seller Badge, which is essential to becoming a niche leader. 

2. Profit – High-profit margin allows you to have budgets for investing in growth.

3. Growth Budget – A solid growth budget is important for buying more goods, and always having products in stock.

Wondering how you can achieve this? Here’s how:

An Enrapturing Product Offer

The first step to becoming a niche leader is creating an irresistible product offer. For this, you need to focus on three variables:

1. Price – Ensure you price your product competitively to avoid turning off customers. However, if your item does cost higher than the top sellers, it should be clear from the first image why your product is worth the price. Ideally, you should sell your product at a low price (aggressive price) until you generate enough sales and become the niche leader; then, you can define the niche’s price!

2. Positioning – The next step is positioning your product offer as the best solution to a customer's pain point or need. Like branding, positioning requires an in-depth understanding of your target buyer, their challenges, and their likes and dislikes. 

3. Social Proof – Lastly, you must generate social proof like reviews and ratings to grow brand awareness and drive traffic to your listing. Fortunately, on Amazon, sellers don’t have to invest in expensive advertisements or collaborations to generate and foster brand trust and awareness. 

Traffic

Secondly, you must drive qualified traffic to your product listing through the following:

1. Organic Searches – An excellent benefit of selling on Amazon is that every sale for a specific keyword will increase your organic ranking. That way, you will appear higher in Amazon’s algorithm and have loyal customers.

2. Amazon PPC – Another way to improve your search ranking and attract sales is using Amazon PPC. Ensure you gather in-depth data to create a great PPC campaign. That way, you will be able to improve your conversion rate significantly. Also, please do this before turning on your Amazon PPC.

3. Amazon-Specific Tactics – rebates (grey area), good Amazon listing optimization (for high conversion rates), coupons, buy 2 get 10% off offers, and many other Amazon techniques can be used to covert people into happy buyers.

Margin

Here too, we must consider three primary factors:

1. Inventory Consistency – More often than not, businesses lose money (and ranks) due to inconsistent inventory and out-of-stock products. One good software for inventory management is Sellerboard. 

2. Product Line – To become a niche leader, you must diversify your product line beyond selling one item. Ensure you provide color and size variations alongside different features to attract new buyers. You can also create cheap variations to attract buyers, and after clicking they'll be able to see your higher-priced items.

3. Cost of Goods – Remember, the lower the price of the goods you buy, the better profit you can generate.

Becoming a Niche Leader – Why Work With Navigator? 

Using robust service is a fantastic way to supercharge your Amazon FBA strategy and scale your business.

That’s where aNavigator comes into the picture!

aNavigator is a top-notch Amazon service that helps you create and manage PPC campaigns. They can do it all for you.

In addition, they provide you with recommendations on tactics, pricing, positioning, and product line creation, for you to become the leader in your niche.

Let Oleg and his team know you came via this blog post, via Vova Even, me, and you'll get a great offer for their services.

The Bottom Line

That’s all about becoming a niche leader! Hopefully, by now, you know the strategies and tactics to grow and scale your Amazon FBA brand.

I recommend you check out aNavigator to become a successful niche leader.

You can also surf through my YouTube channel or similar blogs to learn more about Amazon FBA. 

Until next time, stay tuned!

Yours, 

Vova :)

P.S - I welcome you to read more posts on my Amazon blog here.