Amazon Category Insights: Pick Winning Niches Fast

Every category node on Amazon is a niche market. Category Insights helps you identify the best niche by comparing, analyzing, and filtering multiple metrics based on your positioning and strengths.

A typical workflow for Category Insights is:

Filter Markets → Analyze Market → Review Benchmark Listings → Source Products → Calculate Profitability

Following this flow, you can efficiently validate and select products ready for launch.

If you have already shortlisted items using other SellerSprite tools, you can also use Category Insights to verify whether the product's niche is suitable to enter.

1. Filter Markets

Choose a main or sub-category, then sort all niches by any metric to quickly locate markets that match your selling strategy.

• For new sellers: Sort by "New Products Ratio" (desc). Higher ratios signal more openings. Note: Fast-iteration categories (e.g., Apparel) naturally rank high; avoid if you're unfamiliar.
• For strong sellers: Sort by "Monthly Units Sold" to target large, high-demand markets.
• For small/medium sellers: Sort by "Product Concentration" (asc). Lower concentration = less monopoly and lower competition.

You can also add filters to narrow results by business scale.

Example for smaller budgets:

• Set average price to $10–$30.
• Set product concentration to <50%.
• Then sort by New Products Ratio.

Each metric offers a quick overview. Hover over the "?" icons to see detailed explanations.

For example, Avg. Number of Sellers Per Product reflects how many sellers offer the same item. Higher numbers suggest higher competition but also stronger demand.

Once you're familiar with the metrics, set your own filters to run targeted screening.

2. Analyze Market

After initial screening, click any niche to open the Market Analysis Report for an in-depth evaluation.

The report covers nine dimensions: market demand & trends, product concentration, brand concentration, seller concentration, seller type, launch time, launch time trends, rating count, and rating. Together they explain demand, competitiveness, and entry difficulty.

Example: Launch Time Distribution helps assess how hard it is for new products to enter. A higher sales share for listings aged 1 month–1 year suggests buyers are open to new products.

3. Review Benchmark Listings

After confirming a niche, click the link at the top of the Market Analysis Report to open TOP Products Detail (100).

Identify listings that:

• Are recently launched.
• Have stable or growing review counts.
• Maintain consistent sales.

These will serve as strong benchmarks for product development and listing optimization.

4. Profitability Calculation

After selecting your benchmark ASIN:

• Click 1688 Sourcing or Alibaba under the product to find matching suppliers.
• Open the Profitability Calculator on the right and enter costs to estimate margins instantly.

Verify Market Feasibility

Category Insights is also ideal for validating a niche you plan to enter.

If you chose products via Product Research, Competitor Research, or Keyword Research, jump directly to the relevant niche for validation.

On Product Research and Competitor Research pages, click Market Analysis under any product to open the Market Analysis Report.