Niche Rater Category Breakdown

How is the Niche Rater rainbow calculated? Understanding the Niche Score: Demand, Competition Opportunity, Investment & Revenue Potential.

Kimberlee French avatar
Written by Kimberlee French
Updated over a week ago

We pride ourselves on data. Thanks to our partnership with Amazon, we’re able to calculate a niche’s potential based on four exclusive ZonGuru metrics:

  1. Buyer Demand

  2. Competition Opportunity

  3. Investment Sweet Spot

  4. Revenue Potential

But what do these metrics really mean? Let’s review some common questions:

Does the Niche Rater rainbow reflect the marketplace I’m searching within or is it always the USA?

ZonGuru provides targeted metrics for the marketplace you are searching within. In addition, all results are displayed in the local currency and Buyer Demand metrics are scaled to better reflect the size of the market. For example, if you are searching Yoga Mats on we will ONLY give you data relevant for this niche within the UK marketplace.  

This means you always have access to the most accurate information for your business decisions.

What is better, a high % or a low %?

The higher the better! The higher the % scores for each Niche Rater category the more opportunity the niche presents.

Keep in mind this is an overall guide. Every seller will have different business requirements. It’s important to understand the different Niche Rater metrics so that you can make product decisions that best fit your own business needs.

What is Buyer Demand?

Buyer Demand is essentially how in demand the item is. It’s based upon a combination of data points including exact monthly search volume and monthly sales volume for the organic keyword listings.

What is Competition Opportunity?

Competition Opportunity is a measure of how fierce the competition is. This metric is based upon the combination of our Listing Strength Indicator and the number of strong versus weak competitors appearing on the page.

Our Listing Strength Indicator takes into account multiple data points like ratings, titles, images, bullets, EBC, etc. The weaker the competition and Listing Strength Score, the higher the Competition Opportunity rating because there is more elbow room to beat the competition!

What is the Investment Sweet Spot?

Investment Sweet Spot is how much money you need to invest to stay competitive. Ideally, sellers should have sufficient funds to cover three months of inventory at page one’s average monthly sales volume.

The recommended launch budget is a range between 10K-15K. The closer your niche is to this launch budget the higher the Investment Sweet Spot rating. We believe this Investment Sweet Spot is well placed for Private Label Sellers.

Pro Tip: If you have a higher propensity for risk, you can of course adjust this number!

What is Revenue Potential?

Revenue Potential is how much money you stand to make. This metric reviews the profit existing listings are generating as well as your potential sales volume. This is an overall score of the potential to capture revenue and profit.

What is a ‘Good’ Niche Score?

The total Niche Score is an average of the four subcategories described above. These are the percentages that we think constitute Low, Medium, and High

0%-20% Very Low

20%-40% Low

40%-60% Medium

60%-80% High

80%-100% Very high

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