The brand new Niche Rater tool provides a snapshot of the profitability, competition, budget, and demand of the niche you're interested in.
But what do these percentages really mean?
Well, we want to make sure you have the best understanding of the data possible. Take a look at our breakdown below for each of the categories displayed in the Niche Rater!
Buyer Demand is based on a combination of a few data points. Most importantly: monthly exact search volume PLUS monthly sales volume for the organic listings for the keyword shown.
As a guide an average score would meant that monthly searches would be in the range of 4,000 - 6,000, and monthly units sold would be in the 300-500 monthly units sold.
Competition Opportunity is based on the combination of our Listing Strength Indicator (LS) and the number of strong versus weak competitors appearing on the page. Listing Strength takes into account many key data points like reviews, titles, images, bullets, EBC, etc. The weaker the competition and Listing Scores, the higher the rating because there is more opportunity to beat the competition!
- Investment Sweet Spot
Investment Sweet Spot is based on data surrounding the calculated launch budget (3 months of inventory at page 1’s average monthly sales volume). The recommended launch budget is a range between 10K-15K which gives you maximum points for investment within that range. The further away from that, the less points you will get. We believe this investment sweet spot is well placed for Private Label Sellers. If you have a higher propensity for risk, you can adjust this number.
- Revenue Potential
For Revenue Potential we calculate the profit that listings are generating. We also look at additional key indicators which help to determine what sales volume you might be able to capture. This will give you a combination score based on the potential to capture revenue and profit.
- Niche Score
Finally, 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
80%-100% Very high