This is exactly the kind of product that I love to find: it is right in the niche, it has plenty of reviews (meaning people will be likely to buy when visiting the page), and it's in the sweet price spot (not too expensive but also not too cheap). Therefore, I definitely like what I am seeing on Amazon for this niche.
You should also make sure that there are decent commissions in the niche you are considering. For example, general consumer electronics goods (like TVs) sound like good ideas for a niche, but the commission on those products is very small and therefore should be avoided. You can find the up-to-date list of commissions here.
At this stage, you can actually estimate how much your future website (or your competitors) will make per month. Let's take again the coffee example, with our competitor has 55,000 visits a month. From my own websites, I see that on a good page reviewing products, about 25% of the persons are clicking on the links and going to Amazon. Then, about 10% of those persons actually buy on Amazon. We also know we have a 4.5% commission on those products, and that the average product is at $50. Therefore, I calculated that this website is making about $3100 per month. Not too bad for a website started just some months ago.
Inside the next step of the process, I like to look at future opportunities for the niche. For example, I love niches where I can actually sell my own products in the future. This can be a digital product like an eBook or video course, a physical product, or a piece of software. For example, in one of my niches I created video courses that perfectly complement the physical products I am recommending on the site.
For the example that we took in this article, it might be possible to come up with an eBook about coffee. However, it might be very difficult to sell your own physical product or to come up with a piece of software to help your audience in this niche.
Note that here I am really talking about future opportunities as I really don't recommend thinking about your own products when you are just starting a site, as you don't know yet what works and what doesn't work.
Selecting the Niche
It's finally time to make a decision and select a niche for your authority website! There are many things you can do at this point, but what I usually like to do is first to eliminate the ideas that I am sure won't be profitable. For example, a niche where there is no traffic to the keywords I want to target, or no way to make money from affiliate programs. After that, I give a mark to each of the niches at each step of the process, over 5 points (for keyword research, competition analysis, initial monetisation, and future opportunities). I then simply select the best niche in my list, and store the rest for future websites.
I really hope that this process will help you find an idea for your next profitable website, and if you have any questions or comments let me know!