Online Competition Guide

Step-by-Step Guide: Research Online Competition Using Amazon + eBay

Do this for each niche idea before you commit to building a dropshipping store


Step 1: Create a “Niche Competition Tracker” (1 page per niche)

Use a doc/spreadsheet and copy this template for each niche idea:

  • Niche Idea:

  • Target Customer:

  • Problem Solved:

  • Core Product Types (3–5):

  • Top Amazon Keywords:

  • Top eBay Keywords:

  • Amazon Price Range:

  • eBay Price Range:

  • # of Listings / Results:

  • Top Sellers / Brands:

  • Best-Seller Signals:

  • Common Customer Complaints:

  • Opportunity Gaps:

  • Your Differentiation Angle:

  • Verdict (Green / Yellow / Red):


Step 2: Break the Niche Into Searchable “Product Phrases”

A niche is too broad to search directly. Turn it into real buyer searches.

Use these phrase types:

  • Product + audience: “travel backpack for women”

  • Product + problem: “dog anxiety calming bed”

  • Product + feature: “space saving hangers”

  • Product + use case: “kitchen organizer for small cabinets”

Action (per niche):
Write 10 search phrases a buyer would type to find products in this niche.


Step 3: Amazon Research (Demand + Competition Reality)

A) Run 3 Amazon Searches Per Niche

Search:

  1. broad niche phrase

  2. problem-based phrase

  3. feature-based phrase

What to record:

  • How many results show up (roughly)

  • The first 10 products you see

  • Any big brands that dominate page 1

Rule of thumb:

  • Too few results can mean low demand

  • Too many results can mean heavy competition
    (You’re looking for a niche angle that can be positioned clearly.)


Step 4: Amazon “Proof of Demand” Signals (What to Look For)

Open the top listings and look for:

A) Review Volume

  • Look at how many reviews top products have

  • Check if reviews seem recent and consistent

Quick guide:

  • 1,000+ reviews on many products = strong demand (but likely competitive)

  • 100–500 reviews = healthy demand, often workable

  • Under 50 reviews across the board = possible weak demand (or new niche)

B) Rating Patterns

  • Are products stuck at 3.8–4.1? That often signals a quality gap you can solve.

  • Are products at 4.7+ with tons of reviews? Harder to beat unless you brand.

C) Price Ladder

Record:

  • cheapest

  • most common

  • premium

Action (per niche):
Write the true price range customers are already paying.


Step 5: Amazon “Positioning” Analysis (This Helps Your Store Design)

Look at:

  • Titles: what words repeat?

  • Images: what features do they highlight?

  • Bullets: what benefits do they promise?

Action:
Write down the top 10 repeated benefit phrases.

Examples:

  • “easy to install”

  • “odor control”

  • “space saving”

  • “non-slip”

  • “portable”

  • “heavy duty”

These become:

  • your product page copy

  • your category filters

  • your homepage messaging


Step 6: Amazon Complaints Mining (Your Differentiation Gold)

Go to 1-star and 2-star reviews.

Look for repeated complaints:

  • “cheap material”

  • “too small”

  • “didn’t match photos”

  • “breaks quickly”

  • “instructions unclear”

  • “not worth the price”

  • “shipping took too long”

  • “missing pieces”

Action (per niche):

  • Collect 10 common complaints

  • Circle the top 3 recurring pain points

  • These are your “we do it better” angles


Step 7: eBay Research (Reality Check on Prices + Saturation)

eBay is excellent for:

  • real-world pricing

  • market saturation

  • product variety

  • what sells “cheap” vs “premium”

  • competition intensity

A) Search Your Same 10 Phrases on eBay

For each search phrase, record:

  • approximate number of results

  • top listing prices (first page)

  • whether it’s mostly “junk” or quality-looking


Step 8: Use eBay Filters Like a Pro (This Matters)

For each phrase, filter by:

A) “Sold Items” (Critical)

Turn on:

  • ✅ Sold items

  • ✅ Completed items

This tells you what people actually bought.

Action:
For each niche, capture:

  • 10 sold items (screenshot or notes)

  • their prices

  • what features they emphasize

B) Sort by “Best Match” then “Price + Shipping: lowest”

This reveals:

  • whether the niche is a race-to-the-bottom

  • if cheap sellers dominate

Red flag:
If almost everything sells only at extremely low prices with free shipping, margins may be tough.


Step 9: Competition Strength Check (Amazon + eBay)

For each niche, answer these:

A) Brand Dominance

  • Are the same brands everywhere on page 1?

  • Are there many “generic” sellers?

Interpretation:

  • Brand-dominated = harder to enter without branding

  • Generic-heavy = easier to differentiate with curation and trust

B) Listing Quality

  • Are photos bad?

  • Are descriptions unclear?

  • Are bundles missing?

Opportunity:
If listings are weak, a better brand + website can win.


Step 10: Identify “Online Gaps” You Can Build a Store Around

Look for gaps such as:

  • no specialized store focused on one audience

  • no product bundles/kits

  • no education or guides

  • unclear sizing compatibility

  • too many confusing options

  • low trust (generic brands + poor photos)

Action (per niche):
Write 3 “gaps” you can build your store around.


Step 11: Choose Your Competitive Strategy (Pick One)

For each niche, choose one primary strategy:

  1. Curated Best Picks
    “Only the top-rated, best solution for X.”

  2. Bundles/Kits
    “Everything you need in one package.”

  3. Audience-Specific
    “Designed specifically for [audience].”

  4. Premium Look + Trust
    Better product photos, better messaging, clear guarantees.

  5. Education-Based Store
    Buyers guides, quizzes, comparisons, tutorials.


Step 12: Score the Niche (Green/Yellow/Red)

Score 1–5 for each:

  • Demand strength (reviews + sold items)

  • Competition intensity (brand dominance + saturation)

  • Price flexibility (not a pure race-to-bottom)

  • Gap opportunity (real complaints and weak listings)

  • Brand potential (can it become a “store” not just products?)

Verdict:

  • Green: build store concept + product list

  • ⚠️ Yellow: narrow the niche angle (more specific audience/problem)

  • Red: drop it or pivot niche


Quick Checklist Per Niche Idea

For each niche, you should end with:

  • ✅ 10 buyer search phrases

  • ✅ Amazon: 10 top listings reviewed

  • ✅ Amazon: 10 complaint notes from low reviews

  • ✅ eBay: “sold items” proof captured

  • ✅ price range from both platforms

  • ✅ 3 gaps identified

  • ✅ 1 differentiation strategy chosen

  • ✅ final score + verdict