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:
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Niche Idea:
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Target Customer:
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Problem Solved:
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Core Product Types (3–5):
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Top Amazon Keywords:
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Top eBay Keywords:
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Amazon Price Range:
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eBay Price Range:
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# of Listings / Results:
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Top Sellers / Brands:
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Best-Seller Signals:
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Common Customer Complaints:
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Opportunity Gaps:
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Your Differentiation Angle:
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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:
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Product + audience: “travel backpack for women”
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Product + problem: “dog anxiety calming bed”
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Product + feature: “space saving hangers”
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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:
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broad niche phrase
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problem-based phrase
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feature-based phrase
What to record:
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How many results show up (roughly)
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The first 10 products you see
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Any big brands that dominate page 1
Rule of thumb:
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Too few results can mean low demand
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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
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Look at how many reviews top products have
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Check if reviews seem recent and consistent
Quick guide:
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1,000+ reviews on many products = strong demand (but likely competitive)
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100–500 reviews = healthy demand, often workable
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Under 50 reviews across the board = possible weak demand (or new niche)
B) Rating Patterns
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Are products stuck at 3.8–4.1? That often signals a quality gap you can solve.
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Are products at 4.7+ with tons of reviews? Harder to beat unless you brand.
C) Price Ladder
Record:
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cheapest
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most common
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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:
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Titles: what words repeat?
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Images: what features do they highlight?
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Bullets: what benefits do they promise?
Action:
Write down the top 10 repeated benefit phrases.
Examples:
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“easy to install”
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“odor control”
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“space saving”
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“non-slip”
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“portable”
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“heavy duty”
These become:
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your product page copy
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your category filters
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your homepage messaging
Step 6: Amazon Complaints Mining (Your Differentiation Gold)
Go to 1-star and 2-star reviews.
Look for repeated complaints:
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“cheap material”
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“too small”
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“didn’t match photos”
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“breaks quickly”
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“instructions unclear”
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“not worth the price”
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“shipping took too long”
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“missing pieces”
Action (per niche):
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Collect 10 common complaints
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Circle the top 3 recurring pain points
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These are your “we do it better” angles
Step 7: eBay Research (Reality Check on Prices + Saturation)
eBay is excellent for:
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real-world pricing
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market saturation
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product variety
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what sells “cheap” vs “premium”
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competition intensity
A) Search Your Same 10 Phrases on eBay
For each search phrase, record:
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approximate number of results
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top listing prices (first page)
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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:
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✅ Sold items
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✅ Completed items
This tells you what people actually bought.
Action:
For each niche, capture:
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10 sold items (screenshot or notes)
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their prices
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what features they emphasize
B) Sort by “Best Match” then “Price + Shipping: lowest”
This reveals:
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whether the niche is a race-to-the-bottom
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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
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Are the same brands everywhere on page 1?
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Are there many “generic” sellers?
Interpretation:
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Brand-dominated = harder to enter without branding
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Generic-heavy = easier to differentiate with curation and trust
B) Listing Quality
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Are photos bad?
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Are descriptions unclear?
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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:
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no specialized store focused on one audience
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no product bundles/kits
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no education or guides
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unclear sizing compatibility
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too many confusing options
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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:
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Curated Best Picks
“Only the top-rated, best solution for X.” -
Bundles/Kits
“Everything you need in one package.” -
Audience-Specific
“Designed specifically for [audience].” -
Premium Look + Trust
Better product photos, better messaging, clear guarantees. -
Education-Based Store
Buyers guides, quizzes, comparisons, tutorials.
Step 12: Score the Niche (Green/Yellow/Red)
Score 1–5 for each:
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Demand strength (reviews + sold items)
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Competition intensity (brand dominance + saturation)
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Price flexibility (not a pure race-to-bottom)
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Gap opportunity (real complaints and weak listings)
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Brand potential (can it become a “store” not just products?)
Verdict:
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✅ Green: build store concept + product list
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⚠️ Yellow: narrow the niche angle (more specific audience/problem)
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❌ Red: drop it or pivot niche
Quick Checklist Per Niche Idea
For each niche, you should end with:
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✅ 10 buyer search phrases
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✅ Amazon: 10 top listings reviewed
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✅ Amazon: 10 complaint notes from low reviews
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✅ eBay: “sold items” proof captured
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✅ price range from both platforms
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✅ 3 gaps identified
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✅ 1 differentiation strategy chosen
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✅ final score + verdict