Is there a lot of competition on Amazon?

Amazon is a huge international online marketplace that provides opportunities for millions of sellers from all over the world. Therefore, it would be ridiculous to say that there is no competition on the platform.

But there are “mitigating” factors that allow you to look at the situation from a different angle and demonstrate that everything is not as bad as it might seem at first glance. So let’s take an honest and unvarnished look at what competition on Amazon is like and how a novice entrepreneur can win market share.

What scares beginner sellers the most

1. The number of sellers. According to not the most recent data, more than 2.5 million entrepreneurs are registered on Amazon..

2. Competitors with experience. Many sellers have been on the market for a long time and have extensive experience in e-commerce. They have the best knowledge of the platform, listing optimisation, and marketing strategies. In addition, the platform features well-known brands with a good reputation, which newcomers have nothing to oppose.

3. Financial constraints. Competing with large companies may require significant financial investments in production, marketing, and logistics, which is very difficult for small businesses.

4. Marketing efforts. Selling on Amazon is inextricably linked to effective marketing. Competing with companies that have large advertising budgets seems to be a difficult task.

Why you shouldn’t be afraid of all this

Firstly, quantity does not mean quality. A huge percentage of the 2,500,000 sellers came to the marketplace to make a quick buck, influenced by trends, online business coaches, or their own dreams of doing business easily.

So, if you weed them out, it turns out that you need to compete with professionals who build strategies and know how to do business in the long term. Which looks even less rosy.

However, there is a counter-argument here as well – Amazon is full of low-competitive niches. By choosing one of them, you will definitely not feel pressure from more experienced colleagues or promoted brands and will not share the target audience with them.

Plus, you have room for manoeuvre when it comes to choosing the product you enter the market with. Even if you take something standard as a basis, but optimise and improve it, you can already become a serious competitor.

As for marketing and financial expenses, the platform has a pretty good programme to support small businesses.

And in conclusion, I would like to supplement these arguments with a quote from E. Rotterdam: “There is a merchant for every commodity”.

About 30 million transactions are made on the platform every day. Your product, provided that it is of high quality and unique, will definitely not be overlooked.

Narrow niche, Amazon ads, optimised listing, and other ways to avoid competition

As you have already understood, launching sales on the platform is not an easy task. This is especially true if you decide to start it on your own, without the support of an experienced team (which we strongly advise against).

Check out our Comprehensive Amazon Business Startup service to help you choose an effective long-term strategy, the right product, the right niche, and not be afraid of high competition.

We will also give you some tips that can protect you from failure:

  1. Identify the uniqueness of the product. Before you start selling on Amazon, identify what makes your product unique. Perhaps it’s a new improvement, an additional feature, or a unique design. Try to offer something that other sellers don’t have to attract the attention of buyers.

  1. Explore niche markets. It is always difficult to enter a popular and competitive niche. Therefore, explore niche markets where demand is not as high and competition is less. Focus on quality and uniqueness to attract loyal customers.

  1. Optimise your listing. Include keywords in the product title and description, use high-quality images, and provide useful features.

  1. Pay attention to feedback and reviews. Quality service and satisfied customers will help improve your ranking on the platform, which in turn will attract new customers.

  1. Study your competitors: monitor their actions and strategies. This will help you understand their advantages and disadvantages, which will allow you to adapt your approaches to the market.

Conclusion: Gaining market share on Amazon can be challenging for a new entrepreneur, but it’s not impossible. Product uniqueness, good listing optimisation, a low-competitive niche, and marketing efforts will help you successfully overcome the competition and build a thriving business on this platform.

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