Hmmm. You know what? If i'm going to be honest about it, I don't actually have a number for what the right amount of competition is. Less is better. More is worse - but that's obviously completely relative and I now realize that I need to come up with something more quantifiable. I probably got that type of mindset after I read @Ecom man 's thread (and many other ebooks/programs on importing) and would see a lot of what he did (after reading that thread is when I took the jump into importing).My niche has 2k listings in the "all categories" search. However, the top 3 guys are doing 1k+ sales a month. When I was entering this niche, I told myself "I just need 10% of their combined sales and I'll be happy". Turns out, I get about 30% of their combined sales.
So my key determinant in entering a niche or not is that the top 3 listings (PL listings) are selling 3k+ units combined monthly.
That's talking about only having five competitors - but I'm sure @Ecom man has his own way of doing things completely different than the rest of us... it'd be awesome if we could create a separate thread (I don't want to hijack @biophase 's ) and have all of the guys who are successfully importing and selling on Amazon/ebay/ecommerce talk about their individual processes.. I'm sure there's a bunch of similarities but the differences in philosophies and processes would be fascinating.The thing about competitors is all it takes is one stupid one to kill your profit margin. Obviously the less compitition the better margins will be. 5 competitors isn't bad as long as the margins are in the 100%+ range. If 5 of them haven't dropped prices where there is no money to be made you should be ok.
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