Evaluating Competition and Demand for Your Product Ideas

This guide shows you a simple, repeatable way to validate Amazon product ideas using multiple signals: page 1 competition, Amazon demand, search volume, and cross-platform proof from Etsy.

Examples below focus on Amazon US and Etsy US. The exact numbers change by marketplace, so if you sell in the UK, DE, CA, JP, or any other site, repeat the same workflow after switching to that market and re-pulling the data.

Table of contents

1. The 5-step workflow
2. Step 1: Evaluate Amazon competition (page 1 competitor count)
3. Step 2: Estimate Amazon demand (top ASIN revenue and review reality check)
4. Step 3: Add search volume (Amazon and Google)
5. Step 4: Estimate Etsy demand and revenue (cross-platform validation)
6. Step 5: Score and prioritize product opportunities
7. Spreadsheet template (fields and example row)
8. FAQ
9. References

The 5-step workflow

Use this exact order, so your spreadsheet stays consistent across every product idea:

1. Pick one clear keyword that describes the product idea (long-tail if possible).
2. Count page 1 competitors on Amazon (only true direct competitors, ignore sponsored).
3. Pull Amazon demand signals (top ASIN revenue estimate, ratings, review barriers).
4. Add search volume (Amazon search volume, optional Google search volume for context).
5. Validate cross-platform demand on Etsy by estimating top listing revenue.

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Step 1: Evaluate Amazon competition (page 1 competitor count)

Your first job is to measure how crowded the niche is. We do that by counting how many direct competitors appear on page 1 of the Amazon search for your keyword. This is fast, free, and surprisingly effective when you do it consistently.

Count page 1 competitors (manual method)

1. Search for your keyword on Amazon.

   Example: tea infuser mug on Amazon.com.

2. Ignore sponsored results.

   Skip anything labeled Sponsored. Those are paid placements, not organic competitors.

3. Only count direct competitors.

   Count the listings that match the same product type you plan to sell. Do not count adjacent items that solve a different problem.

4. Remove duplicates and obvious variants.

   If the same product shows multiple times (variants, bundles, repeats), count it once.

5. Record the final number in your sheet.

   Use one consistent rule set so your counts are comparable across ideas.

How to interpret the competitor count

• Low (about 0 to 10): Often a green flag, but validate demand next. Low competition with low demand is not helpful.
• Medium (about 10 to 30): Competitive but potentially winnable with differentiation and strong execution.
• High (30 plus): Saturated. Not impossible, but you will need a clear edge and stronger marketing to earn traction.

Step 2: Estimate Amazon demand (top ASIN revenue and review reality check)

The competition count tells you how crowded page 1 is. Now you need demand strength. The easiest practical demand signal is: how much revenue the top listing is making (or how much the top few listings are making).

How to pull top listing revenue

1. Find the top 1 to 3 organic listings for your keyword (ignore sponsored).
2. Estimate revenue with a tool (SellerSprite Competitor Lookup is designed for this).
3. Record either the top listing revenue or an average of the top 3, depending on your scoring style.
4. Add context notes like price range, rating, and review count barriers.

Quick quality check: ratings and reviews

• Ratings: If top listings are consistently 4.5 plus, customers are broadly satisfied. You need a clear edge to compete.
• Review count: Hundreds or thousands can be a real barrier. Lower counts can mean an easier path to social proof.
• Review themes: Read 3-star and 4-star reviews for improvement opportunities (breakage, size, cleaning, missing features).

Step 3: Add search volume (Amazon and Google)

Search volume helps you understand how often shoppers look for your keyword. It is most useful when paired with competition and revenue estimates.

Get Amazon search volume with SellerSprite

1. Open SellerSprite Keyword Research and select your marketplace.
2. Enter your main keyword (use the same wording you used for competitor counting).
3. Record: Amazon search volume, trend/seasonality, and 2 to 5 closely related keywords if helpful.

Optional: cross-check with Google search volume

Google volume is not a replacement for Amazon volume, but it can help you sanity-check overall interest, especially for products that may be driven by external traffic (social, content, gifting seasons). Use it as a secondary signal.

Step 4: Estimate Etsy demand and revenue (cross-platform validation)

Why look at Etsy? Because Amazon's demand alone does not always tell the full story. Etsy can reveal whether a design style or niche variation has real buyer behavior in a different marketplace. This can be especially helpful for handmade-leaning categories, giftable items, and design-driven products.

How to estimate Etsy revenue with a simple review-share method

Etsy does not always give you easy keyword search volume. Instead, we estimate demand from real sales behavior using shop-level sales and review ratios. This is a practical hack for quick validation.

1. Search the product on Etsy using your keyword or a close description.
2. Ignore ads labeled Ad by Etsy sellers, then focus on truly relevant items.
3. Pick 2 to 5 top listings that match your product idea.
4. Open each listing and record the item review count.
5. Open the seller shop page and record total shop reviews and total shop sales.
6. Estimate item lifetime sales using the ratio below, then multiply by price to estimate revenue.

Worked example (illustrative numbers)

Below is a simple example using the method. Treat it as a template you can copy into your sheet:

• Item A: Item Reviews 13, Shop Reviews 701, Shop Sales 860, Price $60
• Estimated Item Sales = (13 / 701) x 860 = about 16
• Estimated Item Revenue = 16 x $60 = about $960
• Item B: Item Reviews 31, Shop Reviews 97, Shop Sales 2,828, Price $6
• Estimated Item Sales = (31 / 97) x 2,828 = about 902
• Estimated Item Revenue = 902 x $6 = about $5,412

Step 5: Score and prioritize product opportunities

At this point, you should have enough data to compare ideas objectively. The goal is not to find a perfect product. The goal is to find the best opportunity among your options with the same scoring rules.

A simple scoring framework (1 to 5)

Use a 1 to 5 score for each dimension, then total them. Keep it simple so you can apply it to 30 to 100 ideas without overthinking.

Spreadsheet template (fields and example row)

Your spreadsheet is the system that keeps your decisions consistent. Below is a simplified layout you can copy. Add more columns later if you need them, but start with these.

FAQ

How many competitors on page 1 is too many?

There is no universal cutoff, but once you consistently see 30 or more direct competitors on page 1, you should assume you need stronger differentiation and a bigger plan for traffic and conversion. If you are new, prioritize ideas with manageable counts unless demand is exceptional.

What if one Amazon listing dominates revenue?

Treat it as a warning sign. The demand is real, but the niche may be winner-takes-most. Look for the reason why the winner is winning (design, price, brand, bundling, listing quality), then decide if you can realistically out-position them.

What if Etsy has no relevant results?

Mark Etsy as N/A and move on. Etsy validation is helpful, not mandatory. Many practical, utilitarian products sell well on Amazon but do not fit the Etsy buyer intent.

Should I use lifetime Etsy revenue or monthly?

The method above is typically closer to lifetime estimation. That is fine for validation. You are comparing relative strength across ideas, not forecasting exact monthly performance.

References

• Amazon independent sellers and third-party selling overview
• Etsy Q4 and full year 2024 results (active buyers, GMS, marketplace context)
• SellerSprite Competitor Lookup
• SellerSprite Keyword Research
• Competitor Lookup guide (help center)
• SellerSprite Chrome Extension (Chrome Web Store)

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