Selling online can be very profitable, but not all products offer the same opportunities. Some are in such high demand and have so many sellers that they become difficult to position. These are known as highly competitive products.
In this article, we explain what they are, how to identify them, and whether you should really offer them in your online store.
What is a highly competitive product?
A highly competitive product is one that has a large number of sellers and stores offering it on the same channel or platform. These are usually very popular items that are in high demand, but also have a high supply, which makes it more difficult to stand out if you are just starting out or if your store is not yet well known.
Typical examples:
- Wireless headphones
- Cell phone cases
- Brand-name sneakers
- Well-known perfumes
- Stanley thermoses
- Official soccer jerseys
These products have high search volumes, but also lower profit margins, as competition leads to lower prices, more discounts, and competition for visibility.
Why do these products generate so much interest?
- They are trendy or fashionable
- They already have proven demand
- People search for them directly by brand name
- They are purchased on a recurring basis or in bulk
The problem is that there are no barriers to entry: anyone can import them, resell them, or even offer them through dropshipping, which saturates the market and makes it more difficult to scale sales without investing in marketing.
Is it a good idea to sell highly competitive products?
It depends on your strategy. There are two possible paths:
When it is a good idea to sell highly competitive products
You have enough capital to invest in online advertising (Google Ads, Meta Ads, influencers, etc.)
You already have a solid audience or a loyal community
You can differentiate yourself through your shopping experience, customer service, or fast delivery
You have access to wholesale or exclusive prices that give you a competitive advantage
You use remarketing and cross-selling tools to increase the average ticket
If you meet these criteria, you could enter a competitive market and still be profitable. But it requires investment and planning.
When it is NOT a good idea to sell highly competitive products
- You are just starting out with your online store
- You don’t have a budget for paid advertising
- You can’t compete on price without losing margin
- You don’t have a clear value proposition or differentiation
- You are going to depend on the product “selling itself”
In these cases, it is better to start with low- or medium-competition products, or even create a specialized (niche) store instead of choosing products that many people already sell.
How do you know if a product has high competition?
Some practical methods:
- Search for the product on Google and see how many stores offer it
- Check marketplaces such as Amazon or AliExpress to see how many sellers have it
- Use tools such as Google Trends, Semrush, or Ubersuggest to find out the search volume
- Analyze the number of ads on social media
- Check if there are many influencers promoting the same thing
If you find too much supply and promotion of the same product, it is probably highly competitive.
What alternatives are there?
If you don’t want to compete in saturated markets, here are some alternatives:
- Niche products: less overall demand, but with a specific and committed audience. Example: vegan supplements, Korean cosmetics, products for left-handed people.
- Personalized or unique products: such as items with your own designs or made to order.
- Own brands: if you can develop your brand, you have more control over pricing and differentiation.
- Product combos: offer kits or bundles that others don’t offer.
The key is to have a clear value proposition. It’s not about inventing something new, but selling it differently.
Practical tip
Before deciding what product to sell, consider the following:
- Are there many stores selling it?
- Does the average price allow for a good margin?
- Can you stand out in any way?
- Do you know the audience that buys it well?
If most of the answers are no, that product may not be the best option to start with.
Where to sell products with high or low competition?
Having your own online sales channel is key to growing without depending on platforms that charge commissions or control your rules.
Neolo Shop is a platform created for entrepreneurs throughout Latin America and Spain. With Neolo:
- You get 30 days free trial
- You don’t pay commissions on sales
- You use your own domain for both the store and emails
- You get fast and friendly customer service via WhatsApp
Whether you sell products with high or low competition, having a solid and reliable platform will allow you to grow with more freedom.
Frequently asked questions (FAQs)
What is a high-competition product?
It is a product with high demand but also with many sellers, which makes it more difficult to position.
Is it a good idea to sell popular products?
Only if you can invest in marketing, stand out with your proposal, and offer a better experience than the rest.
What types of products are most recommended when starting out?
Products with low or medium competition that meet specific needs or that you can customize.
How do I know if there is a lot of competition?
Search for the product on Google, marketplaces, and social media. If it is saturated with sellers, it is highly competitive.
What do you need to sell highly competitive products?
A clear strategy, advertising budget, differentiation, and automation tools.
Can I sell without paying commissions on each sale?
Yes. With Neolo Shop, you have your own store, with no sales commissions and your own domain.