Competitive Advantage Examples

5 Competitive Advantage Examples That Most People Miss

Having sold on Amazon, eBay, and other places online for – and also teaching how to do the same – I always get asked the same questions that all revolve around the same concept – competitive advantage.  Before I go too deep into what I feel are awesome competitive advantage examples, I want to first go into what competitive advantage is not.

Non-competitive advantage examples that everybody and their mom think are great (but aren't)

It's funny to hear the responses when I ask Amazon sellers what their competitive advantage is in their business.  I usually get a mix of the following:

  • Getting clearance items from a local retail store
  • Flipping items from eBay to Amazon
  • Flipping items from Amazon to Amazon
  • Bundling products and creating new listings on Amazon
  • and so on and so forth…

Look, those aren't competitive advantages… those can be very lucrative, but the problem is that anyone can do it.  The moment 2 or 3 people in your area find out what you are doing (and they don't even have to be in your area) they'll do it too.  The barrier to entry for your competition is super small.

I've been teaching people how to do Amazon Sponsored Ads and one of the comments that keeps coming up is the realization of people that they can type a few letters in the Amazon search bar and see what other people have been searching for (you know, the auto-suggest thing that pops up when you search).  Yes, the auto-suggest tool is a great way to find some keywords to start your campaign off with – but guess what…  other people can do the same thing.  It's not a big secret.  While it may work now because nobody is using Amazon Sponsored Ads yet, in the next year or so that little trick won't work at all.

Look… A competitive advantage is something that you have access to, something that you've built, or something you know that others cannot easily replicate even if they wanted to.

Real examples of competitive advantages

Alright, let's get into some real competitive advantage examples that I think will help.  Remember that are goal is to create or find something that others can't easily duplicate.  Do these take some work ? Heck yes…

Are they worth it?  Yup!

  1. Building a network of suppliers – Whether you are reselling or wholesaling, the stronger and broader you build relationships with suppliers (heck they can be people that do garage sales all of the time) not only will you have a steady stream of product – you'll have access to product before anyone else and usually cheaper than anyone else.
  2. Building relationships with folks that have access to capital – The more access that you have to capital the better deals you can get.  Building win-win relationships with people that want to invest their capital into what you are doing is a great way to get deals that others can't.  Plus you usually get access to their network as well.
  3. Build a complex web of discounts and marketing – Building in gift card arbitrage, coupon engineering, sponsored ads, and so on can be powerful.  Most people don't take the time to find a gift card supplier let alone spend the time couponing (which is tough work).  Couple all of those things with Amazon sponsored ads and you can have some serious selling on your hands.
  4. Creating a complex marketing funnel that builds your brand – A lot of Amazon and eBay sellers want to sell the information that they know.  The problem is that they have a hard time not sounding just like everyone else.  The herd of Amazon sellers are on Spreecast and have an email list, but I can't think of a single one that is running direct mail, mobile marketing, email marketing, webinars, and so on all at the same time.  Building a web of marketing that nobody else can duplicate and one that builds your brand is a competitive advantage.
  5. Private label products – This should be an obvious one, but the faster you can put out products that have your own brand associated with them and that you own exclusive rights to, the faster you have an asset that can make consistent income that nobody else can touch.  Even if they were to try to duplicate the product if you've built your brand, reviews, customer base, etc., it'll be very hard to touch you.


I hope that these competitive advantage examples help.  One key thing to have in the back of your mind is that these advantages usually evolve slowly.  Be patient… do what nobody else can duplicate.



About The Author

Dean Soto

Founder of the Online Empire Academy and creator of