Not sure if this has been mentioned before, but it's worth repeating. Before you begin a site or pick a product, check out Amazon's list of excluded products (can't post a link, but you can Google it). You don't want to sell something ineligible for commission.
If you're using the free Google keywords tool, you're using a tool designed for Adwords customers. The "competition" score on there signifies how much competition there is for those keywords among people who are buying ads from Google. So it isn't accurate to use it in a general "competition" sense.
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