It doesn’t matter how many people are selling the same product. As long as there is a demand, the product will sell. The real question is how are you going to promote your product and where will you source your traffic from?
You can simply submit the product to high-traffic affiliate merchants like ClickBank and allow affiliates to find your product. I’ve had several successful product launches by simply submitting resell rights products to affiliate merchants like these and letting the affiliates do all the work, but if you want to start selling your product yourself you will have to send traffic to your website.
You need to find an angle at which people will be able to find your site. Will it be on the download page of somebody else’s product, will it be from a forum, or will it be from an article?
If I was selling the same product as you it will not affect the sales of your product whatsoever. If you’re getting customers from forums, I could be getting customers from pay-per-click, if you’re getting customers from article directories, I could be getting them from my own mailing list, if you’re getting customers from the search engines, I could be getting it from social networks. I think you get the idea.
It all comes down to where you source your traffic. They are so many tools out there to help you get traffic and so many people who are willing to promote your site for a small price, but I’ve personally had a lot of success just submitting new products to ClickBank.
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