The striker acknowledged he and his team-mates will need to up their game if they want to beat the Gunners on Tuesday following their 1-0 Hannover win
The Schwarzgelben have picked up three points from two games in the Champions League this season, following May's final defeat to Bayern Munich with a 2-1 loss to Napoli in September before bouncing back with a 3-0 win over Olympique de Marseille.
Arsenal, on the other hand, have a 100 per cent record in the European competition, including two wins over Fenerbahce in the play-off to reach the group stage and Aubameyang is under no illusions that the Gunners' squad is packed with quality.
"Ozil is in great form and is crucial to Arsenal's game but they're a quality side anyway," Aubameyang told Bundesliga.com.
"Olivier Giroud, for example, is also a very good player, I know him well from my time in France, he's a dangerous striker.
"Playing Arsenal won't be easy at all and we'll have to do better than we did on Saturday."
Jurgen Klopp's men peppered Hannover's goal with 18 shots on Saturday but won just 1-0, thanks to an early Marco Reus penalty, with the Gabon international suggesting that the international break took affected BVB's sharpness.
"We'll have further recovered by then and we'll be in better form," Aubameyang added. "Having a big game in the Champions League should give us extra motivation.
"I had the impression some of us were already tired going into the game and it got worse as the match proceeded.
"We didn't have our usual rhythm and didn't play the high tempo football we normally do. But a second goal would've killed the game."
Following the continental tussle with Arsenal, Dortmund face arch-rivals Schalke this coming weekend.