Launching a new product on the Amazon marketplace involves a lot more than you might realize at first. It’s not just a matter of listing the product. You also have to find and incorporate high-quality images and written content, organize early promotions and advertising strategies, generate early reviews, and ultimately make the product visible. It sounds like a lot — but the right guide can help get you launching new products on Amazon in no time.
These early steps are critical to the product’s long-term success and your own growth as an Amazon seller. Those who put enough time and effort into their product launches can gain traction and market share faster. As Amazon CEO Jeff Bezos recently revealed, third-party sellers now generate more revenue on the marketplace than Amazon itself.
This also means that the market is getting more crowded and that gaining exposure is increasingly difficult for every new Amazon product launch. From choosing the right product to planning out the right launch strategy, however, there are a few things you should know — and a few things you should avoid — to get a leg up when launching a new product on Amazon.
First of All, There’s No Point in Launching a Product If It’s Not the Right One
Before you ever get started launching a product on Amazon, you must choose the right product. Start by researching several product markets as thoroughly as possible so that you can set realistic expectations. For example, in some markets, first-page products can sell 10,000 units per month, but it’s often unrealistic to expect you’ll reach those numbers quickly.
You can raise sales volume faster in niche markets with thinner competition. However, these markets typically see lower sales volume, so make sure you have a thorough understanding of your expected sales before entering the market. You can forecast revenue and measure barrier to entry using Amazon product research tools.
With that in mind, you’ll also have logistics and manufacturing costs, as well as Amazon fees, marketing, advertising, research, content production, and other costs to consider. You need to thoroughly understand where your point of profitability lies so you have a goal to aim for. Then, you can plan a much more successful Amazon product launch strategy.
Once You Know What You Want to Sell, Find Out How to Successfully Launch an Amazon Product
If implemented correctly, a new Amazon product launch will drive sales early, and early sales are critical in helping you gain early traction in the market, improve your keyword ranking, and net some early reviews to give your product an advantage.
In addition, early sales can teach Amazon’s algorithm that your product is a quality option for shoppers, which helps promote easier ranking and sales growth in the future. Shape your Amazon product launch strategy using these six steps as a guide:
1. Take time to read the terms of service.
Before launching any product, carefully read and understand Amazon’s terms of service. You’ll want to do everything you can to give your product the best chance at success, but you do not want to risk your account by unwittingly violating the rules.
2. Be prepared not to make a profit at first.
Properly driving success on Amazon while sticking to the terms of service takes capital, so be prepared not to make a profit with early sales. Amazon’s market isn’t a get-rich-quick platform; running your online business is just like running any other business. That means stimulate long-term sales requires spending on marketing and advertising, offering discounts, and more.
3. Reorder inventory before you run out of stock.
As you watch your sales and profits, you may be tempted to wait until your initial inventory runs out before ordering more. If you do so, you’ll risk running out of stock before you can replenish it. Being out of stock means shoppers will bypass your product listing, and it can negatively impact the listing’s keyword ranking.
4. Take advantage of early review generation.
Keeping an adequate amount of stock is important, but buyers might still scroll past a product that hasn’t even been reviewed yet. In one e-commerce study, up to 79% of buyers say they check reviews before making any purchase on Amazon. You can sign up for Amazon’s early reviewer program, set up and send out email sequences to customers, and craft a social media announcement strategy that adheres to Amazon’s terms.
5. Take advantage of Amazon’s massive customer base.
Unlike using your own branded website, Amazon’s biggest benefit is that it brings customers to you. The challenge is getting your product in front of them, which means focusing on Amazon SEO. Generate as many sales as possible up front, which will kick-start your listing’s keyword ranking. After all, thousands of people are already searching for your type of product. Now, it’s your job to get in front of them. Amazon sponsored ads are a great way to put your new product in front of eager shoppers. Learn how to run ads with our free Amazon advertising course.
6. Keep researching after the product launches.
The more you know, the smarter decisions you’ll make when it comes to ordering, listing, advertising, and scaling. Use data to gain insights into missed keywords, sales trends in your market, and your advertising opportunities. The insight you gain will help you create an even more effective strategy the next time you have a new Amazon product launch.
The path to a successful Amazon product launch strategy is different for every seller, product, and market. But the most important tips for any successful Amazon product launch are to understand what kind of market you’re getting into, to ensure that your expectations align with what’s possible in that market, and to drive initial sales. To learn more about what it takes to launch your product successfully on Amazon, sign up for your free trial with Viral Launch today.