Why Launch on Amazon?
Amazon offers new sellers significant benefits, including access to a vast customer base exceeding 300 million people.
It’s particularly beneficial for those without a big customer base or brand recognition. Amazon’s fulfillment service simplifies logistics, freeing up time and resources for product development and marketing.
Advantages include:
- Large Audience: Reach millions of active shoppers.
- Sophisticated Tools: Use Sponsored Products and analytics for targeting and insights.
- Reliable Fulfillment: Depend on Amazon’s logistics for efficient shipping.
- Seller Protection: Take advantage of Amazon’s policies to safeguard your business.
On the other hand, challenges include the need for visibility and high rankings, which sales can drive, but getting those initial sales can be tough. The marketplace is crowded, and competition is fierce. Plus, Amazon’s landscape is always changing, requiring sellers to be adaptable and continually optimize their strategies.
Overcoming these obstacles is essential for a successful launch.
Based on what I’ve seen, launching your product aggressively on Amazon…
Based on what I’ve seen, launching your product aggressively on Amazon is a game-changer. It gets your product out there fast, ramps up your sales early, and helps you stand out in the crowd. It’s not just about making a quick splash; it’s about building a solid base for your product to keep growing and staying visible amid all the competition.
Why a Strong Launch Matters on Amazon
What's Included in an Aggressive Amazon Product Launch?
A combination of Rapid Reviews+ Amazon PPC Campaigns+ Special Promotions+External Traffic Generation+Competitive Pricing Strategy
This initial phase is commonly referred to by sellers as the ‘honeymoon period.’
But what exactly is this 'honeymoon period'?
The primary objective of an Amazon product launch is to enhance your product’s ranking for specific keywords, leading to increased organic sales. During the honeymoon period, typically believed to last for the first 1-3 months of a product’s existence on the platform, Amazon’s A9 algorithm prioritizes showcasing NEW and POPULAR products on Page 1 of search results.
This happens even if these products wouldn’t naturally achieve the required sales velocity and conversion rate for such placement. In simpler terms, during the initial 1-3 months, it’s comparatively easier to improve your product’s ranking. Amazon aims to give NEW products that are performing well a chance to be discovered alongside the existing bestsellers.
Before we dive into the 10-step checklist for launching a product on Amazon, let’s first understand the costs associated with a product launch.
How much does it really cost to launch a product successfully on Amazon?
As you probably understand, the launch phase involves expenses, some of which are one-time costs, and it’s important to view them as an investment that will bring returns to your product. This is not the time to skimp. Every dollar you invest in this phase will strengthen the foundations of your business and will pay off multiple times in the coming months.
In the table below, we will review the costs associated with launching a product on Amazon over the course of 60 days.
Estimated Costs for Launching a Product on Amazon in the First 60 Days
-
#
- Expense
- Estimated Costs
- Description/ Breakdown
-
1
- Inventory Costs
- $5000
- Product costs can vary widely, but as a benchmark, let’s assume an average of $5,000 for initial product inventory.
-
2
- Amazon Seller Account Fees
- $5000
- Amazon’s referral fee is typically around 15% of the item’s sale price, while fulfillment fees depend on the size and weight of the product. A rough estimate might be $500.
-
3
- Amazon PPC Advertising:
- $600-$900
- Daily budget of $10-$15 for 60 days.
-
4
- Listing Optimization
- $250-$350
- We recommend hiring professionals.
-
5
- Marketing Expenses
- $300-$500
- The budget for external marketing efforts like social media advertising
-
6
- Sample and Test Orders
- $100-$300
- Depending on the product
-
7
- Giveaways and Promotions
- $200-$500
- Budgeting $200 to $500 for promotions and giveaways is a common range.
-
8
- Shipping Costs
- $500
- Shipping costs can vary widely based on product weight and destination.
-
9
- Software/ subscriptions
- $100-$200
- For inventory management, accounting, keyword research, etc.
-
10
- Trademark Registration (if applicable)
- $500-$1000
- Trademark registration costs can vary significantly.
-
11
- Returns and Refunds
- $100-$200
- Returns and refund costs can vary.
-
12
- Miscellaneous Costs
- $200-$500
- It’s also wise to have some budget flexibility for unexpected costs…
- #
- 1
- Expense
- Inventory Costs
- Estimated Costs
- $5000
- Description/ Breakdown
- Product costs can vary widely, but as a benchmark, let’s assume an average of $5,000 for initial product inventory.
- #
- 2
- Expense
- Amazon Seller Account Fees
- Estimated Costs
- $5000
- Description/ Breakdown
- Amazon’s referral fee is typically around 15% of the item’s sale price, while fulfillment fees depend on the size and weight of the product. A rough estimate might be $500.
- #
- 3
- Expense
- Amazon PPC Advertising:
- Estimated Costs
- $600-$900
- Description/ Breakdown
- Daily budget of $10-$15 for 60 days.
- #
- 4
- Expense
- Listing Optimization
- Estimated Costs
- $250-$350
- Description/ Breakdown
- We recommend hiring professionals.
- #
- 5
- Expense
- Marketing Expenses
- Estimated Costs
- $300-$500
- Description/ Breakdown
- The budget for external marketing efforts like social media advertising
- #
- 6
- Expense
- Sample and Test Orders
- Estimated Costs
- $100-$300
- Description/ Breakdown
- Depending on the product
- #
- 7
- Expense
- Giveaways and Promotions
- Estimated Costs
- $200-$500
- Description/ Breakdown
- Budgeting $200 to $500 for promotions and giveaways is a common range.
- #
- 8
- Expense
- Shipping Costs
- Estimated Costs
- $500
- Description/ Breakdown
- Shipping costs can vary widely based on product weight and destination.
- #
- 9
- Expense
- Software/ subscriptions
- Estimated Costs
- $100-$200
- Description/ Breakdown
- For inventory management, accounting, keyword research, etc.
- #
- 10
- Expense
- Trademark Registration (if applicable)
- Estimated Costs
- $500-$1000
- Description/ Breakdown
- Trademark registration costs can vary significantly.
- #
- 11
- Expense
- Returns and Refunds
- Estimated Costs
- $100-$200
- Description/ Breakdown
- Returns and refund costs can vary.
- #
- 12
- Expense
- Miscellaneous Costs
- Estimated Costs
- $200-$500
- Description/ Breakdown
- It’s also wise to have some budget flexibility for unexpected costs…
Important to note that these are general estimates and the actual costs can vary greatly based on your specific situation, the category of your product, how aggressively you market and advertise, and how you manage your inventory.
In this guide, we’ll show you how to launch your product on Amazon.
It's divided into three parts:
- Pre-launch: Getting everything ready.
- Launch strategy: The big event where your product goes live.
- Post-launch: Keeping the sales going.
Excited? Let’s get started!
From my experience with Amazon FBA…
From my experience with Amazon FBA, I’ve learned it’s crucial to have a budget for your product launch. Think of it as planning for a trip—you need to know how much you can spend to reach your goal. A clear budget keeps your launch on track and ensures you don’t run out of resources when you need them most. It’s more than spending money; it’s about making smart investments for your product’s growth. Trust me, it pays off!
Checklist for Amazon Product Launch: 10 Steps
Pre-launch
Kick things off by cracking the Amazon A9 algorithm code Here’s the scoop:
A big headache for sellers after launching their product is not racking up enough sales. And that’s where getting to know the Amazon A9 algorithm really makes a difference.
First things first, Amazon isn’t Google.
Google’s all about matching search queries with the most relevant content, but Amazon?
It’s all about who’s selling the most. Sure, things like reviews and how well your listing is set up matter too, but at the end of the day, it’s the sales figures that really turn the tide.
So, if your product’s not showing up at the top of search results, chances are it’s not flying off the virtual shelves. And that’s a bummer because it can start this whole cycle of not enough visibility leading to not enough sales, and before you know it, you’re feeling like throwing in the towel.
But here’s the deal: if you really want your product to be the star of the show and get those sales numbers climbing on Amazon, you’ve got to get a handle on how their search algorithm ticks.
Launching a Successful Product Begins with Smart Research
It’s essential not only to choose what to sell but to understand who will be buying it.
Here’s what to focus on:
- Target Audience: Really get to know your potential customers.
- Market Needs: Discover what your audience is searching for and how frequently they purchase items similar to yours.
- Customer Pain Points: Identify and address any common issues buyers face with similar products.
- Passion for the Product: Your enthusiasm can set you apart.
- Understanding Competitors: In crowded markets, find your unique edge. Start in a less competitive niche and grow from there for an easier path to sales
Focus on Creating a Strong Brand
- In today’s Amazon marketplace, having a solid brand isn’t just nice to have – it’s essential, especially if you’re serious about growing your e-commerce business.
- Think of branding as a crucial piece of your product launch plan.
- As you develop your product, take a moment to really think about your brand. Ask yourself what your brand stands for, how you want customers to see your brand compared to others, and what unique qualities your product has.
- Consider everything from your product’s packaging and design to the colors that represent your brand and how customers perceive your product or brand.
Understanding these elements will help you pinpoint your business’s strengths, identify who your target audience is, and shape the story your brand tells.
Set Clear Sales Targets
It’s crucial now to decide on your financial targets for your product.
Why? Because setting precise goals helps you understand and manage the costs and fees associated with selling, and anticipate your product’s sales performance. To lay the foundation, begin with basic research.
Review Amazon to assess the potential sales for your product, which can guide you in setting realistic and achievable financial objectives.
Launch Strategy
Master the Tools That Boost Your Amazon Business Growth
Launching a successful product on Amazon isn’t a one-step deal—it’s a multi-layered process.
To streamline each phase of your product launch, it’s crucial to pinpoint the tools that automate and simplify your task
Focus on mastering marketing, product, and task management software to ensure every aspect of your e-commerce product launch runs smoothly.
Need Help Launching Your Product? Click Here for Expert FBA Support!
Consider using platforms and software such as:
Dragon Dealz
Jungle Scout
Panda Boom
Helium 10
Additionally, make sure you’re up to speed with how Amazon advertising and brand analytics function.
Get to know the key metrics and the importance of monitoring them closely.
Fine-Tuning Your Product Listing
Let’s break down listing optimization into three clear steps:
- Researching keywords
- Optimizing them
- Tracking their performance.
Researching Keywords:
Start by brainstorming every phrase and keyword that could relate to your product. Organize them and highlight the most important ones. Tools like Jungle Scout and Helium 10 can help. Also, peek at your competitors’ listings to see which keywords they’re ranking for. Select keywords that match your product’s features and capabilities.
Optimizing with Keywords:
With your chosen keywords, weave them into your product’s title, bullet points, and description. Remember, your aim is to appeal to Amazon’s search algorithm and to potential buyers. The better you understand what your customers want, the more effectively you can present your product to meet those needs.
Important Make sure all of this is done with Amazon’s SEO guidelines in mind.
Tracking Keywords:
After optimizing your listing with the right keywords, you need to track their impact. Watch your metrics like click-through rates, clicks, and conversions. Drop keywords that aren’t converting and double down on the ones that are.
Want to boost rankings for certain keywords?
Target them in your ad campaigns.
Boost Your Listing with Outside Traffic
You’ll want to start drumming up interest even before your product hits the Amazon scene.
Get your brand on your audience’s radar with a few smart moves:
- Write a blog post that funnels readers to your Amazon listing.
- Set up a website to build some buzz early on.
- Grow your social media presence on platforms like Facebook or Instagram to engage with a large audience.
- Cultivate an email list that’s ready and waiting for your product news.
- Reach out to influencers or early adopters to get some early reviews and build credibility.
- Sure, Amazon’s got a massive crowd of shoppers, but it’s also got a ton of competition. Getting traffic from other places to your Amazon listing can give you that edge to stand out and get the sales ball rolling.
60-Day Amazon Product Launch Roadmap
Days 1-10
Product and Market Research
Product and Market Research (Days 1-10): Identify a viable product by exploring market trends and demand. Evaluate potential suppliers and secure favorable terms.
Days 11-20
Branding and Legal
Develop your brand’s visual identity, secure the necessary legal structure, and ensure compliance with Amazon’s regulations.
Days 21-30
Pre-launch Marketing
(Days 21-30): Craft engaging content and establish digital marketing channels to generate buzz.
Days 31-40
Listing and Optimization
Create an Amazon listing with compelling images and descriptions, and optimize for SEO to improve visibility.
Days 41-50
Launch and Promotions
Execute a strategic launch, employing promotional tactics to drive initial sales and collect customer reviews.
Days 51-60
Post-launch Management
Analyze sales data, maintain customer service excellence, and adjust strategies to sustain and scale your product’s success on Amazon.
Post Launch Strategy
Get Reviews – Build Trust with Social Proof
- Kicking off sales is one thing, but getting buyers to leave reviews is a whole other game.
- Reviews on Amazon are super important (and some will say- the most important) for a couple of big reasons:
- Potential buyers really trust reviews, almost like a recommendation from a friend.
More positive reviews? More sales.
Reviews are key for product rankings, and you kinda need them to get your pay-per-click (PPC) ads off the ground.
So, right from the start, you’ve gotta focus on racking up those reviews.
Here are a couple of legit ways to get those all-important Amazon reviews:
- Amazon Vine Program: This one’s for the pros. Amazon picks top-notch reviewers (the ‘Vine Voices’) based on their reputation to review your products. They’re known for being honest (sometimes too honest…) and thorough, which helps other customers make decisions. Amazon gives them free products from sellers who join the program. It’s all about getting credible reviews out there.
- Dragon Dealz Review Zone helps Amazon sellers get verified reviews by linking them with bloggers/buyers for product evaluation. It’s ethical, boosts visibility, improves rankings, and increases sales with a high industry return rate for reviews.
- Product inserts are a delicate balance: Use them to ask for reviews neutrally and provide useful tips. Stay within Amazon’s guidelines by not discouraging negative feedback and directing customer service through Amazon’s system.
- Collaborate with micro-influencers in your product niche on platforms like TikTok and Instagram. Their genuine endorsements can lead their audience to purchase and review your Amazon products, enhancing your reputation and review count.
- Enlist friends and family to buy and review your products on Amazon, but approach this method with caution. Reviews should be honest and purchases at full price to avoid detection by Amazon’s algorithms.
- The “Request a Review” button in Amazon Seller Central is a straightforward way to ask buyers for feedback, shown to increase review rates when used between four to 30 days post-purchase.
Looking for a Boost in Amazon Reviews? Click Here for Quick Help!
In my Amazon FBA experience, I’ve seen firsthand how crucial product reviews are…
In my Amazon FBA experience, I’ve seen firsthand how crucial product reviews are during the launch phase. They’re like your product’s first impression – super powerful! Reviews not only build trust with potential customers but also give your product a boost in visibility. Think of them as your product’s cheerleaders, attracting more eyes and trust. Getting those early reviews can really set the pace for your product’s success. Trust me, they’re worth the effort!
Keep Your Inventory Stocked
Being out of stock can significantly damage your product ranking on Amazon for several reasons.
Firstly
Amazon’s algorithm rewards products that consistently generate sales and remain in stock. When your product is unavailable, it cannot generate sales, causing a drop in its ranking.
Secondly
customer experience plays a crucial role in rankings. If customers visit your product listing and find it out of stock, they may become frustrated or turn to competitors, leading to a poor customer experience. Amazon prioritizes products that offer a seamless shopping experience, and this includes product availability.
Thirdly
out-of-stock periods can lead to a loss of visibility. When your product isn’t active, it may slip down in search results, making it harder for potential customers to find it.
To maintain a strong product ranking on Amazon, it’s essential to manage your inventory carefully, ensure a continuous supply, and avoid extended periods of unavailability.
Run Effective Amazon PPC Campaigns
Consider these strategies:
- Focus on keywords that perform well to improve your product’s search ranking.
- Think about using your competitors’ products or brands as targets to expand your reach.
- Apply smart bidding strategies to get more sales while managing costs.
- Set a clear budget to control spending and structure your campaigns to avoid competing with your own ads.
Bonus tip:
Consider creating an exclusive launch group on social media where your most engaged followers can sign up to receive your product at a special introductory rate.
Not only does this reward your loyal customers, but their early purchases and potential reviews can significantly bolster your product’s visibility and credibility on Amazon from day one. This strategy creates buzz and can improve organic rankings quickly, leveraging word-of-mouth and social proof in the critical initial phase of your launch.
Final thoughts
Wrapping up, here’s a streamlined summary for launching your product on Amazon successfully:
- Generate excitement before your product hits the market.
- Carefully control your shipping, storage, and maintain healthy profit margins.
- Do in-depth research on your product niche and the keywords you’ll use.
- Fully optimize your Amazon listing with a catchy title, bullet points, clear images, and a detailed description.
- Monitor and adjust your keywords based on their performance.
- Use Amazon’s advertising options to improve your search ranking.
- Always have enough stock ready to meet customer demand.
- Use social media, advertising, and influencer partnerships to bring traffic to your Amazon listing.
- Motivate your customers to make purchases and share their reviews.
For extra support, our team is available at support@dragon-dealz.com
