If you’ve launched a product on Amazon, you know how tedious and time-consuming it can be. Inventory planning, manufacturing head costs, and an Amazon launch strategy are all essential to successfully launching a new product. In this guide, we share 15 Amazon seller tips for launching a new product. Let’s get to it!
If you’ve just landed on my blog for the first time, my name is Ian Smith, and I run an Amazon Marketing Agency called Evolve Media Agency.
What We Do at Evolve Media
We help Amazon sellers optimize their Amazon listings with photos, videos, and copy to get their listings converting as high as possible through product photoshoots, video shoots, on and off Amazon marketing, Email Marketing, and Google Ad campaign management.
To book a free strategy and consulting call with us, visit emaamz.com.
If you’re a DIY Amazon seller and want to optimize your Amazon listing on your own, we’ve got a powerful Amazon listing checklist for you at zonchecklist.com. We broke down all of the different sections of an Amazon detail page and created different sales strategies for each area of a listing. You can check these items off as you and your team implement the different sales strategies.
Now, back to the blog. Here are 15 essential pieces of advice for any new or established Amazon seller launching a Product.
1. Understand Your Customer Lifetime Value
The first point to consider when launching a new product on Amazon is understanding your customers’ lifetime value and Average Order Value (AOV) for that particular product. The lifetime value of a customer refers to how much money you can extract from each customer over a year. Getting this number as high as possible is essential to profit from your product. An average yearly return between $50 and $75 per customer with margins of at least one-fifth of your overall sales price is ideal.
Amazon charges minimal fees for launching and selling products that can quickly accumulate. There’s also PPC ad expenditure, fulfillment fees, storage fees, the commission they charge, etc. A higher average customer order value and customer lifetime value can help offset many of these fees.
2. Customer Support is Important
Negative words travel faster than positive words, and everyone appreciates good customer service. Take a cue off Amazon’s playbook, and be sure to give out the best of services to your shoppers. Good customer service is crucial to increasing your customer lifetime value and average value. One effective way of rendering good service is leaving a thank you note in your product package. Another is giving discounts to your more regular shoppers or customers.
3. Invest in Partnerships
Whether with suppliers, brands, influencers, or your competition, try to create great relationships with them and partner with them on your projects. A good relationship can go a long way to boost your business on Amazon. They also offer you the opportunity to leverage the expertise of the people around you to better position yourself for progress. Do not force this, however. If there’s nothing to partner on, don’t fish anything out of thin air, as you can come off as repulsive.
4. Know the Power of Consumable Products
Consumable products are the best route to quickly scaling your business on Amazon. They have a longer customer lifetime value and a much higher average order rate. Unlike non-consumable goods, shoppers always return to purchase after their product replenishes. The challenge with launching consumable goods is they can sometimes be difficult to find consumers for. Most shoppers are loyal to brands and products that work for them and hardly move away from them. The cost of acquiring one customer is therefore expensive. We recommend good customer service and incentivizing your initial customers to stay with you for long.
5. Have a Wide Range of Product Photos
Good product photos can boost your conversion and clickthrough rates. Sellers can use them to show the scale, inform, and educate consumers about their products. Product photos also show the credibility of your products when combined with social proof. A wide variety of images for your EBC area and product details page is crucial to your success when launching a new product. They can also be used on product landing pages, websites, and social media platforms to drive external traffic to your listings. Read our guide on the top 10 product photo ideas every Amazon listing should include.
6. Create a lot of Third-Party Product Videos
Videos are another crucial component of a well-optimized product listing. If launching a new product, have at least three videos on your product listing page and EBC area. And while you can create numerous video types, third-party product videos are one of the best at convincing shoppers. To create third-party product videos, employ micro-influencers and friends to speak about your products. You can also engage professionals in your niche to discuss the benefits of your product’s key ingredients or even recommend them. Third-party videos help establish you as a brand authority and build trust and credibility with your shoppers. On platforms like TikTok, leveraging the audience of micro-influencers offers the prospects of getting your product to go viral.
7. Expand to Different Marketplaces
Amazon’s US marketplace is the most competitive. It is also crowded and difficult to rise through the grades as a new seller. If you have a product that is beginning to do well in the US, consider expanding to other marketplaces. Moving from the US marketplace to Canadian and European marketplaces is relatively simple. There are higher chances that your product performs better in these regions than in the US due to less competition. You may also be better off launching the product in a different marketplace besides the US before venturing there. Consider the prospects and do good research to assess your options better.
8. Value and Act on Customer Feedback
Don’t be all talk and no action. Practicing good customer support also means acting on customer feedback and critiques. This is important to developing a successful brand and product that meets the needs of your shoppers. Most Amazon sellers, before the launch of their product, employ focus groups to get their products tested. The focus group shares concerns and critiques sellers implement before the initial launch. Remember, your product is not for you but for your shoppers. Don’t discredit and push their feedback; encourage them to share their honest, non-biased opinions to help you improve the brand.
9. Learn to Pivot and Seek Out Opportunities
Like trying new marketplaces, it’s also important to test other product ideas when the initial ones don’t seem to be doing well. Always be on the lookout for greener pastures. Don’t be afraid to pivot or test new products and ideas. It’s always important to test out the success rate of a product before spending big money on it. Most sellers try to pick one product and make it work regardless of their challenges. But this has negative and positive consequences, often coming at a point that is too late. Find the balance and dabble till you find the perfect set of products that fit your brand and are profitable. You never know; you may discover a big blue ocean in your quest to explore other opportunities.
10. Don’t Get Comfortable
If you launch a product that is fast selling, don’t get too comfortable. Always look for new opportunities and ways to expand your current catalog. Bettering your product and brand at the least opportunities keeps you afloat even when everyone else is drowning.
11. Invest in Scaling Your Business
Great success comes with many responsibilities that must be managed effectively to avoid stagnation or regression. Know when you have exceeded your capacity and need a team to help you move freely. Huge brands and sellers on Amazon have dedicated teams managing various aspects. And while it can be stressful and risky to trust new people with your business, they can also be crucial to your progress. You never know; you might meet someone or a team that helps you level up your business to heights you never thought of. Scaling up your business through personals allows you to focus on the most needful aspects of keeping your business afloat.
12. Diversify Your Product Offerings
Earlier on, we mentioned the need to explore other product options when your launch is doing well. But even with a fast-selling product, you shouldn’t hesitate to diversify your product offerings to include products in your niche. This gives you the option to cross-sell to your customers and increase their customer lifetime value. It also shields you against future uncertainties should any of your products go out of favor with shoppers.
13. Build a Brand
Similar to the previous point, don’t focus only on a single product. Build a brand around a collection of products in different marketplaces. Good brands are cash flow machines that rarely stop giving. You’re a more stable business with a brand than having just one product doing good numbers. A reputable Amazon brand also helps you earn more when you want to sell your business.
14. Get Brand-Registered on Amazon
Amazon’s brand registry program unlocks many special features for your seller account. It allows you to create a storefront, participate in Amazon posts, create EBC content, and add video content to your listings. These features help sell your product a whole lot better. They also help you build more trust and credibility with shoppers. Overall, you increase the conversion rate of your listing page and sell more products.
15. Get Your Amazon Customer Data
If you’re an established Amazon seller, having complete control over your Amazon data is essential. Sellers who already have their customers’ data can cross-sell and market other products to them. It also makes launching a new product easier. With control over your customer data, you are in a position to sell your new products to them once they launch. You can offer discounts to them and pre-sell the product even before launch.
If you’re unsure how to retrieve your past Amazon customer data, we can help. Our Amazon Customer Data Service helps retrieve your customers’ names, mailing addresses, and phone numbers over the last four months. The data also includes the order ID, shipping address, and the price they paid. Unfortunately, it doesn’t include the ASIN number or the exact product ordered.
Disclaimer: Retrieving past customer data doesn’t align with Amazon’s Terms of Service. The eCommerce giant requires that all communications with shoppers happen on the platform. Use this data judiciously to prevent Amazon from suspecting you’re communicating with shoppers outside its platforms.
These are our top 15 tips for anyone launching a new product. We hope this was helpful for you. Don’t forget to book a FREE consulting call with us if you need to discuss these. You can also access our FREE Amazon Listing Checklist to optimize your listing and boost conversion rates. Thank you for reading!