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Moritz Bauer
- January 10, 2022
- Last Updated on May 19, 2022
When you hear people talking about Amazon FBA, they usually speak about product research, and product research is important – that’s true.
However, you can spend weeks searching for great products, but if your product launch fails, you won’t be able to build a successful Amazon business.
Launching a new product on the Amazon marketplace is challenging. You need to invest heavily in Amazon advertising to ensure a successful product launch.
So, if you want to know how to launch a product on Amazon successfully, you’ve come to the right place.
This guide will show you everything you need to launch a new product on Amazon, increase your product ranking, and become a successful Amazon seller.
What You Need to Launch a Product on Amazon
If you want to sell successfully on Amazon, you need to invest money into your Amazon product launch. I don’t want to trick you – you will probably lose money during your product launch. At least, you won’t make any significant profits.
The goal of a product launch is to increase your sales velocity and product ranking to make profits in the future. But during the product launch, it’s hard not to lose money.
So, what do you need to launch a new product on Amazon?
- Unique product
- Less competitive niche
- Helium 10orJungle Scout
- Finally, you need money…
Your marketing campaigns will have a much higher ROI if you sell a unique product in a less competitive niche. Tools like Helium 10 and Jungle Scout can help you with the optimization of your Amazon PPC campaigns.
About the Amazon Search Algorithm
The Amazon A9 Algorithm decides whether your product listing ranks at the top or bottom of the search results. The algorithm takes metrics into account that influence your ranking, and the most important metrics are:
- Click-Through-Rate (ratio of clicks on a listing to listing views)
- Conversion-Rate:(ratio of visitors to buyers)
- Reviews (if your Amazon reviews are bad, your ranking will drop)
When it comes to Amazon SEO, you need to keep the following in mind:
To make many sales, you need to rank high. And to rank high, you have to sell a lot of products. Only a tiny proportion of visitors are likely to search for products on the second search results page.
But what’s the solution to this problem?
It’s not enough to make a little bit of promotion for your product. You need to promote the hell out of it and sell your products to as many people as possible.
If you want to know how to do that, keep reading this article.
Launch a Product on Amazon in 4 Steps
Ranking on the first page of Amazon search results is not easy. The first step is to create an outstanding offer and optimize your listing. Then, you need to promote your product to make sales.
The most effective advertising channel is Amazon Sponsored Products, but we’ll look at the best advertising strategies for a new product launch later in this post.
Here’s a chart showing the process of our product launch strategy:
When you generate sales, your sales velocity increases, and you get customer reviews, which are both crucial ranking factors. Accordingly, your ranking will increase, and you will start generating organic sales.
Create an Outstanding Offer
Let’s take a look at the Click-Through-Rate (CTR). The CTR depends on:
- Product image
- Product title
- Price of product
- Product reviews
So, what can you do to improve your CTR? You can…
- Optimize your main image: Use a dominant design. A high-quality image is mandatory. It would also help if your product looks good.
- Describe what people are searching for: Note important information but don’t overload your title with details.
- Set a low price: Set a lower price than your competitors, but not too low.
- Get Reviews: Sell your Amazon product to 5 friends and tell them to leave a review.
Here’s an example of a nice product image:
And here is an example of a bad product image:
Let’s take a look at the Conversion-Rate (CR). When visiting your product listing, customers should buy your product – it’s worth nothing if they leave.
So, what can you doto improve your CR?
- Includemultiple images.
- Writecrisp Bullet Points.
- Show visitors what they candowith the product, rather thanflooding them with technical details.
- Writea detailedproduct description.
- Try toanswer all questions.
- Use Amazon A+ Content
Here’s an excellent example of an optimized Amazon listing:
Besides the optimization of your product listing, there’s something else you should consider. Perhaps, you’ve heard of the kano-model? It’s a marketing model that describes five stages of customer satisfaction:
- Must-be-Attributes:Basic features that the customer only becomes aware of when they are not fulfilled. If you can’t provide these features, your customers won’t be satisfied. However, if provide them, they either will not feel much satisfaction.
- One-dimensional-Quality-Attributes:These are known by the customers. They eliminate dissatisfaction or create satisfaction.
- Attractive-Quality-Attributes:These provide satisfaction when achieved, but do not cause dissatisfaction when not fulfilled.
- Indifferent-Quality-Attributes:Indifferent-Quality-Attributes are irrelevant to the customer, both in presence and absence.
- Reverse-Quality-Attributes:Reverse-Quality-Attributes lead to dissatisfaction if present, but to customer satisfaction if absent.
Here’s also a graph:
I don’t want to mess around. You need to focus on building Must-be-Attributes,One-dimensional-Quality-Attributes, andAttractive-Quality-Attributes to increase your sales on Amazon.
Must-be-Attributes and One-dimensional-Quality-Attributesare less problematic to establish. It gets more complicated with Attractive-Quality-Attributes. How you build these vary from product to product.
Here are a few options:
- Coupon for the next sale
- Outstanding price-performance ratio
- Easy handling
- Special features
Your campaigns will have a much higher ROI if you have a product worth promoting.
Promote Your Amazon Product to Generate Sales
Okay, now that you have created an excellentAmazon listing, it’s time for promotion.
As mentioned before, it will be hard to get traffic through Amazon organic search if you haven’t made any sales yet. You have to find other ways to make your initial sales fast.
If you already have an audience, you can promote your new product to them. If not, you should use the following options.
Deal Pages
On deals pages, customers want to buy heavily discounted products.
The good thing about this is that customers usually only pay attention to the discount. This makes it easy for you to sell a product when you have about 70% or 90% discount.
The easiest way to utilize this strategy is to useJungle Scout.
That’s because Jungle Scout has its own deal page, and it allows you to promote your product directly on this deal page.
Jungle Scout’sdeal page is calledJumpSend.
Here’s what to do:
- Login to Jungle Scout.
- Go to Launch > Promotions tab.
- Click “CREATE NEW”.
- Select your Product.
- Then, you can go in and make any changes to your product listing and prepare your deal.
Jungle Scout shows you how many products you have to give away every day for one to two weeks to rank in the top 3.
Here, you can see that keyword scout estimates that we have to give away 19 units per day for one to two weeks rank in the top 3:
You can calculate this number for every keyword.
So that 19 people can redeem a voucher per day, I usually give away 21 per day.
You can also useHelium 10to determine this number. Furthermore, you also don’t have to use JumpSend as a deal site. Here are some alternatives to JumpSend:
Once you’ve launched your product on one of these sites, you’ll have to spend a week or two giving away the coupons. When people buy your product with one of your coupon codes, you’ll get higher rankings.
Facebooks Ads
Facebook is still the leading social media platform. According to the 2020 stats, Facebook reaches 60,6% of internet users.
Therefore, Facebook Advertising is a great way to get external traffic to your product listing.
You can drive traffic to your Amazon listing or your special offer on one of the deal pages mentioned above.
The advantage of Facebook Ads is that you can exactly target your audience.
If you use Facebook Ads within your product launch campaign, you should pay attention to the design of your ad. A boring ad only destroys money instead of generating sales.
Also, make sure you set some goals that you want to achieve before you start your campaign.
Here is a complete guide to Facebook Advertising that teaches you all the basics:
Amazon PPC
If you launch a product on Amazon, you need toset up an Amazon PPC campaign.
Amazon campaigns follow the pay-per-click principle (PPC). This means that you only have to pay when somebody clicks on your ads.
You can set up your Amazon PPC campaigns for specific keywords. The easiest way to do keyword research is to useHelium 10 Magnet.
That’s because you can check how many competitors are also placing ads for a specific keyword.
You will notice that your Amazon ranking improves after the first sales through your PPC campaign.
However, make sure that you have at least five positive reviews when you start your campaign. When you have zero reviews, nobody will buy your product either.
It would help if youread our complete guide to Amazon PPC.
Facebook Groups
While this may not seem like an ideal method, you should post your product to a few relevant Facebook groups.
Many people are interested in a particular topic and discuss it in a Facebook group.
If you find a Facebook group that applies to your product, contact the admin and ask him to post your product to the group.
Here’s a template you can use:
Hi [name],
My name is [name] from [company]. I have been joined this group since [date],initially to learn more about [topic].
I’m reaching out to you because I think I have a product that your audience will appreciate. Would you be willing to test and review the product?
Also, I can give away [units] for free and [units] for a 50% sale of my product.
Please let me know if you’re interested.
Thanks for your time,
[name]
It doesn’t always work, but sometimes you are lucky and can post your product to the group.
So, I know that this will be difficult, but it’s worth a try.
Compared to that, I would generally advise against the so-called advertising groups. These are usually spammy groups that are flooded with advertising and you’re only going to waste your time on them.
Influencers
Of course, you can also do Influencer Marketing.
Here’s what’s important:
- Find influencers who don’t have a super big following.
- Find influencers who directly engage with people who would be interested in your product.
- Find influencers with an engagement rate of at least 5% on Instagram. This means that when an influencer has 100.000 followers, they should at least have 5.000 likes for a post.
- Find influencers with an engagement rate of at least 15% on YouTube.
- Avoid fake influencers (influencers that buy followers).
And here’re some ways to contact them:
- Direct message
- Pitchbox
- NinjaOutreach
Pitchbox is an outreach and prospecting automation platform that allows users to build relationships with targeted marketing and PR opportunities, bloggers, and influencers.
You can also type into Google “Pitchbox Alternative”, to find some more alternatives you can also use.
If you want to do business with influencers, you provide them a discount code for their audience, and if they sell a product, you have to pay them a commission.
Influencer Marketing is generally good for building social proof and collecting more reviews.
Email Outreach
This is a pretty specific way to promote your product. But it can be effective if you include a coupon code in your email.
You have to be smart about it, though.
Let’s assume that you’re selling doggy treats.
Why not write to all the dog training schools in your area, give them a discount and sell them your dog treats?
Look for their email address, send them an email, introduce your product and your coupon code, and that’s it. You can also ask them if there is another way to do business with them.
Conclusion
Now that we have discussed the main strategies of an Amazon product launch, let’s summarize the most important learnings:
- The quality of your product is essential.
- You must create an offer customers can’t resist.
- Listing Optimization improves your CTR and CR.
- You need to do a lot of promotion for your product.
- You have to invest money in Amazon advertising.
Try to implement these things in your next product launch and you’ll see results.
Moritz Bauer
Moritz Bauer studied business management at the University of Applied Sciences in Constance. He built his first Online Store when he was 16 years old. Now he teaches companies how to establish their business online.
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FAQs
Is launching products on Amazon FBA easy? ›
Last updated on July 1st, 2022. If you want to be successful on the Amazon platform – as a seller or vendor – you need to put in the hours. No matter if you are newbie or seasoned seller, launching a new product on Amazon is difficult.
What is product launch in Amazon? ›A product launch is the period in which your listing first goes live on Amazon. At this time you have zero sales, zero reviews, and you won't show up anywhere near the first page of the search results.
What documents do I need for Amazon? ›- Business email address or Amazon customer account.
- Internationally chargeable credit card.
- Government ID (identity verification protects sellers and customers)
- Tax information.
- Phone number.
- A bank account where Amazon can send you proceeds from your sales.
A product launch refers to a business's planned and coordinated effort to debut a new product to the market and make that product generally available for purchase. A product launch serves many purposes for an organization— giving customers the chance to buy the new product is only one of them.
How long does it take to launch a product on Amazon FBA? ›Getting the Amazon listing ready and setting up PPC
Perhaps shorter (or longer) but on average it will take about three months to develop, manufacture and get landed at Amazon FBA.
...
Deal Pages
- Login to Jungle Scout.
- Go to Launch > Promotions tab.
- Click “CREATE NEW”.
- Select your Product.
- Then, you can go in and make any changes to your product listing and prepare your deal.
A product launch is designed to project your listing to Page 1 for a major keyword or phrase relevant to your product. Remember, the higher you rank, the closer you are to Page 1 (if you're not there already!). The goal is to get your listing to appear in organic search results and increase your organic sales.
How do you develop a new product launch strategy? ›- Get to know your customer. You can do this through metrics, analytics, and research. ...
- Get to know your product. ...
- Develop a new product launch plan. ...
- Create assets. ...
- Launch the product and measure your results.
Amazon product lines include (books, DVDs, music CDs, videotapes, and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and potty for those who wanted and many sexual items personal-care items, industrial and scientific supplies, kitchen items, jewelry and watches ...
How can I make money from Amazon at home? ›- Sell your own private label products on Amazon. ...
- Publish your own books on Kindle Direct Publishing. ...
- Sell wholesale goods on Amazon. ...
- Deliver goods for Amazon. ...
- Become a blogger. ...
- Flip store-bought products with retail arbitrage. ...
- Flip online retail store products using online arbitrage.
How can I start an Amazon business without money? ›
...
How to sell on Amazon for free (in four easy steps)
- Find a free product to sell. ...
- Create a free Amazon account. ...
- List your product on Amazon for free. ...
- Ship the product when it sells.
Amazon's Payout Cycle and How it Works
For most sellers, Amazon issues payouts every two weeks. Each payment includes proceeds from 14 days of orders (minus Amazon's fees) that were successfully delivered to your customers at least seven days ago.
It usually requires several elements coming together to create a successful product launch. You need the right product, the right market, the right positioning and the right timing for success.
What is product launch checklist? ›What is a product launch checklist? A product launch checklist is a list of action items that need to be completed in order to successfully release a new product to consumers. It helps you think through the steps, processes and assets that you and a team need to complete prior to any product launch.
What are the types of product launch? ›- Breaking In. The most common product launches occur when a company debuts a new product into an existing market. ...
- Breaking ground. ...
- Brand Extension and Expansion. ...
- Conquering New Territory.
A realistic expectation for a new seller to achieve profitability with their Amazon business is six months to one year. However, that doesn't necessarily mean you should start taking money out of the business at that point if you only have one product you're selling.
How long does it take to be able to sell on Amazon? ›We receive a number of questions from new sellers about Amazon accounts, so we wanted to take a moment to address some of them here. See below for answers to the most common questions. How Long Does it Take to Verify Your Amazon Seller Account? In most cases, your account will be approved within 24 hours.
How do you introduce a brand on Amazon? ›- Make sure you're “retail ready” before spending on advertising.
- Expect it to take 3-6 months to gain traction.
- Start with sponsored product ads set up as auto campaigns when you're ready for advertising.
- Register your brand through Amazon's brand registry! ...
- Keep your products stocked.
Selling plan fee: Professional sellers will pay $39.99 per month, and individual sellers will pay a $0.99 per transaction fee (no monthly fee).
What is the Amazon launchpad? ›Amazon Launchpad is designed to help products get discovered faster. Increased exposure for your brand in Amazon's store through Amazon Launchpad storefront placements and category-focused email campaigns. Waived fees for one Lightning Deal or one 7-day Deal per week.
Do you need a product for FBA? ›
Amazon FBA can help sellers scale their businesses and reach more customers. To sell on Amazon, you simply need a product to sell, a seller account, and a means of getting your product to the customer.
Do you have to sell your own products on Amazon FBA? ›FBM. In the world of e-commerce, there are ways to build a brand without holding any stock yourself. Amazon sellers have the option of being an FBA seller (Fulfillment by Amazon) or a FMB seller (Fulfillment by Merchant). Amazon FBA involves the individual seller sending products directly to Amazon's warehouse.
Do I have to own products to sell on Amazon? ›Resellers find popular products that already exist and offer them in Amazon's stores. Brand owners manufacture their own products—or source goods to sell under a private label—to offer shoppers unique selection. Lots of sellers do both. You can choose whichever method works for your goals.
What is the Amazon launchpad? ›Amazon Launchpad is designed to help products get discovered faster. Increased exposure for your brand in Amazon's store through Amazon Launchpad storefront placements and category-focused email campaigns. Waived fees for one Lightning Deal or one 7-day Deal per week.
What items should I buy for FBA? ›- Books – Yep, the Kind Made of Paper and Ink. ...
- The Population Keeps Growing, and That Includes Things for Babies. ...
- All That Glitters Just Maybe Gold. ...
- Exercise Clothing for All Those New Resolutioners. ...
- Electronic Items and All Their Accessories. ...
- Start Repricing for Free.
Minimal budget to start an Amazon FBA business
The minimal budget required to start a private label Amazon FBA business is approximately $3500. This budget will get you started with about 500 units of your unique product that costs about $4/unit to manufacture and source and gives a 100% return on investment.
Amazon FBA can be potentially more profitable than dropshipping. This is because you are purchasing items in bulk from a manufacturer and then shipping them to an Amazon warehouse or third-party warehouse. This allows you to better scale up your Amazon business.
How can I make money from Amazon at home? ›- Sell your own private label products on Amazon. ...
- Publish your own books on Kindle Direct Publishing. ...
- Sell wholesale goods on Amazon. ...
- Deliver goods for Amazon. ...
- Become a blogger. ...
- Flip store-bought products with retail arbitrage. ...
- Flip online retail store products using online arbitrage.
...
How to sell on Amazon for free (in four easy steps)
- Find a free product to sell. ...
- Create a free Amazon account. ...
- List your product on Amazon for free. ...
- Ship the product when it sells.
Almost half of Amazon sellers earn somewhere between $1,000 and $2,500 per month, with some sellers reporting earnings of up to $45k per year. Amazon allows you to put your products on display for everyone to see, which means more sales and ultimately more profit.
Why do sellers leave Amazon? ›
Reason #1 why people quit Amazon: not understanding the rules. Reason #2: focussing on the negative. Reason #3: not finding profitable products to sell. Reason #4: not knowing their numbers well enough.
Is it profitable to be an Amazon seller? ›Amazon reports show that 64% of new sellers made profits within the first year. While it's true that selling on Amazon is less costly than having a physical shop, the competition is just as tough. Some new sellers take more than six months to meet a good profit margin. Others may take up to two years.
How does a launchpad work? ›Each Launchpad has a grid of 8×8 square pads which light up when you connect them to appropriate software. The pads are then used to launch short loops or sound effects, and you can create a piece of music by chaining together these loops and effects.
When did Amazon launchpad start? ›Launchpad has technically been around since 2015 but it has undergone several name changes over the years. For example, Amazon Launchpad started out as the Amazon Exclusives Program which was later renamed to Amazon Brand Incubator before finally settling down on its current name.
Who is Amazon owned by? ›Who is Jeff Bezos? Jeff Bezos is an American entrepreneur who played a key role in the growth of e-commerce as the founder and chief executive officer of Amazon.com, an online retailer. In 2020 he had a net worth of more than $180 billion.