Launching a new product on Amazon is daunting for many FBA sellers. In fact, it can result in thousands of dollars in losses if you don’t have a powerful launch strategy in place – especially in 2022 (instead of using old tactics that don’t adjust for today’s new changes to Amazon).
In this article, we’ll cover the key Amazon new product launch strategies you need to make a successful launch – including how to determine what products to launch & keywords to target… creating a listing that is optimized for those keywords… running an ad campaign to drive traffic to your listing… and tracking your sales + managing cash flow to make sure your launch is on track.
If you can follow these steps, you’ll be well on your way to launching your new product on Amazon successfully – without burning huge sums of capital and wasting time & resources that could have been spent growing your current products.
Use this outline to skip to any section of this page:
- Start with market research
- Discuss with potential suppliers
- Carefully select your new product(s) to launch on Amazon
- Determine initial offering (discounts, bundle, etc)
- Create & optimize listing
- Partner with an FBA prep center
- Strategically order inventory
- Determine marketing strategy & run PPC Campaigns
- Accumulate reviews
- Rank your product in Amazon’s search engine
- Manage cash flow, restock & scale product
1. Start your new product launch on Amazon w/ market research
The world of ecommerce is always changing, and Amazon is no exception. If you’re thinking about launching a new product on Amazon, it’s important to start with market research.
By understanding the current market trends, you’ll be in a better position to launch a successful product. There are a number of different ways to conduct market research, but one of the most effective is to use Amazon’s own tools. By taking advantage of Amazon’s vast data pool, you can gain insights into customer behavior and preferences.
There are millions of products available on Amazon and from potential suppliers – and choosing one that is likely to be successful can be a daunting task. However, there are a few methods that can help to narrow down the field and choose a product that is more likely to be successful.
- Research the Amazon Best Sellers list and identify products that are selling well.
- Look for products with high ratings and positive customer reviews.
- Consider products that are unique or niche items that might not be available at brick-and-mortar stores.
If you need help choosing a product, take a look at our Best Products to Sell on Amazon FBA to make your decision easier. Armed with this information, you’ll be able to make informed decisions about your product launch – and with a little bit of effort, you can ensure that your product is a success on Amazon.
2. Discuss with potential suppliers
Anyone who has ever launched a new product on Amazon knows that sourcing is one of the most critical elements of the process. After all, if you don’t have reliable suppliers, you won’t be able to keep your product in stock and your customers will quickly become frustrated. That’s why it’s so important to take the time to develop a solid sourcing strategy before you launch your product.
There are a few key things to keep in mind when you’re sourcing for Amazon.
- You need to find suppliers who can provide high-quality products at a competitive price.
- You need to make sure that your suppliers are reliable and can meet your inventory needs.
- You need to build relationships with your suppliers so that they will be more likely to work with you in the future.
By taking the time to develop a solid sourcing strategy, you can ensure that your product launch goes smoothly, results in a low cost-of-goods, and leaves customers with high-quality products.
3. Carefully select your new product(s) to launch on Amazon
When you’re looking to launch a new product on Amazon, you need to be strategic about the products you choose. Ideally, you want to choose products that are low cost, small and light for shipping, and that have high demand in order to grow your revenue. By carefully selecting products that meet these criteria, you’ll be in a good position to succeed on Amazon.
For anyone looking to launch a new product on Amazon, it’s important to choose products with good opportunities for building a marketing strategy. There are a few key factors to look for when assessing a product’s potential:
- Consider the overall niche and whether there is strong demand for the product.
- Look at the competition to see if there are already a lot of players in the space.
- Evaluate the potential margins on the product.
If you can find a product with good potential in all of these areas, you’ll be well on your way to success.
Of course, it’s not enough just to choose the right products – you also need to be sure to list them properly and market them effectively in order to generate sales (more on that below). But if you can nail the product selection process, you’ll be well on your way to a successful launch on Amazon.
4. Determine initial offering (discounts, bundle, etc)
When you are launching a new product on Amazon, it is essential to consider how you will discount and bundle your product. Many customers prefer discounts and bundles that save them money and drive higher demand.
There are a few different ways to offer discounts and bundles. You can offer a discount on the retail price of your product, or you can offer a bundle that includes your product and other related products. You can also offer a combination of both discounts and bundles.
One way to offer a discount is to bundle your product with a related item. For example, if you’re selling a new toy, you could bundle it with a book about that toy. This can help drive demand and make it more likely that customers will buy your product.
You can also offer discounts by lowering the price of your product for a limited time. This can create a sense of urgency and encourage customers to buy your product before the discount ends.
Both of these strategies can help you boost sales for your new product on Amazon. By offering discounts and bundling your product with related items, you can make it more appealing to customers and increase demand for your product.
The important thing is to 1) consider what will attract your target customer base and 2) develop a strategy that will maximize sales. With careful planning, you can launch a successful new product on Amazon.
5. Create & optimize listing
One of the most important things you can do to make your new product launch successful? Create a listing that’s optimized for maximum conversions. We cover this in our 8 Simple Ways to Optimize Your Amazon Product Listings article.
You need good images and persuasive copywriting to convince customers to buy your product – and one of the best ways to do this is by understanding your audience’s core emotions, desires and shopping behaviors. In most cases, Amazon seller will either:
- Conduct their own marketing strategies and research to implement these optimizations by themselves, or…
- Hire a specialist or an agency that specializes in listing optimization and consumer psychology.
Beyond that, you also need to use target keywords in your title and description. Amazon uses these keywords to rank your product in search results, so using the right ones can help you reach more potential buyers.
Another important factor to consider is your pricing. You want to set a price that’s reasonable and competitive, but also makes a profit for you. You also want to be careful not to undercut yourself or other sellers on Amazon.
6. Partner with an FBA prep center
In today’s Amazon FBA landscape, it’s never been more important to partner with the best FBA prep service. These services can inspect your products and prep your inventory to prevent penalty fees and removals. This can help ensure that your products are compliant with Amazon’s policies and that you are able to sell your products smoothly.
There are a number of different FBA prep services available, so it is important to do your research before selecting one. Make sure to discuss your specific prep, inspection and storage needs before you make a decision.
Keep in mind – partnering with an FBA prep service can be the difference between success and failure when selling on Amazon. These services can help you avoid wasting countless hours stuck in the weeds of prepping products – allowing you to focus on your new product launch strategy on Amazon.
7. Strategically order inventory
When you order inventory from your supplier, you need to ensure that you have the cash flow in place to pay for it. This may mean financing the order, or using net payment terms with your supplier. Either way, it’s important to understand how your cash flow will be impacted.
Of course, ordering the maximum amount of inventory (that you can handle as a business) is key to lowering the cost of each product and boosting your profit margins. By ordering a large quantity, you can minimize the cost per unit, which will help to improve your bottom line.
In order to make sure that you are ordering the correct amount, it’s important to do some market research and determine how many units you will need to sell in order to break even. If you are unsure about how much inventory to order, it is always best to overestimate so that you don’t run out of stock and lose potential sales.
If you’re financing the order, make sure you have a plan in place to pay back the loan. And if you’re using net payment terms, be sure to factor in the time it will take for your supplier to ship the product and for Amazon to process the order. This can impact your cash flow significantly, so it’s important to plan ahead.
8. Determine marketing strategy & run PPC Campaigns
To launch a new product on Amazon, you need to have a marketing strategy in place. This means figuring out who your target audience is, what messaging will resonate with them, and how you will reach them. It’s also important to set up some initial promotional activities, such as pricing promotions and giveaways, to help jumpstart sales.
If you’re not sure where to start, here are some tips for planning your marketing strategy for a new product on Amazon:
1. Define your target audience. Who is most likely to be interested in your product? Are they existing customers, or people who don’t currently buy from you? Once you know who your target audience is, you can start developing messaging that will resonate with them.
2. Figure out your unique selling proposition (USP). What makes your product different from the competition? Why should people buy it instead of something else? Once you know your USP, make sure to communicate it clearly on your listing and in your marketing materials.
3. Set up promotional activities. There are a few things you can do to get the word out about your new product and generate some initial interest. For example, you can run pricing promotions, offer free or discounted shipping, or give away products or gift cards.
4. Run PPC campaigns. These are the fastest types of ads you can run to instantly drive sales – instead of allowing inventory to sit in storage and accrue more fees. The faster you sell through inventory, the lower your cost-of-goods will be (and the faster you will grow the operation).
9. Accumulate reviews after your new product launch on Amazon
Generating good reviews for your new product on Amazon is 100% required for success. Not only do you need to get people to buy your product, but you also need them to leave positive reviews. This will help increase your product’s visibility on the site and convince other potential customers that your product is worth buying.
There are a few things you can do to generate good reviews for your product.
- First, make sure your product is high quality and meets customer expectations. If it doesn’t, people are likely to leave negative reviews.
- Second, make sure you’re actively engaging with your customers and responding to their questions and concerns.
- Finally, offer incentives for customers who leave positive reviews, such as discounts or free shipping.
By following these tips, you can ensure that your product drives significant demand, converts shoppers into customers, and ranks highly in Amazon’s search engine (and prevents account penalties or possible suspensions).
10. Rank your product in Amazon’s search engine
Speaking of how to rank products in Amazon – this is another major step to scaling out a new product after launch. If you can generate sales on autopilot (without needing to pay for marketing), you can begin to cruise into profitability and grow your Amazon store with ease.
In order to rank your products in Amazon’s search engine, you need to optimize your product listings so that your products appear as close to the top of the results as possible. There are a few things that you can do to help improve your ranking, including using the right keywords in your title and description, and making sure that your listing is complete and accurate.
Another thing that you can do to improve your ranking is to make sure that you are using high-quality images. Amazon has started using artificial intelligence to rank products based on their images, so it’s important to make sure that your images are clear and high-resolution. If you’re not sure how to take high-quality product images, there are a number of online tutorials that can help.
Finally, it’s important to keep in mind that Amazon continually changes its search engine algorithms, so it’s important to stay up-to-date on the latest changes and adapt your strategy accordingly. By following these tips, you can improve your ranking and increase your chances of driving traffic to your product listing.
11. Manage cash flow, restock & scale product
When it comes to selling on Amazon, it’s important to manage your cash flow and restock inventory strategically. Doing so will help you stay in business and grow your Amazon store over time. Here are a few tips to help you with that:
1. Make sure you manage your Amazon inventory correctly. This will help you keep track of what’s selling and what’s not, so you can order more of the products that are popular and discontinue those that aren’t.
2. Be mindful and carefully evaluate your inventory needs every 2-4 weeks. It’s important to be mindful of your cash flow, so make sure you space out your orders so you’re not spending all your money at once on inventory.
3. Be strategic about how you price your products. If they’re too expensive, shoppers will use Amazon’s powerful comparison shopping tools to go with competitors – but if they’re too cheap, you may not make as much profit per sale. Find the right balance to maximize profits while still attracting buyers.
By following these tips, you can stay afloat while launching new products on Amazon and continue growing your business over time.