There are many factors that you should consider when launching new products on Amazon, including choosing the right product and advertising techniques.
The Checklist “How to Launch New Products on Amazon”
- Choose a winning product
- Supply Chain Management
- Amazon Advertising
- Inventory Management
1. Choose a winning product
This stage is where most sellers end up buying useless products or get stuck when searching for their first product. Conducting Amazon FBA product research is most important for selecting the best products.
When choosing a winning product, you must consider price, shipping, sourceable, and seasonality.
The Amazon Best Sellers List is a great place for new product ideas. You will find inspiration but also high competition. You can then drill down to Amazon sub-categories.
2. Supply Chain Management
Supply chain management is best done in concert. This is what the most successful companies have discovered.
This is particularly important when a company is growing or wants to grow. All aspects of the supply chain must be accelerated to keep pace with the growth rate.
Bottom line: Without a supply chain management system in place, your growth potential is limited. Period.
If you do decide to set one up, however, you are limited to choosing from low-cost/dangerous options such as a sourcing agent.
This puts your brand at great risk by locking yourself into one middleman or settling for an option that has high setup fees and ongoing costs.
This can cause severe and immediate financial strain on your company.
3. Amazon Advertising
Advertisers are looking for alternative methods to increase momentum for product launches on Amazon’s Marketplace, now that Amazon has stopped allowing discounted or free products in exchange for reviews.
How can advertisers drive traffic towards Amazon?
Use Facebook, Instagram, and Email Groups – See the example below to see how you can use Facebook ads to reach target audiences to generate sales and product awareness.
Email blasts can be implemented if an organization has an existing customer base and sees the value in driving traffic towards Amazon rather than an eCommerce site to grow its Amazon channel.
Be aware of your Buy Box Percentage. Sellers must always be aware of their Buy Box percentage.
A seller who does not have the Buy Box is likely to lose any sale when a customer clicks the ad and is directed towards Amazon.
If you are the manufacturer, the same will eventually come back to you. However, if you’re the reseller and not in a Buy Box, then you’re probably paying for someone else’s order (conversion).
Leverage Influencers: Influencer marketing is a powerful strategy that uses social media and content to establish relationships with people you trust in your industry and to drive your brand’s message towards a targeted audience.
No matter how small or large an influencer’s following is, they can communicate valuable content via blogs and social media to your potential or current customers in a way traditional advertising might not be capable of.
4. Inventory Management
You need to be able to understand your inventory costs to optimize your business and manage inventory.
This will allow you to identify ways to automate, reduce costs and improve your processes.
Skubana says that it is common for a small amount of stock to account for the highest percentage of profits.
This is how inventory valuation works. It involves identifying the profitable items as well as those that are not profitable (deadstock or slow-moving).
To prioritize stock, value inventory, and invest more in the products that will make you money while reducing low-value products.
It can be difficult to cut stock, but the low-value stock could have a greater cost for your company than you realize.