5 Considerations for Launching a New Product on Amazon in 2021
Launching a new product on Amazon can elevate your brand's presence beyond your expectations. Careful preparation will ensure the process goes smoothly to support your company's reputation, attract new customers, and increase growth potential. Keep these five key considerations in mind as you strategize in advance of an Amazon product launch.
Secure trademark protection
If you’re just getting started on Amazon and not adding to an existing catalog, consider this valuable reminder. To uphold the respectability of your brand and protect your product investment, you need trademark protection before selling on Amazon. Having a trademark in place allows you to enroll in the website's Brand Registry, which includes invaluable tools to help you stand out in the competitive Amazon landscape. As a Brand Owner, you can access support, resources, and tools, such as analytics, review notifications, search optimization, A/B testing, and product bundles.
Invest in creative content
An innovative advertising strategy, clear marketing copy, and high-quality, eye-catching visuals will help your product shine. Without these elements, you may struggle to attract shoppers as they instead decide to purchase from brands that have a professional image. Investing in these tactics across your product detail pages, A+ content, and Amazon Store improves the chances of success. Remember this simple formula: Creative presentation drives audience engagement and clicks, while exceptional copy converts prospects to clients.
Set review and rating benchmarks
It's the classic Catch-22. Your product needs great customer reviews to attract buyers, but you need existing buyers to earn high ratings. Free yourself from this conundrum with creative marketing (see “Get the flywheel moving” below for inspiration).
Establishing objectives can keep you motivated during the sometimes frustrating process of earning Amazon ratings and reviews for a new product. We recommend setting these starter goals:
- Overall customer rating of at least 3.5 starts
- At least 15 verified purchase reviews to drive visibility
- At least 25 reviews to increase advertising investment
Stay in stock
If your product isn't available on Amazon or takes a long time to ship, shoppers will switch to a competitor. Plan ahead to avoid this issue by increasing inventory as you meet your review and rating goals and set new benchmarks. Going out of stock not only decreases sales and damages your reputation but also causes your product to drop in Amazon's rankings.
Inventory can be a challenging aspect of a new product launch. Rise to the occasion with these best practices:
- Understand your supply chain lead time between placing an order and receiving your products.
- Establish an inventory minimum and never drop below that level. If possible, set a red flag that signals you to restock the product.
- Have a contingency plan in case your product sells out. For example, you could have an emergency stock or prepare a promotion to push other catalog items to keep customers interested while you restock your inventory.
- Know your inventory turnover rates and make sales projections accordingly. This metric, although an estimate, will help you understand how quickly a product is selling.
Get the flywheel moving
Do you know the flywheel metaphor? This massive metal disk requires incredible effort to move even an inch from a still position. But once it begins moving, it turns on its own momentum with less external effort. We’ve used this metaphor since the beginning as a premise for the strategies we create for our clients. Especially when launching a new product on Amazon. These are our favorite techniques to jumpstart the proverbial flywheel:
- Start with a lower, more attractive price to attract demand. As you earn positive reviews and ratings and begin to get more attention, gradually increase the price to your target.
- Consider cross-selling or upselling. Since your new product will need sales to rank and be discovered on its own, it's worth creating a promotion that connects it with a best-seller.
- Tap into external channels like social media. The team at Marketplace Strategy constantly works alongside our colleagues at Code3 to drive Amazon traffic to our clients’ listings. Whether it's for a new product or during a peak season, the results of an omnichannel strategy are undeniable.
If you're ready to plan for your Amazon product launch, the team at Marketplace Strategy can help you achieve success with your brand. Get in touch today for your free Amazon consultation with our seasoned sales professionals.
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