Marketing Strategy New Product Launch – Launching a new product on Amazon is like being thrown into the cockpit of an airplane. There are lots of levers and flashing buttons but no clear indication of how to live in the space.
It is not enough to have a miracle drug. And spending lots of money on advertising doesn’t work. The truth is that what should be an elaborate and over-the-top approach turns a guaranteed success into an expensive and stressful start.
Marketing Strategy New Product Launch
Product development requires a step-by-step process that uses Amazon’s algorithms and calculates the challenges new products will face. With a bottom-up account management approach, brands of all sizes can systematically prepare their products for purchase before implementing a comprehensive approach to managing customer traffic and improving operations.
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If you read my instructions carefully, you can land the plane and reach the bank safely.
Always (and I mean always) start by saving your Amazon Prime badge. This is the sign that lets the customer know that your product can be safely delivered to their front door in two days or less.
For over a decade, Amazon has been investing in its promise to Amazon Prime customers. So it’s no surprise that when a product receives the Prime badge, customer conversions skyrocket, resulting in more than a 50% increase in sales. This is partly because Amazon’s search algorithm is able to put Prime-eligible products ahead of Prime shoppers, who tend to spend more time and money on the platform.
Many first-party sellers are eligible to sell on Amazon. However, third-party vendors must take steps to obtain the badge. One option is to sign up for FBA (Fulfillment by Amazon), a popular fulfillment system that allows sellers to fulfill orders from Amazon warehouses while retaining ownership of the products.
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Even FBA isn’t the only way brands can earn the all-important Prime badge. Sellers who use the Fulfilled By Merchant (FBM) program to ship products directly to consumers may apply for Fulfillment Prime if they can prove they have reliable and consistent Prime shipping standards . Seller Fulfilled Prime products appear on the platform as other Prime products but are shipped directly from the seller. Although the program does not accept new registrations, brands can be found on Amazon’s waiting list here.
Often at times when new products are on the rise, marketers are eager to attract customers with advertisements and promotions. But without high-quality content to add product value and improve conversions, their marketing budget is wasted on fewer sales. This is why preparing a well-crafted and optimized resume is an important step as you embark on your marketing journey.
However, it should be noted that premium content is not as cut-and-dry as prime bagging. What looks good may differ from product to product depending on the team and target customers. Live photos may be more important, for example, in fashion than in the office.
Even generalizing too much can lead to a simplistic approach. Instead, brands should favor a recognizable avatar that represents their psychological idea of their ideal customer. Every design decision after that should be made with the avatar in mind. And as a rule, the content and content of avatars are very sensitive, customers can change.
New Product Development: Process & Stages
Another thing that hasn’t been taken care of is mobile optimization. This means checking your content on mobile to make sure your content follows Amazon’s best practices for mobile devices. Images sometimes look pixelated or oddly cropped when viewed on mobile, so it’s important to take the time to view, especially considering that nearly 60% of customers shop on mobile.
Be sure to double-check your content titles on mobile, as they can be truncated. If you don’t include your keyword at the beginning of the title, Amazon buyers may see “Tropical, 8×11, Handmade, Fits Perfectly in Your Home…” as an image instead of the rug.
Lastly, brands with an existing catalog should set up a brand store (if they haven’t already). This is a special page for your brand that you host on Amazon that features product listings in categories, featured videos and photos, product comparison charts, and more. These are a great advantage of online storefront systems because they allow for quality information online without the worry of competing advertisers on the site. It is also a great place to showcase new products. By listing “new arrivals” next to “best sellers”, existing traffic and customer interest can be leveraged to launch new products.
Over 49% of customers listed reviews as a driving factor. In other words, half of customers want a review to confirm their purchase decision. This number alone should encourage marketers to establish a base of reviews before starting to drive traffic to their products. But beyond that, for customers (like me) who filter their search by reviews, items with no reviews are ignored. So it’s clear that getting some initial reviews can help you plan for marketing your product. Unfortunately, getting reviews can be easier said than done. After all, the average organic review rate is around 2%. In other words, you have to sell 50 items to get one review.
Create An Effective Product Launch Marketing Strategy
Amazon has a program to speed up the process called Amazon Vine. However, the app requires some vendor settings to work properly. And since reviews are required for conversions, these options are often only suitable after the reviews have been set and the product is ready to be advertised.
There are other options that have been shown to reliably improve your product reviews. One of them is Buyer-Seller Messages, a free app for third-party sellers where brands can send customized messages to customers after a purchase. Brands may contain important information for their customers such as user guides, repair instructions and additional information such as recipes or audio games. Of course, this extra space also serves as a way to solicit product feedback with a simple message like, “Tell us how we did it.” Even if you can’t encourage reviews or ask for positive reviews, messaging is still a great way to increase referrals, usually around 5 or 6%.
You’re finally there. You patiently took past experience to ensure high conversion rates. Your ad is now ready, which means everyone’s favorite words have been entered. Car, car, car.
Marketing of new products needs to hit both ends. Search marketing should include the use of keywords, with an emphasis on driving traffic and increasing brand awareness, as well as keywords that increase conversions and increase search volume.
Marketing Strategy New Product Introduction Solution To Overcome Product Launch Download Pdf
But the rankings and algorithms take external traffic into account as well. That’s why even brands with the financial bandwidth must use Amazon DSP (Demand-Side Platform) to deliver targeted online advertising to customers powered by Amazon Shopper data.
In addition to DSP, external traffic can be driven using social networks, blogs and any other brand-driven presence. The key to generating great demand is to take advantage of every opportunity possible to generate new sales.
Above all, brands want assurance that their innovations will be successful. And while getting verified on Amazon is tough, there are ways to monitor your work and improve performance.
Fixing and solving problems based on metrics is possible only when the previous four steps are reversed. Otherwise, the number of variables leads to more functional descriptions. The conversion rate is around 5-6% across Amazon, but varies by price and category. New content may be a little lower, but if you’re hitting anywhere under 1% conversion, you need to start digging.
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Organic keyword position is a good indicator of the overall performance of your new product. As the above steps work in sequence, you should see your portions slowly increase over the first few weeks. Are you stuck on page 300? Or have you gone to page 100?
Another option is to run an A/B test. This means testing different images of your products, allocating ad spend differently, and testing how your products perform after the changes. But remember to only make one change at a time, or you won’t be sure what a difference it makes.
Finally, brands should look to their competitors and evaluate how their strategies differ. The top 10 brands in your category may all be creating different customer avatars than yours. Or maybe they are offering a promotion and reducing the price of your products. Learning from those who have been successful in the past can give you an advantage in finding ways to improve your strategies.
Launching a new product on Amazon can be one of the toughest challenges a brand faces. Ultimately, the market favors products that are sold regularly.