<img src="http://www.central-core-7.com/54940.png" style="display:none;">

Looking to Launch: Six Tips for a Successful Launch on Amazon

09 Jun 2021 Rina Yashayeva

in Amazon, Trending

It has never been easier to launch a new brand on Amazon, but it has never been harder to succeed. In my role as VP, Marketplace Strategy, I advise brands experienced on Amazon—and those new to the platform. Before launching your brand on Amazon, review these six essential tips for a fruitful launch and ongoing, long-term success.

  1. BUILD a Brand Off Amazon First
    • The first thing to note before launching on Amazon is to take a step back and build your brand off-platform first. Amazon is a place where demand is filled, not necessarily where demand is created. We recommend building sales and brand awareness through other distribution channels first, including retailer, brick and mortar, and DTC. Additionally, press and PR play an important factor in generating buzz, especially for new brands. We cannot ignore the subset of Amazon-native brands that did the opposite and built their business on Amazon; however, their success was driven by first-mover advantage: they launched 5 to 10 years ago. Today, brands have more competition than ever before. Prior to launch, ask yourself where Amazon fits into your holistic ecommerce strategy and ensure that all channels always work synergistically. Whatever happens OFF Amazon is critically important to your business ON Amazon.


  1. KNOW Your Fees
    • Whether launching as a vendor or a seller, Amazon has specific requirements for the fees a brand must be responsible for. As a quick overview, sellers pay a $40 professional fee and a 15% seller commission, in addition to storage fees starting from $2 for each unit in Amazon’s warehouse. Vendors, through a wholesale relationship, pay 30% to 40% in margin in addition to 10% to 20% in fees to cover returns, damages, etc.


  1. PROTECT Your Brand Distribution
    • Even if a brand is not offering its products on Amazon directly, the likelihood that the products are already on Amazon through other sellers is quite high. Winning the buy box 90% of the time is necessary for long-term success on Amazon. Therefore, a brand must have a clear plan for protection before launching on Amazon. Diversion ultimately stems from the brand’s supply chain distribution, so controlling distribution is the first step in protecting brand image and integrity. If unauthorized third-party sellers have already managed to get their hands on the product, there are several solutions a brand can take to protect listings.


  1. CREATE Compelling Content
    • Content is king on Amazon for two reasons: to feed Amazon’s algorithm—known as the flywheel—and to educate the consumer. Content on Amazon consists of copy on the detail pages (titles, bullet points, product descriptions, and back-end keywords), as well as visual content in the form of A+ Content and Brand Stores. Brands can often repurpose the images and videos they have already created for their website or social channels, as long as the content follows Amazon’s guidelines and is sized appropriately. Infographics—repurposing text in the form of an image to highlight the key features and benefits of a product—are a winning strategy within Amazon content.


  1. INVEST in Advertising
    • The most successful brands on Amazon treat the marketplace as a separate channel with dedicated budgets, rather than an afterthought. Contrary to popular opinion, a product on Amazon will not sell itself, therefore advertising is critical to drive traffic and impressions to detail pages, ultimately resulting in revenue and customer acquisition. The main tactics via Amazon Advertising include Sponsored Ads, pay-per-click search advertising with multiple campaign placements, and Amazon DSP, programmatic display advertising that leverages Amazon’s first-party data to target qualified consumers both on and off Amazon. Most brands dedicate 8% to 15% of their topline revenue (or revenue goal) to advertising, with our recommendation of at least 10% to ensure capturing full demand.


  1. HIRE a Dedicated Resource
    • Whether Vendor Central, Seller Central or the Advertising Console, Amazon’s systems are not always intuitive and user-friendly. There are countless acronyms, guidelines, and nuances to keep track of, made even more difficult by the ever-changing nature of the platform: it evolves on an almost daily basis.

      Brands that face challenges often lack either the bandwidth or the expertise to properly manage their business. A dedicated resource that understands the tools, systems, and strategies is the number one winning tactic for a new brand’s success on Amazon.

If you are a new brand looking to launch on Amazon, connect with us to establish a smart strategy that will allow your brand to shine amidst incredible competition. A leader in the marketplace era, Stella Rising approaches Amazon holistically, and delivers for clients with a team of Amazon experts.

Amazon Trending