Launching Products on Amazon: A Seller's Guide

Product launches are a popular growth strategy for sellers on Amazon but are also notoriously difficult to execute successfully. An effective product launch involves a combination of keyword research and implementation, paid advertising, and brand awareness initiatives. In turn, this can have a noticeable impact on sales growth and brand awareness.

Preparing for an Amazon launch

When launching new products, sellers should be aware that there are several metrics in Amazon’s A9 algorithm that determine the overall ranking of a product.

One of the key factors is sales velocity, which is measured using the click-through rate (CTR) and conversion rate (CVR).  When Amazon assess the sales velocity of an item, it will compare it to competitors using the same search terms, prioritising the item with the highest velocity. Product availability is also considered, so stock levels should be monitored regularly to ensure items are replenished with sufficient time.

Text match relevancy will also assess how well the content within the listing matches the keywords searched by consumers. Better relevancy to the selected keywords will result in better organic ranking. Price is another aspect that A9 will factor when assessing products. Maintaining the lowest possible price is an effective strategy, but sellers should be aware of not lowering prices below a reasonable margin. Instead, it is recommended to focus on justifying the price of the listing using content to highlight the item’s USPs.

Setting a fulfilment strategy

An important step when launching a new product is to consider the shipping and fulfilment processes. Most sellers will opt for using their existing fulfilment processes for easier management, but in certain instances, it’s important to consider whether the time-to-market will be critical to the success of the product. In such instances, it may be best to use an alternative process to reduce shipping times.

Preparing listings  

The next stages of a product launch involve preparing and optimising listings to ensure that the content features the correct keywords, images, branding, and messaging.

Keyword research

Most customers on the marketplace discover products using search terms, therefore sellers should carefully select each keyword to maximise the chances of achieving the highest rank possible. Considering the structure of the title, bullet points, and description of each new listing can influence its positioning compared to competitors in similar search terms.

It is also worthwhile to consider short-tail and long-tail options when embedding search terms into new products. Although long-tail keywords have a lower search volume, they can be highly advantageous for targeting the top position for specific terms, as there is decreased competition compared to shorter search terms. This can be particularly effective for products targeting a competitive niche.

Activ8 recommends using software tools like Helium10 or Sellics to perform keyword research of competitor listings and select a range of both long-tail and short-tail terms that are applicable. Each listing should be structured with the highest-priority keywords at the start of the title, followed by the rest of the title, bullet points, description, and backend search terms.

Creative content

Sellers must also account for the fact that people are shopping online and unable to physically interact with the item, therefore it is imperative to recreate an in-store product experience as closely as possible for each customer.

Creating high-quality product photography and infographics are ideal for visually engaging with potential customers. The average shopper will only read around 20% of the words on a page but will view every product image, so visual presentation is key for attracting customers. Product images should be focused on showcasing the item in its intended setting and use and highlight unique selling points to justify the item’s value.

Once sellers have established the main components of the listing, it is worthwhile to consider creating Amazon A+ Content and/or storefronts. A+ Content allows merchants to add more imagery and text, selecting from a wide range of formatting options to showcase content more effectively. Each content module provides users with more valuable information about the brand and products, which Amazon states can increase sales by up to 10%.

Storefronts are another powerful tool for driving customer loyalty, as they allow sellers to create a central brand hub that contains all brand products on the marketplace. The storefront builder tool uses a simple module system to build sections that contain valuable information, pictures, and videos about a brand and its products.

Building launch traffic and sales

Once a product is launched, sellers should have an established strategy for driving traffic towards each listing.

Setting up Amazon ads

Amazon PPC advertising is currently the best, paid ads solution available on the marketplace. It provides on-platform sales and connects a product to specific search terms, which in turn increase organic ranking more than off-platform ad sales.  Additionally, PPC ads are an ideal method for generating data on keyword conversion rates and testing search terms. A recommended strategy is to get started with running automated campaigns with an aggressive budget to analyse performance data. Once the campaign has run for several weeks, sellers should then switch to manual campaign with broad, phrase and exact keyword matching which builds upon the data collected.

Combining Amazon ads with external advertising off-platform using Amazon DSP or social channels is recommended for sellers with a higher budget looking to capture additional users that may not have discovered or interacted with their products on Amazon.  

Gathering reviews

Reviews are integral for a reputable Amazon seller, and the first few reviews can be the most difficult to acquire. Some merchants have found merit in using a friendly product insert or follow-up email sequences to encourage positive feedback, but specifically asking for positive reviews will violate Amazon’s Terms of Services. Instead, sellers should focus on increasing the value-added for each customer during the transaction to encourage positive reviews.

Seasonal & peak sales periods

Sellers launching around peak sales periods or festive shopping dates should be aware that this will influence traffic, keyword search volume, and average spend.

Know your niche before launch

As shown in this article, successfully launching new products on Amazon is determined by a variety of factors. Sellers looking to expand their product range should focus on creating efficient processes that can handle shipping, listing optimisation, content creation and advertising. Always remember to continuously optimise product listings, focusing on removing low-performing keywords and adding more value for customers wherever possible.