How to Launch a Successful Product on Amazon in a Few Easy Steps
By Oran Mochly
Are you keeping up with the changes for sellers on Amazon? Do you want to make the most of the post-coronavirus changes and challenges? With Amazon’s dynamic algorithm, changes happen all the time. This means new challenges are arising for sellers of private labels – but with new challenges come new opportunities!
Here are some tips and hacks that can help you navigate your launch in the best way possible.
Nail Your Niche
How do you decide which niche to choose? Start by determining the price drop of top competitors in a niche that you are curious about; review their sales rates and ask yourself some critical questions. What are the dynamics? What is the new sellers’ stability in the top three positions of the subcategories? What is the suggested bid for the top two keywords? These parameters can help you estimate the Advertising Aggressive and reflect your Ad Spend percentage. What is the review rate? What is the sensitivity of the price change in regards to the BSR? Once you have all the information that you need, decide which product is right for you.
Break It Down: Know Your Break-Even Price
First: Find your product potential and the right supplier.To calculate your break-even price, you need to take many things into account, such as your advertising budget, fees, COGs, taxes, returns estimation, and storage fees. Your break-even price is the point of balance that takes into consideration neither profit nor loss. At this point, you need to define the right price for you according to the average price in the market. In the beginning, you can start at a more competitive price, even lower than 40 %, in order to get the most effective organic results. Consider creating a launch progress table and monitoring the changes daily. Consider all the factors, including the promotion units and organic units. As you track the changes, you will be able to slowly increase the price per day until you achieve the most effective market sale price for you.
Keywords are Key
Build a list of highly relevant keywords. This means finding keywords that at least ten of your competitors all rank for. Once you have a list, it’s time to narrow it down to the top two keywords that you want to use. You are going to want to promote these two words organically and with a budget. In order to do this organically, you need to make sure the keywords are found on the product title and that they stand out on your description, bullet points, and the product backend.
Wake Up the Algorithm
Generate a two-step URL and make sure you find 10 to 20 buyers that will be able to purchase by searching keywords. With this method, increase daily sales gradually in the first 10 days. The target of this exercise is to show the algorithm that the product is relevant and related to the essential keywords. Make sure to find at least 10 people to try the product and create an honest review. To make this easier, you can use Amazon’s Vine Program.
The goal of the first reviews is to show that the product is of interest to people, grow your review rate, and grow the CVR of the product list.
Time For a PPC
After you receive your initial reviews, you can start doing PPC campaigns for your top keywords. Make sure you select high bids and an aggressive strategy – you are supposed to expect 100-200% ACOS ( Advertising Cost of Sale) in the first 3 days.
Don’t forget to monitor the performance of the product on a daily basis, and to make decisions according to the product’s trend – you can gain vital intelligence from measuring your metrics!
Brace Yourself for the Honeymoon Period
Yes, your first 60 days on Amazon as a seller is a honeymoon period! Why? Because your target is to rank your top keywords in the first five organic search results for optimum results. Why is it important? It’s important because you want to check the column of the organic unit increases day by day. For example, you may expect 20% organic units in the first 20 days. After 40 days, you can get to 50% percent organic, then 80%, 60 days after a successful launch.
Helium10 and Seller tools are both fantastic tools for tracking your organic position. Depending on your budget, you can narrow a huge list down to a shortlist of keywords that you want to target during your launch. For example, we targeted 16 phrases with SFR below 50K.
The secret to a successful launch is to research everything and anything that can help you make the right choices and to find the right product with good ROI potential with a low aggressive seller. Once you have all this covered, you are on your way to success!
