When launching a new product on Amazon, your list of things to do seems to get longer and longer. Now that you have finished your extensive product research, you want to make sure the release of your product is equally successful, but where do you start?
Getting your product to the top of the search results is going to be the best way to ensure your product is noticed, considering this is where 90% of sales are made. Your main goal at this point is sales velocity. You want to get your volume of sales higher than your competitor so you can rank higher in the search results.
We have compiled a list of the top 10 most strategic tips when releasing your product on the world. Since this is a lot to cover in one blog post, we'll give it to you in digestible chunks. Here's part 1 of the series:
1. Always Start With a Product Giveaway or a Discount Coupon Code
Product giveaways have been known to be the fastest way to build sales and increase conversion rates. It also offers a great way to get your product noticed and rise to the top of the search results. While you can’t give away your product for free, you can give it away at a deep discount. In order to do this, you will want to create a coupon code and distribute them on reputable sites that have been known to circulate coupons in this capacity. Services such as Zon Blast and Jump Send, have a huge membership base of people who are eager to buy products at a discounted price.
These discount coupon will skyrocket your conversion rates up to around 50% for your product launch, but your discount is basically giving away your product. Experts say for the initial launch have your coupon code reduce your price to 10% its retail value or simply go with 99 cents. This number may seem scary but you want to gain enough momentum in the beginning so that when you put these 10 tips to work you will have no problem making your money back.
The upside to this is you will get high conversion rates, the downside is you are giving away product. However, you are bound to make this money back when your product is ranked high in the search result and people are purchasing at your desired price.
2. Always Stay in Stock
During your product giveaway, your product is likely to fly off the cyber shelves and you’ll want to make sure you are continuously checking to make sure you remain in stock. You will need to monitor your products and get an idea of how long it will take your supplier to restock those items versus how long until you completely run out of stock. Ideally, you want your stock to arrive before you run out. You do not want have your stock depleted and cause your listing to be inactive while you scramble to restock.
If the worst happens and you do temporarily become out of stock, you will notice your rank will drop dramatically. Not only that, but this also gives competitors a chance to catch up. While we wouldn’t recommend this for a new product -or during a product launch, for that matter- there are ways of recovery. One example would be to offer another promotion or discount to kickstart sales in a positive direction.
3. Use Amazon Sponsored Products
Another great way to gain visibility during your product launch is utilizing Amazon’s Sponsored Product ads. Using Sponsored Product ads is a great jumping off point to get your product seen, as they are featured on the first page of search results or product detail pages. This will help increase sales by displaying ads when shoppers look for related products. With Amazon’s Pay per click campaigns, you only pay when a shopper clicks your ad to go to the detail page. This works great when you are on a budget and gives you an idea of what you can expect from a PPC campaign.
Sponsored Product ads can be a good way to get visibility and keep your marketing costs low. However, for a new product launch, your main focus should not be on profitability, but to see if your product pricing is good enough to compete and be successful on Amazon.
You’ll want to keep an eye on your click-through rate and your conversion rates then compare these numbers to your organic conversion rates. This will help you understand how your product will stand up next to the competition. Having a profitable campaign is great, but your product will have a hard time in organic ranking if it only converts a small fraction of clicks to customers.
Continue on to part 2 here.