A product launch on Amazon requires your best effort. This important step is when the flywheels can either start to move in your favor or your product could sink to the bottom of a very deep ocean. 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 2 of the series. You can read part 1 here in detail, but here are the three tips we covered.
Always Start With a Product Giveaway or a Discount Coupon Code
Always Stay in Stock
Use Amazon Sponsored Products
When you are able to utilize Amazon’s Marketing Services, you can target specific shoppers that are using certain keywords or are looking for products similar to yours. Another benefit to using AMS is they have already done all the research when it comes to who is purchasing what and when.
AMS also allows you to build ads quickly and easily. Your best bet is to find and target the low competition keywords. This has been proven to be a really easy money making strategy. When doing this, you want to figure out your key demographic in order to get the most conversions and the greatest sales velocity when you turn on your ads.
Once you do, AMS will let you set your own targeting, bid, campaign budget and duration your ads run for. You are also able to optimize your products sales performance with detailed sales reports. If you don’t know your numbers in terms of how many sales you make in proportion to how much you are spending on ads, you can assume you are losing money.
There is a common known formula to help you calculate your sales velocity. Many think the quantity of leads generated is the number to focus on, while others know that quantity doesn’t always mean quality. To get your sales velocity, you will want to take your number of leads times your conversion rate (as a percent) multiplied by your average deal size. You will take this number and divide it by the average number of days to close the sale. Your equation will look something like this:
(Number of leads x conversion rate (%) x average deal size) / Average number of days to close
By affecting any of these factors you can increase your conversion rates by three times, you just have to know where to look. We suggest taking a look at which leads turned into a sale and look for similar traits in other leads. Find out what was their demographic and what turned them into a sale. You also want to take a look at who browsed your website, retarget them and send them back through your funnel. This will be a strategic way you can boost your sales velocity past your competitor while keeping it budget friendly.
Pricing seems to be the most underutilized strategy, but often times most useful when it comes to promotion of a new product and getting sales. Pricing your product correctly greatly impacts two important factors when it comes to ranking: sales velocity and conversion rates. With the click of a button, sellers can go into sellers central, drop their pricing and get the jump on the competition.
Using this strategy for simply two weeks can have massive impacts on your conversions and sales and boost you past your competitors. This can also give you an idea of whether you have priced your product to conservative by seeing how the consumer responds to the price drop.
We'll be covering part 3 in the coming days. Keep an eye on this spot!