Do you want to grow your ecommerce business? Well, who would say “No” to that? Nevertheless, while there are many ways to do so, launching on Amazon is a sure-shot way of achieving that goal. But, you must be wondering - Why should you have a strategy beforehand? Why can’t you launch the product, see how it sells and scale the portfolio accordingly?
In a nutshell, launching a product on Amazon without a Go-to-Market strategy is like going to a war without your weapons.
While Amazon has crystal clear selling policies and summarizes best practices for Amazon retailers, the lack of a solid Amazon Go-To-Market Strategy makes it difficult to actually make money with Amazon. Let’s dig deeper!
Whenever a new product is launched, Amazon gives an initial push to the product to evaluate the user experience (click-through rates, conversion, etc.). Not getting your pricing, inventory, and targeting right means that you not only lose out on the precious initial push but also take longer to figure out the right fit for your product. And with ever-growing competition on Amazon, time sure is money.
Businesses should launch their products on Amazon by factoring in market size, competitor pricing, bundling strategies, product variants, and inventory levels.
- Market Size Estimation – Evaluate the market potential by analyzing the most relevant searches for the product/category. Also estimate the potential M-O-M growth of the product/category over the next 12-24 months. Seasonality (if any) is also factored in to arrive at the best possible growth projections.
- Competition Research – Next, assess your most relevant prospective competitors on Amazon to understand their product mix as well as their pricing. This enables you to have better insights for your brand positioning on Amazon.
- Top Players Assessment – Further look at the top 5 competitors and estimate M-O-M sales for the first 3-6 months after their product launch on Amazon. This assessment helps you set benchmarks for your prospective programs on Amazon.
- Click and Conversion Rates – Analyze the click and conversion rates by dividing the most relevant keywords into different buckets for the top 3 organically ranking products on Amazon. This analysis helps you to not only focus on the right kind of keywords post-launch but also devise a customized strategy for product promotions.
- Sales and Inventory Forecast – Forecast your product’s M-O-M sales for the first six months along with the respective inventory requirements. This helps you plan the required inventory well in advance, which ensures a smooth execution post-launch.
Always customize your launch strategy before launching new on Amazon. Follow the points mentioned above and get the launch strategy right.