Part 2: The True Cost of Launching a Product on Amazon: A Comprehensive Guide

Welcome back to our two-part guide to launching a new product or brand on Amazon. This is the second and final part of the guide. 

In the first part of the guide, we walked you through the pre-development and product development phases of launching a new product. This part will look at the Amazon side of things, covering everything you need to know and budget for on the listings and launch strategy side.

Amazon Listing Optimization

After your product has been developed, tested, mass produced, shipped and is now sitting safely in Amazon’s FBA warehouses, let the selling begin! One of the keys to getting customers to be aware of your product is optimizing your listings on Amazon.

Writing Compelling Product Titles with Relevant Keywords

There’s a whole lot more that goes into writing a product title than you might assume. Leverage keyword research tools like MerchantWords, with subscription costs ranging from $30 to $100 per month, to figure out the most effective wording that will work in harmony with Amazon’s internal search algorithm.

Crafting Persuasive Product Descriptions to Drive Conversions

Don’t skimp on the description! Words matter and there are professionals out there who know the psychology behind product descriptions. Outsource copywriting through platforms like Upwork or hire specialists from services like CopyPress, with costs varying based on expertise.

Keyword Research and Optimization

Continuously optimize your listing keywords using tools as competition changes and market trends shift. The optimization process is ever evolving, don’t sit back and let your listings get “stale”, stay on top of the trends.

Images

Hire professional product photographers from platforms like Thumbtack for high-quality images. Amazon also offers a relatively inexpensive product photography service.  Photography rates vary greatly and may range anywhere from $100 to $1000s of dollars, but it is arguably the most important tool you have for selling your product to your customers. 

A+ Content Creation

Amazon provides a feature called "A+ Content" (formerly known as Enhanced Brand Content) that allows sellers to create rich content with images, text, and additional details to showcase product features. If you don’t have time to do it yourself, consider hiring contractors from Fiverr or Upwork to create the content for you for $5 - $100.

Leveraging Positive Reviews

Amazon basically invented the online review process and it continues to be a major factor in helping customers make their buying decision. Encourage reviews through automated email campaigns with services like FeedbackWhiz or Salesbacker (subscription costs may range from $20 to $100 per month). Positive reviews not only build trust but also enhance your product's search ranking. You must be actively trying to get positive reviews ALL THE TIME.

Participate in Amazon's Vine Program to secure early reviews from trusted reviewers, boosting credibility and social proof. It is an inexpensive way to gain those first few hard-to-get reviews on a new product.

Ongoing Listing Optimization

Listing optimization isn’t a one-and-done thing – you need to constantly reevaluate your listings. Check out the Seller Tools and the free Chrome extension that can check sales, request reviews, improve search result rankings, heighten customer experience, and boost your LQS (Listing Quality Score).

Product Launch Strategy

“If you build it, they will come” is a great movie line, but it does NOT apply to your product and listings on Amazon. No one will come to you and buy your product without the proper planning and execution of your launch strategy.

Pre-Launch Planning

Define a structured launch strategy. How are you going to get the word out that you now offer this life-changing product?? Fortunately, there is a whole world of service providers who have done a lot of the homework for you.

• Create a comprehensive launch checklist and timeline with services like Trello or Asana, ($10 to $30 per month)
• Use Canva or Adobe Spark for creating promotional assets and social media content. ($10 to $30 per month)
• Leverage analytics tools like Google Analytics to measure the results of your launch. Costs vary based on the specific tools used.

Get Prepared to Track and Stay on Top of Your Inventory

Inventory tracking is a daunting task. Figuring out the timing of a re-order versus managing your cash flow can be a very tricky endeavor. Thankfully, there are tools like SoStocked that can help with avoiding stockouts and forecasting your future restocking needs accurately.

Marketing and Advertising

Your listings are up, you’ve planned out the timing of your launch, you’ve created compelling assets and content and now you’re ready to spread the news of your product all over the internet!

Promote on Social Media Platforms

Use platforms like Hootsuite or Buffer to schedule and manage social media posts, promoting your product across various platforms. ($15 to $30/mo)

Leverage Social Media Influencers

Connect with influencers through platforms like Influencity or AspireIQ to expand your product's reach while building social proof. ($100 - $1000/post depending on the influencer)

Email Outreach

Leverage email marketing tools like Mailchimp or Klaviyo to nurture customer relationships and drive repeat business. ($10 - $50/mo)

Deal Pages

Create deal pages using landing page builders like Unbounce or Leadpages. ($15 - $50/mo)

Google, Meta & TikTok Ads

Run targeted ads all over the internet and retarget the right demographics with off-Amazon advertising solutions like PixelMe. PixelMe is ideal for launching products as it can help skyrocket their organic ranking quickly by driving external traffic to your listings.

Inventory Management

Implement effective inventory management using tools like SoStocked to streamline operations and reduce costs. Also, do not underestimate how often Amazon will lose or damage your inventory while it is in their warehouses. It is imperative to utilize tools such as Seller Investigators to claim your rightful reimbursements from Amazon and recover that capital.

Automate Pricing

Use repricing tools like RepricerExpress or Informed.co to automatically adjust prices based on market conditions and competitor pricing. ($50-$500/mo)

Run Amazon PPC Campaigns

Arguably THE most important advertising you can do to sell your product successfully on Amazon is to utilize Amazon’s own PPC platform. Amazon Advertising is a whole world unto itself, so save time and hassle and employ the help of experts like PPC Entourage.

Analyzing Performance Metrics

It’s not enough to spend your hard-earned money on all that marketing and advertising, it could all be for naught unless you utilize available tools and analyze how your campaigns performed. You must always be sharpening the blade of your outreach, or else you may just be wasting your spend on effective messaging to the wrong audience.

Sales Metrics

Analyze sales metrics with tools like SellerBoard or HelloProfit, gaining insights into revenue, profit margins, and sales trends. ($15 - $500/mo)

Review Metrics

Monitor review metrics using services like AMZAlert to stay informed about customer feedback and sentiment. Plus you can protect your business with real-time inventory alerts, listing alerts, negative review alerts, and more. ($30 - $300/mo)

Search Rank

Track your product's search rank with tools like Helium 10 or AMZTracker, adjusting strategies to improve visibility. $50-$400/mo

Customer Service Metrics

Utilize customer service tools like Zendesk or Freshdesk to track response times, query resolution rates, and customer satisfaction. ($0-$200/mo)

Advertising Metrics

Examine advertising metrics using Amazon's advertising console or tools like Perpetua. ($50 - $150/mo)

Other Financial Aspects and Incentives

Consider Your Costs

Maintain a detailed financial plan, considering all costs associated with product development, launch, and ongoing operations.

Take a look at some of the existing benefits from selling on Amazon for new sellers:

• 5% Back on the First $1,000,000 in New Brand Sales
  Participate in the Amazon Brand Referral Bonus to receive a 5% rebate on sales, potentially saving on referral fees.
• 90 Days of Free Storage with FBA
  Utilize FBA to benefit from 90 days of free storage, optimizing your inventory management. Details in Seller Central – search for New Selection Program.
• $100 Off Inbound FBA Shipping Using the Amazon Partnered Carrier Program
  Leverage the Amazon Partnered Carrier Program for reduced shipping costs when sending inventory to FBA.
• Up to $50 in Free Clicks Toward a Sponsored Ad
  Take advantage of promotional credits for Sponsored Ads, maximizing your advertising budget.
• Up to $50 in Credits Toward Initial Coupons
  Use promotional credits for coupon campaigns, driving customer engagement.