7 Product Launch Mistakes
Avoid these 7 mistakes during the product launch!
The next product launch on Amazon is coming up? The following 7 mistakes should be avoided!
To achieve rapid success with new products on Amazon, a smooth and perfect product launch is essential. Good preparation and intensive planning are required to get the most out of the product launch.
We would like to prevent you from making the seven most common mistakes before you launch your next product. A lot of sellers had an unsuccessful start and gave away good opportunities on Amazon due to those mistakes.
Mistake 1: Poor Preparation & Planning
Preparation is essential. After finding a suitable product, it is important to analyse its current market situation because the following questions need to be clarified before launching:
- How high is the demand for my product?
- Which target group is addressed?
- Which colour variation of my product has higher demand?
- With Clothes: Which cloth size should I order the most?
If you clarify these questions in advance, you save yourself from later expenditures without tying up capital unnecessarily. It would be a nuisance if, for example, you are able to sell all the red jackets but still have 90% of the blue jackets left, since the demand for it is simply not given.
Here, it is helpful to conduct surveys on market research portals. We also offer such a feature on our ShopDoc Deals platform. The feature allows you to ask product testers about your new product and thus receive valuable insights into the target group, the quality of the product and the packaging design. Additionally, you will learn which colour (for clothing: which size) is most in demand.
The best preparation also involves choosing a reliable producer/supplier. An undependable producer/supplier often leads to delays in your product launch. Inquire in advance and do not choose the first or cheapest producer/supplier available.
Mistake 2: Poor Cost Calculation
Cost calculation is of course part of the preparation process. It is of such high importance that it is listed here individually. A detailed cost calculation already starts with the order quantity of the product. For most suppliers, the purchase price depends on the quantity ordered, thus precise considerations are important here. Is it better to order more and thus lower the unit costs or opt for the more “safe” choice? It depends on what the preliminary analysis of the product has revealed. Is the demand high? Is it possible that the product sells rapidly? If you cannot answer these questions for sure, a smaller order is recommended.
Next, you should create a cost plan. Relevant key points are:
- Purchasing Price
- Freight Charges
- Customs Duties
- FBA Fees
In order to avoid calculating these costs manually, FBA calculators are helpful. Amazon has its own FBA calculator, but it is not very extensive and does not include custom duties among other things. (Extensive free alternative: www.fba-calculator.com)
With the cost statement, you can now calculate how the product price must be set in order to achieve the desired margin. Of course, later price adjustments are still possible if you start with a cheaper launch price.
Mistake 3: Poor Listing Optimisation
Starting with a poorly-optimised listing is one of the biggest mistakes an Amazon seller can make. An optimised listing not only increases the conversion but also the retention time on the product page and ensures a reduced number of returns. Also, choosing the most relevant keywords for the frontend and general keywords in the backend is essential.
If you launch a new product with a poorly-optimised listing, less potential customers will reach the product page due to low visibility. In addition, a listing that has not been optimised in a customer-oriented way, does neither seem very interesting for the customers nor answers questions they might have. This often leads them to prefer a competing product.
Mistake 4: Insufficient Product Tests Before Launch
Before the official product launch, the product (sample) should be put to the acid test. Is the quality satisfactory? Does the packaging contain all important markings, warnings and seals? Is the use/handling as expected? What else needs to be adjusted or changed? Ideally, you should not answer these questions yourself, but instead ask people from your future target group. The resulting information is usually more meaningful and helpful. On the ShopDoc Deals platform, sellers have the opportunity to give prelaunch products or samples to qualified product testers to receive advice and suggestions for improvement in return. Quite often gaps in the package insert or quality defects are discovered.
ShopDoc Deals – The Platform for More Success on Amazon!
Mistake 5: Poor Competitor Analysis
A competitor analysis provides information about the current market situation of the product. Sales and turnovers show which stock level you should begin with. An analysis of the competing listings provides information about the level of optimisation and helps you with the keyword research. Additionally, it makes sense to take a look at the reviews of the competing products: What kind of defects/ problems have the customers encountered with the product? Try to eliminate these defects from your product in advance to place yourself ahead of the competition.
Feel free to use the ShopDoc sales detective which shows you the daily sales and turnovers of competitors.
Mistake 6: Insufficient Stock
One of the most common mistakes is a shortage of stock during the product launch. If the product sells faster than expected or if you have ordered too little, it can quickly happen that the stock is heading towards zero and the product finally goes „out of stock“. This can be disastrous for a product because the keyword ranking and the best seller rank, generated by the previous sales & reviews, fall rapidly. If you are not able to restock in a timely manner, it will be difficult to quickly return to the old ranking position.
Mistake 7: Too Little or No Advertising Budget
A lot of sellers shy away from investing money into advertising. Instead, they hope that the product will sell well even without marketing. The reality often looks different: strong competition does not allow a new product to reach the top. The solution: Ads. Invest a sufficient amount into advertising at first until you reach a secured position. For this you have a wide range of advertising options available. The internal Amazon PPC campaigns, external traffic through Facebook advertising or Google Adwords.
Product Launch Checklist
In summary: What should you pay attention to when launching a product?
- Be sufficiently prepared and plan your product launch in detail
- Analyse the target group of your product beforehand and calculate all costs and determine the product price and margin
- Analyse your competition, review the current market situation and observe the demand for your product
- Test the product or ask experienced product testers for their opinion
- Optimise the product listing and improve user-friendliness
- Order an appropriate amount to avoid being “out of stock”
- Include a budget for advertising