Webinar: How to Successfully Launch a New Product on Amazon
May 1, 2023
In this webinar 8fig’s Tanner Lefner talks to the CEO of Ritz Momentum, Izabella Ritz, and Mina Elias, who is the founder and PPC Expert of Trivium Group. Together they discuss how to succeed when launching a new product on Amazon, sharing from their vast experience in the industry.
Case Study: Pickleball Set
Izabella opens the conversation with a case study that Ritz Momentum ran. The goal was to identify a product with considerable selling potential. They decided on a 4-racket pickleball set, a choice that was made with their client’s budget in mind. At first, this market seemed oversaturated, but after taking a closer look it became clear that very few other stores sold 4-racket sets. This meant there was a clear entry point for them.
Next, they focused on finding ways to outdo competitors with superior marketing. The Ritz team did extensive keyword research to identify ways to stand out. They found that few competitors were using keywords in the most effective way, which they could use to their advantage and gain market share. To do this they used multiple software tools such as Helium10 to identify the most relevant keywords. Taking a close look at the data allowed them to make predictions about how well their pickleball set would sell. Given that searches for pickleball products had risen by 73% over the previous year, they foresaw strong sales numbers.
Additionally, Izabella found that pickleball sets are a relatively recession-proof product, given their ease of use and low cost compared to a gym membership, for example. They tend to sell year-round, with sales numbers highest in the summer. Given the relatively low number of sellers, it was easier to reach page 1 of search results than in more competitive sectors.
When deciding on the pricing she reverse-engineered the current market, wanting to understand why some items were priced at $39.99 and some at $99.99. Through this research, she discovered that the structure of the product matters a lot. Many buyers want to play the game long-term or in tournaments and therefore seek out higher quality. So the Ritz team looked up the specifics of pickleball and identified a great set of keywords that not many sellers were using: “USAPA approved.” The USA Pickleball Association’s seal of approval is important to many consumers that take the sport seriously so having it was crucial in attracting more customers.
Before launching a product it is important that you develop a thorough understanding of it. People might not buy it because you don’t meet their requirements. You need to know your product inside-out and how it should look before launching. In their research, Izabella’s team found that pickleballs should have a certain number of holes. This seemingly minor detail can have a major impact on sales, as pickleball enthusiasts pay close attention to such matters. Not knowing this might have resulted in them losing out on a significant amount of business.
However, at the end of the day, you never know how your product will perform. Sometimes it’s something small that has a big effect on your conversions. It is for this reason that no stone should be left unturned when doing product research.
Audience Question: How Can I Save on PPC and Still Perform?
Mina explains that the higher the CTR (click-through rate) on a keyword the more the CPC (cost per click) goes down. Without touching PPC (pay-per-click) advertising you can be more effective by focusing on improving your CTR and conversion rate. He recommends running 1 test a week, as well as putting out one new creative in your ads every single day. Doing so comes with a cost, but there are services like No Limit Creatives that start at around $400 a month. This will allow you to test and improve your ad performance constantly while giving you a large amount of material to compare and contrast.
Costs To Consider
In this segment, Tanner focuses on the average eCommerce store’s spending habits. 69% of sellers spend under $5,000 to get their products off the ground. There are a lot of costs involved such as product development, manufacturing, shipping, logistics, Amazon fees, advertising, marketing, compliance, and more. Taking care of all of these processes can take a serious amount of investment. New sellers should make sure that they have the necessary funding to launch their products, and then keep operations running smoothly.
Strategies for Scaling
8fig offers great growth opportunities to eCommerce sellers. Tanner explains how it can help sellers fund their current supply chain costs so that they can invest in new products and product lines. 8fig provides the financing that can allow a business to expand significantly. Increasing production means sellers can avoid running out of stock and prevent their sales momentum from being disrupted. This funding can also be used to expand to new areas, such as different parts of the US, to reach a larger customer base. The main focus, though, is to support your supply chain and scale your brand.
Optimizing pricing is another major focus for Tanner. If your price is too high, you’re going to lose out on sales. If it’s too low, then you won’t make enough money. It’s all about finding the sweet spot, which is easier said than done. Good market research will help with this decision. Investing in advertising campaigns can offer a meaningful boost to sales. Good marketing can raise demand for even high-priced products. Still, it is important not to overspend on advertising. The goal is to keep costs as low as possible while still being effective.
Finally, Tanner recommends that every eCommerce seller regularly invests in innovating. That means improving your product and listening to customer reviews. Their feedback should be used in conversations with your supplier to identify flaws and ways to improve the product. Perhaps you can release a new version of it entirely. Doing these things shows customers that you are paying attention to what they have to say and are making changes based on it. Giving them such an involved experience is likely to increase your return rate and reach.
If you would like help with your marketing and business operations, both Ritz Momentum and Trivium Group offer free audits to help you optimize your PPC campaigns and conversion rates. Their teams can take a look at your store and offer advice on how to optimize it, so don’t hesitate to check them out.
Julian writes about the ins and outs of eCommerce at 8fig. He is passionate about exploring and covering the dynamic and fast-paced world of online retail.