5 Reasons Why Most Product Launches Fail
Meta Description: Planning to launch a product on Amazon? If you want to ensure the success of your launch, read these 5 reasons why most product launches fail.
Launching a product is one of the most challenging aspects of being an Amazon seller.
From the product research to the actual day of product launch, you have to be hands-on to increase your chances for success
In a marketplace as competitive as Amazon, putting in the hard work doesn’t automatically translate to a successful launch. You have to be smart when it comes to launching your products.
In this article, we’ll try to explore ways to avoid unsuccessful product launches. By knowing why your product launches fail, you can quickly improve your chances of success.
Ready to reduce the risks in your product launch?
Then let’s start exploring the 5 reasons why most product launches fail (and what you can do to avoid it)
1. Lack of Proper Market Research
One of the most common reasons why product launches fail is the lack of market research. Even before launching your first product, you should already immerse yourself in deep market research if you want a chance to compete for the top spot. Some newbie sellers think they could simply pick a product, build a store, create a listing, and wait for customers to come.
And this can’t be farther from the truth. If you want to succeed as an Amazon seller, proper market research is crucial to your success.
This means you have to know how to look for low-competition, high-demand products on Amazon. You must also know how to find the best-selling categories on Amazon.
To have a fighting chance against millions of other third-party Amazon sellers, you must find products and categories where you can compete without spending a fortune on advertising and marketing. Proper market research is the answer to this problem, which is why you need to be great at this task or you can hire professionals to help you out.
2. Not Using The Right Keywords
Finding the right product is just the first step. To ensure that your listings are getting enough traffic, you must also use the right keywords to promote your products. Let me give you an example. If you are selling a dog brush, simply using the keyword term “dog brush” in your listing is not enough.
First of all, the keyword “dog brush” is very competitive, and many big brands are fighting to get the top spot for this keyword. Yes, this keyword has lots of organic searches, but there is also a lot of competition. Do you think you’ll have a chance to get the top spot if you decide to target the “dog brush” keyword for your product launch? The answer is most likely no unless you are willing to spend a lot of money on marketing. Instead of using “dog brush,” you can target the keyword “soft brushes for dogs” instead. Both keywords appeal to the same audience group, but “soft brushes for dogs” has less competition.
This means you have a much higher chance of reaching the top spot if you optimize for this keyword.
3. Targeting The Wrong Audience
Even if you have the best product in the world, you won’t be able to make lots of profit if you sell your product to the wrong audience. Finding the right audience for your product is winning half the battle. Targeting the wrong audience can be detrimental to your product launch. If your target audience lives in a desert, would you sell them thick winter coats? Chances are, you won’t make a sale no matter how great your products are.
Why? Because you are targeting the wrong audience, they will never be interested in the products you are selling. Make sure to know your audience before launching a product so that you can use the right marketing tools to reach them. Knowing your audience and getting inside their heads is the key to a successful product launch. If you know what they want, you have already won half the battle.
4. Not Using Amazon PPC Campaigns To Push Sales
One of the biggest mistakes that inexperienced sellers often make is not using Amazon PPC to push the sales velocity of their products. During the first few weeks of a product launch, Amazon enters your product into a “honeymoon period,” which is very helpful when it comes to generating sales velocity.
So, what happens during this “honeymoon period”? Simple. Your product gets pushed higher in search engine results during this phase, and your products are shown more to your target audience. This means that you have a much higher exposure during the honeymoon period, which is why you should take advantage of this by using Amazon PPC to push more traffic to your listings. By using Amazon PPC campaigns to get more exposure, you can increase your traffic exponentially during the honeymoon period. You can generate lots of sales during the honeymoon phase, which means more sales data and customer reviews for your products.
And according to the Amazon A10 Algorithm, sales velocity and customer reviews are two of the most significant factors that influence organic search rankings on Amazon.
Running pay-per-click campaigns can help increase both, which is why running PPC campaigns is crucial to your success.
5. Not Focusing On Inventory Management
You might not think this is important, but managing your inventory before, during, and after launch is crucial. Running out of items to sell just when your sales velocity is starting to increase can stop the momentum of your launch. Similarly, stocking up on too many items that you can’t sell is detrimental to your success. Overstocking may lead to increased storage fees, so you need to be smart with your inventory management. Inexperienced sellers often overlook the importance of storage, fulfillment, and inventory management. If you are running an Amazon FBA fulfillment method, you must always ensure that your inventory is well-stocked.
Launching a product on Amazon takes time, skill, patience, and hard work. However, not every launch will be successful even if you take all the necessary precautions to avoid failure. Such is the nature of selling on Amazon. Minimizing the risks of a failed product launch can be achieved by understanding why most product launches fail. Hopefully, the 5 reasons that I have shared in this article can help you ensure the successful launch of your product.
Need help with creating your winning product launch plan? Contact Global E-commerce Experts to get answers to any questions you may have.
Author : Omar Deryan – firstname.lastname@example.org