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Amazon Vendors Product
Launch Acceleration Series
How Brands Can Accelerate Product Launches on the Amazon Marketplace
9- 9:45 am PT
CPC STRATEGY PRESENTS:
THE FIRST STEPS FOR A PROFITABLE
PRODUCT LAUNCH
Today’s Timeline
ECOMENGINE PRESENTS:
A SMART PRODUCT REVIEW STRATEGY
FOR LAUNCHING NEW PRODUCTS
10 - 10:45 am PT
Today’s Speakers
Stuart Dooley
Sr. Marketplace Channel
Analyst
Eric Kauss
Manager, Vendor
Operations
Today’s Logistics
● Session Recording & Slides Will Be Sent Out
● Submit Questions to Our Panelists
● Resources Available as Handouts
● Join in the Poll Questions!
Persephanie Arellano
Webinar Coordinator
Experts-Only Approach
Strategic acquisitions have positioned us as the
leading independent performance marketing agency
Search • Social • Amazon • Email • Display • Shopping & Data Feed • SEO • Affiliate •
Conversion Rate Optimization • Creative Services • Analytics & Marketing Science
Today’s Agenda
● Review the Born-to-Run program
● Top marketing strategies for launching a product in the Amazon marketplace
● Using third party data to determine sales velocity for highly relevant keywords
● Options to support inventory in Amazon retail analytics
● Core metrics that impacting demand
What do you find is the biggest struggle when
launching a new product on Amazon?
Born-to-Run Program
Born-to-Run Program
“Born to Run”
Select Vendors now have the
opportunity to launch new
products on Amazon at an
accelerated rate.
Born-to-Run Program
How does “Born to Run”
work?
If a Vendor is confident a product is
going to sell well on Amazon, they
might want to apply for “Born to
Run” to jump-start the Amazon
flywheel.
Born-to-Run Financial Liabilities
What are the potential
costs?
● AMS Spend
● Buyback Potential
The Marketing Product Launch Strategy
The Marketing Product Launch Strategy
Advertising Promotions InfluencersContent
Leveraging Advertising to Drive the Amazon Flywheel
Advertising
Build out one of each of the two campaign options to launch a
new product or feature products that are seasonally in demand.
● Automatic Targeting: Amazon targets ads to all relevant
customer searches based on product information.
● Manual Targeting: Sellers manually set keyword options for
Sponsored Products ad campaigns.
The Marketing Product Launch Strategy
Promotions
Promotions build product and brand
awareness. Funneling these promos
directly back to Amazon is another way
to increase overall sales velocity,
conversion rate, and review count for
a new product.
The Marketing Product Launch Strategy
Content
Products with optimized content show
Amazon that it can efficiently convert
traffic, a rise in organic rankings is
often a natural side effect.
The Marketing Product Launch Strategy
Leverage Influencers – Influencer
Marketing is a powerful strategy that
incorporates social media and content
to build relationships with trusted
people in your industry and drive your
brand’s message to a target audience.
Average Sales Velocity
Average Sales Velocity
● Use third party data to determine sales velocity for highly relevant
keywords.
● When launching a product, it’s also important to utilize third party
data to drive off-Amazon traffic to your listings.
Strategy: Repricing, as well as aggressive bidding on certain keywords to
improve organic ranking, and ultimately increase conversions.
Navigating Amazon’s Probability
Demand Forecast
Operational
Foundation - Path to
Sales & Profits
Demand Forecast - Purchase Orders
● Indirect Market Factors
○ Sales Performance
History
○ Seasonality
Market Factors
Demand Forecast - Market Factors
Interpreting Amazon’s Probability Forecast
P90
10% Amazon
will purchase
more
P80
20% Amazon will
purchase more
P70 30% Amazon will purchase more
Mean
For vendors that need more lead-time to acquire inventory
➔ 6 weeks or longer
➔ Key for vendors who manufacturer overseas
Understanding the New Amazon
Probability Level (P-Level) Demand Forecast
Forecast is a rolling 26 week estimate as close as possible to actual customer
demand. Demand is predicated on total traffic to a detail page whether a
customer purchases from 1P or 3P.
Presented in different probability
levels giving vendors a choice of
how to stock inventory based on
risk tolerance
No longer calculates safety stock
into demand
Continues to use Vendor
Lead-Time (VLT) for the
calculation of actual purchase
order quantities per week
✓
✓
✓
✓ Does not represent a purchase
order forecast
Top 4 Factors Impacting Demand
Traffic to the
Detail Page
Amazon’s
Profitability
Vendor
Lead-Time
(VLT)
Sales History
Adverse Effect of Inefficient
Demand Forecasting
True Cost of Stocking Out
Lost sales when
product is out of
stock
Loss in organic
ranking (result of
lost sales velocity)
Re-investment in
resources to
recover ranking
True cost of stock
outs on Amazon
Alternative to Protect New Product
Launches
Strategic Suggestions in Using the Forecast
Purchase Order vs. Demand Tracking
● Demand forecast → previous 13 weeks sales; compare these to actual
purchase orders
● Track the demand vs. purchase orders on a weekly basis
● Not all asins are the same
● Amazon is still expecting a 100% confirmation rate
Back Up Planning: Direct Fulfillment / Drop-Ship
Advantages of Direct
Fulfillment/Dropship
● Vendor’s inventory acts as a backup
● Make a vendor’s entire catalog available
● Build demand for new products at a quicker
pace
● Protect sales
Hybrid Approach to Selling on Amazon
The Amazon Hybrid Strategy
Allows a Vendor to:
● Keep up with demand
● Pricing control
● Flexibility
● 3rd party direct shipping or FBA
● New product launches
SMALL TEXT
STACK TEXT ROW 1
STACK TEXT ROW 2
Schedule Your 1-1
Advanced Amazon Advertising
Strategy Evaluation
Q & A
Stuart Dooley
Sr. Marketplace Channel
Analyst
Eric Kauss
Manager, Vendor
Operations
Blog: What is the Amazon Born To Run Program?
Link to Blog:
https://www.cpcstrategy.com/blog/20
18/11/amazon-born-to-run-program/
Posted by: Tara Johnson,
Content Specialist
Blog: How Amazon Operations Can Boost Your
Profitability
Link to Blog:
https://www.cpcstrategy.com/blog/
2019/04/amazon-operations/
Posted by: Greg Swan,
Content Specialist
Amazon Vendors Product
Launch Acceleration Series
Please hold for our next presentation starting at 10am PT / 1pm ET
ECOMENGINE PRESENTS:
A SMART PRODUCT REVIEW
STRATEGY FOR LAUNCHING NEW
PRODUCTS
How Brands Can Accelerate Product Launches on the Amazon Marketplace

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Amazon Vendors Product Launch Acceleration Series

  • 1. Amazon Vendors Product Launch Acceleration Series How Brands Can Accelerate Product Launches on the Amazon Marketplace
  • 2. 9- 9:45 am PT CPC STRATEGY PRESENTS: THE FIRST STEPS FOR A PROFITABLE PRODUCT LAUNCH Today’s Timeline ECOMENGINE PRESENTS: A SMART PRODUCT REVIEW STRATEGY FOR LAUNCHING NEW PRODUCTS 10 - 10:45 am PT
  • 3. Today’s Speakers Stuart Dooley Sr. Marketplace Channel Analyst Eric Kauss Manager, Vendor Operations
  • 4. Today’s Logistics ● Session Recording & Slides Will Be Sent Out ● Submit Questions to Our Panelists ● Resources Available as Handouts ● Join in the Poll Questions! Persephanie Arellano Webinar Coordinator
  • 5. Experts-Only Approach Strategic acquisitions have positioned us as the leading independent performance marketing agency Search • Social • Amazon • Email • Display • Shopping & Data Feed • SEO • Affiliate • Conversion Rate Optimization • Creative Services • Analytics & Marketing Science
  • 6. Today’s Agenda ● Review the Born-to-Run program ● Top marketing strategies for launching a product in the Amazon marketplace ● Using third party data to determine sales velocity for highly relevant keywords ● Options to support inventory in Amazon retail analytics ● Core metrics that impacting demand
  • 7. What do you find is the biggest struggle when launching a new product on Amazon?
  • 9. Born-to-Run Program “Born to Run” Select Vendors now have the opportunity to launch new products on Amazon at an accelerated rate.
  • 10. Born-to-Run Program How does “Born to Run” work? If a Vendor is confident a product is going to sell well on Amazon, they might want to apply for “Born to Run” to jump-start the Amazon flywheel.
  • 11. Born-to-Run Financial Liabilities What are the potential costs? ● AMS Spend ● Buyback Potential
  • 12. The Marketing Product Launch Strategy
  • 13. The Marketing Product Launch Strategy Advertising Promotions InfluencersContent
  • 14. Leveraging Advertising to Drive the Amazon Flywheel Advertising Build out one of each of the two campaign options to launch a new product or feature products that are seasonally in demand. ● Automatic Targeting: Amazon targets ads to all relevant customer searches based on product information. ● Manual Targeting: Sellers manually set keyword options for Sponsored Products ad campaigns.
  • 15. The Marketing Product Launch Strategy Promotions Promotions build product and brand awareness. Funneling these promos directly back to Amazon is another way to increase overall sales velocity, conversion rate, and review count for a new product.
  • 16. The Marketing Product Launch Strategy Content Products with optimized content show Amazon that it can efficiently convert traffic, a rise in organic rankings is often a natural side effect.
  • 17. The Marketing Product Launch Strategy Leverage Influencers – Influencer Marketing is a powerful strategy that incorporates social media and content to build relationships with trusted people in your industry and drive your brand’s message to a target audience.
  • 19. Average Sales Velocity ● Use third party data to determine sales velocity for highly relevant keywords. ● When launching a product, it’s also important to utilize third party data to drive off-Amazon traffic to your listings. Strategy: Repricing, as well as aggressive bidding on certain keywords to improve organic ranking, and ultimately increase conversions.
  • 21. Operational Foundation - Path to Sales & Profits
  • 22. Demand Forecast - Purchase Orders ● Indirect Market Factors ○ Sales Performance History ○ Seasonality Market Factors Demand Forecast - Market Factors
  • 23. Interpreting Amazon’s Probability Forecast P90 10% Amazon will purchase more P80 20% Amazon will purchase more P70 30% Amazon will purchase more Mean For vendors that need more lead-time to acquire inventory ➔ 6 weeks or longer ➔ Key for vendors who manufacturer overseas
  • 24. Understanding the New Amazon Probability Level (P-Level) Demand Forecast Forecast is a rolling 26 week estimate as close as possible to actual customer demand. Demand is predicated on total traffic to a detail page whether a customer purchases from 1P or 3P. Presented in different probability levels giving vendors a choice of how to stock inventory based on risk tolerance No longer calculates safety stock into demand Continues to use Vendor Lead-Time (VLT) for the calculation of actual purchase order quantities per week ✓ ✓ ✓ ✓ Does not represent a purchase order forecast
  • 25. Top 4 Factors Impacting Demand Traffic to the Detail Page Amazon’s Profitability Vendor Lead-Time (VLT) Sales History
  • 26. Adverse Effect of Inefficient Demand Forecasting
  • 27. True Cost of Stocking Out Lost sales when product is out of stock Loss in organic ranking (result of lost sales velocity) Re-investment in resources to recover ranking True cost of stock outs on Amazon
  • 28. Alternative to Protect New Product Launches
  • 29. Strategic Suggestions in Using the Forecast Purchase Order vs. Demand Tracking ● Demand forecast → previous 13 weeks sales; compare these to actual purchase orders ● Track the demand vs. purchase orders on a weekly basis ● Not all asins are the same ● Amazon is still expecting a 100% confirmation rate
  • 30. Back Up Planning: Direct Fulfillment / Drop-Ship Advantages of Direct Fulfillment/Dropship ● Vendor’s inventory acts as a backup ● Make a vendor’s entire catalog available ● Build demand for new products at a quicker pace ● Protect sales
  • 31. Hybrid Approach to Selling on Amazon The Amazon Hybrid Strategy Allows a Vendor to: ● Keep up with demand ● Pricing control ● Flexibility ● 3rd party direct shipping or FBA ● New product launches
  • 32. SMALL TEXT STACK TEXT ROW 1 STACK TEXT ROW 2 Schedule Your 1-1 Advanced Amazon Advertising Strategy Evaluation
  • 33. Q & A Stuart Dooley Sr. Marketplace Channel Analyst Eric Kauss Manager, Vendor Operations
  • 34. Blog: What is the Amazon Born To Run Program? Link to Blog: https://www.cpcstrategy.com/blog/20 18/11/amazon-born-to-run-program/ Posted by: Tara Johnson, Content Specialist
  • 35. Blog: How Amazon Operations Can Boost Your Profitability Link to Blog: https://www.cpcstrategy.com/blog/ 2019/04/amazon-operations/ Posted by: Greg Swan, Content Specialist
  • 36. Amazon Vendors Product Launch Acceleration Series Please hold for our next presentation starting at 10am PT / 1pm ET ECOMENGINE PRESENTS: A SMART PRODUCT REVIEW STRATEGY FOR LAUNCHING NEW PRODUCTS How Brands Can Accelerate Product Launches on the Amazon Marketplace