The question of whether you should be profitable during your product launch or not has been a hot debate in our industry.
And so today, I am going to walk you through the best strategies to help you grow in eCommerce. I am also going to share the timing of when you should be profitable during your product launch and what to do to get there. Our last few articles have been covering our winning formula for product launches, including our three phases that I have launched to help set your product up for maximum success when it comes to sales and conversions.
If you missed any of our previous content in the series, visit our blog at amazingathome.com/blog to catch up. Don’t forget to visit our YouTube channel, Amazing At Home, and subscribe to watch our latest content. I would appreciate it if you like, share, and leave me a comment should you have any questions or anything to add to the discussion. I love to see your comments as I’ve been working hard on this content. It means everything to me to know that you’re getting value or know if you have any questions that I can answer.
Now back to the topic at hand. Welcome back to our content segment product launch where we’ve covered how to launch the AAH way. Here’s a quick recap.
First, we covered three phases of launching:
- Phase one was Page Visits and Reviews, and why you should not start an auto campaign from the beginning.
- Phase two of launch, which is Traffic and Conversions, here you learned what kind of traffic to run to your listing and when you can move on to profitability.
- Phase three, the last phase of launch is Ongoing Sales and Conversions. Phase three is my favorite part of the launch. As you know already if you’ve been watching these videos, this is the part when we finally get to see some profit. Yay!
Phase three starts when all the phase two goals have been met. We covered these goals in our last article titled: Driving Amazon Traffic & Conversions With External Traffic. So there are checklists, and if you have been following this series, you know how much I love checklists! There are checklists in each article where I show you what you should have accomplished during each phase then what comes next when you’ve completed that phase. So stick around till the end of the article as I will be discussing the phase 3 checklist with you.
Phase Three Goals:
First, you want to stop all of your giveaway and rebate-type promotions, you want to be able to stop those promotions because you feel confident that you no longer need those kinds of freebies sales.
Second, you want to reduce your launch promotion percentages. Consequently, if you launched with 30%, or 40% off at the beginning, you can now start reducing those launch promotions because we’re trying to work our way up to profitability in the beginning.
During phase two, we were working for those sales conversions because we really wanted maximum conversions. And we still want maximum conversions, but once we’ve achieved that the algorithm helps us out. Therefore, now we can really reduce those percentages, be at the top of the page and continue to convert at a higher price point.
Furthermore, we want to optimize all of our advertising campaigns. So you’ve got a whole bunch of data that you gathered during phase two when you were running all of this diverse traffic to your listing. Now it’s time to actually optimize those campaigns and move towards that profitability that targets advertising cost of sales. This is going to enable you to be profitable.
And thirdly, once you’re done with the rest of this, you want to start planning your next order. Hopefully, by this time, you’re getting pretty close to selling out and you want to make sure that if you got some feedback from your customers and anything needs fixing, you are up to date with it. Or it could maybe be that you need to update your spec sheets with your suppliers. All of those adjustments can be made now. This grants us the opportunity to address any quality control concerns or any matter of that nature. And then, we can plan our next order, which is super exciting. It’s much easier to reorder than it is to order for the first time. That’s the part that takes the longest and the most planning. So YES, get excited because you finally get to make some money. And you get to plan your next order.
Now it’s time for my favorite part, the checklist. You know, I love checklists. What makes phase three unique is that it lasts for a really long time. This means it’s meant for ongoing sales and profitability. So you can be in phase three forever. You might run an occasional sales promotion. But really you can be in phase three for a long time unless you run out of stock and you need to go back to phase two or phase one and relaunch.
But how do you know where you need to be if you need to go back to the previous Phase?
Good question! I’m going to bring up my checklist so that you know that you’re right where you need to be in phase three. So my checklist is as follows. The first thing that you should be out asking yourself during phase three is: “Is your paid traffic converting?” So all this traffic that you’re sending, and your ad marketing, are they all working to your advantage? Is it converting? If it’s not converting, then we need to pause and find out what’s going on.
Second, are your ads optimized?. And are they starting to move toward your target advertising cost of sales and profitability? If so, are you starting to optimize those ads? Are things moving down? Or are your costs out of control, and you’re not sure why? If it’s out of control, you need to go back and take another look at it. And that means you’re not really in phase three because you’re not moving down for that target eight costs, we need to address whatever is going on there.
Checking if your organic sales and your placement are consistently improving. A great way to track this is to track the main keywords that you really are converting well for, you can track those in different software like helium 10, it has a section where you can track your placement for each of your keywords. If you want a good deal on helium 10, you can head over to amazingathome.com/resources, and all of our trusted resource providers are there, including discounts on lots of different software.
And finally, you are achieving sales and profits that enable you to confidently reorder. If you don’t have any other problems, then you should be able to move towards reordering, or updating our spec sheets, like we just talked about. But if all of those things are happening, then you can continue through phase three.
Until one of those things stops happening, and then you can address it. And maybe you need to move back into phase two or even phase one if you’re relaunching because maybe you ran out of stock. But as long as you’re meeting all of these goals here in this checklist, you can remain in phase three and keep it going.
This concludes our series on Product Launch. If you want all the juicy details and step-by-step guidance on launch plus access to one on one coaching from me, you can join our mastermind group at amazingathome.com/mastermind. You can also visit any of our previous content segments on launch here:
- The Best Way To Launch On Amazon For Immediate Sales Conversions
- Dominate Amazon’s Algorithm: Increase Traffic, Sales, And Rankings
- Driving Amazon Traffic & Conversions With External Traffic
Or YouTube channel:
Don’t forget to join the discussion in our Facebook group. And leave me a comment here, I’d love to hear from you.
And thanks so much for reading.