New Product Development (NPD) is the process of introducing a new product to market. However, it can be difficult to get a real feel for how successful your product will be online when it is tested in a vacuum. At Molzi, we believe that Amazon is the perfect place to try out new product development as it allows a brand to test their products in a real-world environment with very little risk when done correctly. Read on to find 6 reasons why Amazon may be the perfect platform for you to test your NPD with!
1. Amazon’s popularity
Amazon is the most popular online marketplace in both the US and UK with 90% of UK and 92% of US consumers deciding shop on Amazon. What does that mean for your brand? When testing your new products on Amazon you benefit from this popular platform, receiving a massive research sample in real time. If you wanted to you could also use Amazon’s traffic to test, not only in one country but across multiple marketplaces, helping you launch a product globally. In this sense, Amazon could not only help you define what your target audience likes but determine how to break into new global markets and sell internationally.
2. Large amount of competition
At first, competition for a new product may seem like a bad idea. However, competition for new product testing can work to your benefit! By testing on a platform with so much competition, you will gain valuable insights. For example, the knowledge of knowing who your main competitors are, the best price to sell your product and determining any niche markets that may have been missed by competitors puts your new product at an advantage when you’re ready to launch. By gaining any additional knowledge of the marketplace allows you to strengthen your unique selling points, filling in any gaps in the market.
3. Understanding your customers
Amazon is a customer-focused marketplace. What does that mean? As an Amazon seller or vendor you always have to consider the consumer first. This benefits brands as it means that they must maximise customer experience over everything else. This viewpoint is what makes Amazon a great testing platform as new product development is all about finding out what your customers want. By knowing how best to engage your customers you will get a wider understanding of your target market. Plus, you may be able to build some brand loyalty from your new product testing so when you do launch you will already have customers ready to convert.
4. Saving you time and money
When you are ready to launch your new product on Amazon you will already have done the hard bit! In order to test your product(s) on Amazon you will be required to set-up your ASINs, ensure the retail readiness and create product awareness. If your new product testing is successful on Amazon when it comes time to fully-launch your product on the marketplace you will be one-step ahead, saving time and money on set-up.
5. Access to helpful data
By testing NPD on Amazon you will have automatic access to analytics via Seller Central. The sales dashboard will be most helpful in determining many things. For example, whether you have a good pricing strategy, how your new product holds up compared to your other ASINs and how successful your advertising efforts are. All of which are key metrics to help your brand in determining the success of your new product in the future. The Amazon Selling Coach will also help give you recommendations as to how to better improve your NPD performance from matching low prices to FBA opportunities.
6. Drive the most conversions
By using your Amazon Store page, you can test sending social media traffic to your Amazon NPD and monitor conversions and compare that to your own ecommerce website. By doing this you can determine the best way to market your products based on the conversion results. By testing your marketing when you launch you will have a better view of where your target demographic is shopping or how they shop. This way, when you decide to launch officially, you will be able to have a marketing strategy in place regarding where to advertise to your target demographic.
Want to test a new product on Amazon?
Launching a new product online is heavy stuff and brands shouldn’t be doing it lightly. NPD requires brands taking calculated risks, number-crunching and most importantly, time to strategically examine the results. Our data team have plenty of experience understanding all of Amazon’s reports and have gone so far to create an internal dashboard, making convoluted stats a thing of the past. Moreover, with our NPD support services readily available we can ensure that your product testing is as efficient as possible on Amazon. If you need help with bringing a new product to market, or NPD testing on Amazon, contact us and we will help provide you with a strategy that works for your product category and sales goals.