What is Amazon Launchpad?
Amazon Launchpad is a specialized platform nestled within the vast ecosystem of Amazon's marketplace, designed exclusively to spotlight innovative products emanating from carefully selected startups. This platform fosters a mutualistic relationship between consumers and startups. For the former, it unlocks a treasure trove of cutting-edge products while the latter gain exposure to a broad customer base and comprehensive support from Amazon in onboarding, marketing, and brand development. This blog post aims to offer a detailed exploration of Amazon Launchpad, including its function, requirements, and operational mechanisms. We will also shed light on the path to becoming a part of this initiative, the associated investment, and the specific guidelines governing the types of products that can be marketed through this platform.
Amazon Launchpad accords precedence to businesses backed by crowdfunding platforms, venture capital firms, and other startup accelerators. However, businesses boasting a unique, innovative product are also eligible to apply for the program. It is crucial to note that participation in the Amazon Launchpad program entails certain costs and necessitates prior approval.
Embarking on the Amazon Launchpad Journey
To initiate your journey with the Amazon Launchpad Program, visit the dedicated Amazon Launchpad Program webpage and fill out the registration form, providing an exhaustive account of your company and business dynamics. Once you submit your application, Amazon will review the information and subsequently respond with an approval or rejection.
Unpacking the Advantages of Amazon Launchpad
In addition to the standard Seller Central tools, Amazon Launchpad presents an array of exclusive advantages:
Sponsored Product Advisors: They provide invaluable guidance on Amazon's advertising tools, helping you set up effective PPC campaigns, and imparting understanding about the role of Amazon SEO and the A10 Algorithm.
Amazon Consultants: They serve as invaluable guides, navigating you through the marketplace operations, imparting knowledge about Amazon's processes, and assisting you in sidestepping potential business pitfalls.
Expanded A+ Content: While all registered brands have access to basic Amazon A+ content, premium A+ content is usually the privilege of premium sellers. However, participants of the Launchpad program are also granted this exclusive feature.
Email Newsletters: Amazon will include your product in their promotional email newsletters, ensuring your product reaches your potential target audience.
Business Insight Reports: This tool offers a wealth of market intelligence reports, providing the ability to review product metrics and assess sales trends.
Extra Product Placements: Participants are granted the opportunity to feature their products on the Amazon Launchpad category page, Amazon Launchpad new releases page, and the standard new releases page, thereby heightening visibility and brand recognition.
Propositional Campaigns: If your product aligns with a category within Amazon's marketing campaign, it stands a chance to be featured on a dedicated promotional page.
Assessing Eligibility for Amazon Launchpad
Any seller or brand owner offering a product registered in the Amazon Brand Registry program is eligible to apply for participation in the Launchpad Program. Applicants should be considered a new entrant:
You must have introduced your first product less than three years ago and with your brand’s trailing 12-month gross merchandise sales not exceeding $5 million. You must also be the brand owner.
Once accepted into the program, you must:
Ensure your account is in commendable standing: Amazon defines this as having a professional selling plan and maintaining an Order Defect Rate of 1% or less, Cancellation Rate of 2.5% or less, and Late Shipment Rate of 4% or less.
NOTE: Rate requirements are the same for Amazon Exclusives
Use Fulfillment by Amazon (FBA) or Seller Fulfilled Prime (SFP) to meet customer orders.
Criteria for Amazon Launchpad Products
The principal requirement for a Launchpad product is that it should offer an innovative appeal to technologically advanced consumers. The most sought-after categories include clothing items, electronic items, toys, accessories, sport items, health items, personal care items, kitchen items, outdoor items, grocery items, and other around the house items. Your product should offer a fresh solution or provide a unique angle to a problem. Crowdfunding sites can offer a plethora of Launchpad product ideas.
Investment for Amazon Launchpad Participation
Upon securing a place in the Launchpad Program, a 5% premium is levied on the Referral Fees mentioned in the Selling on Amazon Fee Schedule. These fees are applied at the account level. If your trailing 12-month gross merchandise sales cross the $1 million threshold during your program participation, Amazon may reduce your 5% premium to 3% starting from the subsequent month and maintain this reduced rate as long as your trailing 12-month sales continue to exceed $1 million. After a 12-month period, you can opt to terminate your program subscription by providing a 30-day advanced notice. Concurrently, Amazon also reserves the right to cease your participation if they find your adherence to their criteria unsatisfactory.
The Amazon Launchpad Program is a game-changing platform that catalyzes the growth trajectory of innovative startups and facilitates an enriched shopping experience for consumers on the lookout for the latest products. By offering unparalleled visibility, strategic marketing support, and a bevy of exclusive features, it presents an invaluable opportunity for startups to penetrate the extensive customer base of Amazon and establish their unique brand identity. While participation in this program entails a cost and necessitates meeting certain criteria, the comprehensive benefits it provides far outweigh the investment. Therefore, sellers aspiring to scale their businesses and align with the dynamic consumer trends should consider applying to this program to harness its potential for sustainable growth. Best of luck using Amazon Launchpad!
Thank you,
Commerce Canal Team
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