What Is Amazon Launchpad In 2022? (How It Works + FAQs)
If you‘re launching a new product as an Amazon seller, the Launchpad program can provide the boost you need to get started successfully.
Amazon Launchpad helps introduce innovative products to Amazon‘s 300 million customers through customized promotions, marketing support, and placement in high-visibility storefronts.
For entrepreneurs ready to bring a new product to market, Launchpad streamlines launching on Amazon and provides the tools to drive sales and growth.
In this comprehensive 2800+ word guide, we‘ll dive into everything sellers need to know about unlocking the benefits of Amazon Launchpad, from eligibility criteria to optimizing your strategy.
A Primer on Amazon Launchpad
Before digging into the details, let‘s start with a quick rundown of the core concepts…
What it is: A program to launch new products on Amazon with extra support
Who it‘s for: New brands and products with <$1M Amazon sales
Key benefits: Marketing, product page customization, advertising credits, performance data
Duration: 12 month minimum commitment
Cost: 5% sales referral fee premium (reduced to 3% after $1M)
So in summary, Amazon Launchpad provides the services and visibility to successfully debut new products on the marketplace. It‘s designed for startups and brands with innovative offerings that meet Amazon‘s criteria.
Now that you have the basics, let‘s explore more about how Amazon Launchpad works and what it can offer sellers.
Overview of the Launchpad Program
Amazon Launchpad debuted in 2015 as a platform to help launch new products from startup brands on Amazon.
It provides exclusive promotional services, marketing support, and account management designed to increase visibility and sales.
The core benefits sellers receive include:
- Custom product page design and content
- Free product photos and enhanced listing optimization
- Exclusive discounts and advertising credits
- Inclusion in marketing promotions and customer emails
- Feature placements in "New Releases" and other discovery areas
- Ongoing performance insights and sales reporting
- Direct support from an assigned Launchpad manager
For startups and new brands with innovative products, these resources provide a major leg up when trying to stand out and reach customers in Amazon‘s massive marketplace.
According to an Amazon spokesperson, Launchpad was created to make the process of launching faster and easier for entrepreneurs while helping customers discover new and trending products.
Through services tailored specifically to new product introductions, the program aims to enable sellers to focus on continuing to develop and market their offerings rather than navigating Amazon‘s complexities.
For consumers, it designates a go-to destination to find everything new and notable across Amazon‘s expanding product selection.
Now that we‘ve covered the core benefits, let‘s look at the specific eligibility requirements brands must meet to participate.
Amazon Launchpad Eligibility Criteria
While Launchpad provides advantages, Amazon has stringent standards for the products and sellers accepted into the program.
Products must meet the following criteria:
- Less than 3 years since initial launch – Cannot have already broadly launched
- Under $1 million in lifetime Amazon sales – Low sales threshold to qualify as "new"
- Minimum 3.5 star rating – High customer satisfaction
- 5+ product reviews – Proven customer demand and engagement
- Fulfilled by Amazon – Inventory must be stored and shipped by Amazon
In addition to these objective criteria, Amazon evaluates subjective factors when reviewing Launchpad applications including:
- Innovative or distinctive – Solves problems in fresh ways or demonstrates uniqueness
- Marketability – Relevance to Amazon customers and categories
- Startup mentality – Embodies entrepreneurial ethos over big brand mentalities
Amazon wants products that bring something novel and compelling to consumers. Crowdfunding success stories are prime Launchpad targets given their demonstrated appeal and customer validation.
Think smart home gadgets, travel accessories, kitchen tools, electronics, outdoor gear – products that attract curiosity and buzz.
These standards ensure products have indicators for possible success and are ready to benefit from expanded promotional options.
Now that you know the requirements, let‘s explore the unique benefits sellers gain access to with Amazon Launchpad.
Benefits of Joining Amazon Launchpad
Once accepted into Amazon Launchpad, sellers receive an array of services and support to help successfully introduce a new product including:
1. Dedicated Amazon Advisors
Amazon assigns Launchpad brands an Amazon employee as an advisor and point of contact.
This advisor provides coaching and guidance based on their expertise running promotions and advertising on Amazon.
Having a knowledgeable contact focused on your specific product can streamline onboarding and building an effective sales and marketing strategy.
According to Amazon, advisors aim to understand sellers‘ objectives and develop plans to meet them. They want brands to achieve their Amazon goals.
2. Customized Product Pages
Launchpad products are given improved product detail pages customized for the program.
These pages enable brands to stand out and provide more details showcasing their product‘s features and value.
Specific page upgrades may include:
- Expanded descriptions with more content
- Additional high-quality product photos and media
- Customer testimonials and reviews
- Videos demonstrating product functionality
- Detailed comparison charts vs competing products
- Links to external resources like brand website
These amplify conversions by addressing shoppers‘ questions and visualizing the benefits.
3. Product Promotions
One of the most valuable benefits of Launchpad is inclusion in various Amazon promotions.
A few examples of how Amazon may feature and market your product:
- Email campaigns sent to targeted customer segments
- Exposure onAmazon Launchpad and "New Release" pages
- Promoted posts on Amazon‘s social media channels
- Inclusion in shopping events like Prime Day and Lightning Deals
- Features in seasonal gift guides and category spotlights
- Spotlight videos to showcase new releases
This exposure helps drive awareness with relevant customers.
According to an analysis of electronics startups by Jungle Scout, email promotions through Launchpad increased average daily unit sales 109%.
These expansive marketing opportunities offer exposure hard to achieve as a new brand.
4. Discounted Advertising
Launchpad participants are given advertising credits ranging from $500 – $100,000+ based on product selection and sales potential.
Credits apply to sponsored products ads, helping reduce the cost of paid promotions to kickstart sales.
Lowering barriers to Amazon PPC allows sellers to reinvest revenue into growing their business.
5. Performance Insights
Often the biggest challenge for new products is guessing at what marketing is working.
With Amazon Launchpad, brands gain access to a proprietary online dashboard showing key performance indicators.
Metrics provided may include:
- Traffic to product pages and Amazon storefront
- Click-through rates on ads and promotions
- Orders, sales, and conversion rates
- Customer demographics
- Best selling variations and bundles
These insights identify opportunities to fine-tune listings and campaigns for improved results.
6. Premium Marketing Placement
Lastly, joining Launchpad provides brands placements in front-and-center storefronts for high visibility.
Examples include:
- Top placement on Amazon Launchpad pages
- Inclusion in "New Releases" and "Finds You Might Love" sections
- Partnerships on retailer marketing emails and sites
- Promoted social media posts and stories
- Curated gift guides and front page features
Premium real estate enables brands to get discovered by customers hungry for new and interesting products.
According to Jungle Scout, one pet product saw a 771% increase in orders during a two week placement on Amazon‘s homepage.
In aggregate, these expanded marketing and visibility opportunities help level the playing field for startups to compete with large established brands on Amazon.
Now that we‘ve covered the unique advantages, let‘s look at how Amazon Launchpad gets paid.
Amazon Launchpad Fees for Sellers
While the program opens doors, participating in Amazon Launchpad isn‘t free.
Sellers pay an incremental 5% referral fee on top of Amazon‘s standard selling fees.
So in addition to Amazon‘s base 15% referral fee for toys or 12% for books, sellers would pay an additional 5% for 20% total as a Launchpad member.
Here‘s a breakdown of how fees are calculated with an example product:
| Fee Type | Fee Rate | Calculation |
|---|---|---|
| Product Price | $50 | – |
| Standard Referral Fee | 15% | $50 * 15% = $7.50 |
| Launchpad Referral Premium | 5% | $50 * 5% = $2.50 |
| Total Fees | 20% | $7.50 + $2.50 = $10 |
So on a $50 sale, fees would be $10 (20%) rather than $7.50 (15%).
The impact of the 5% premium depends on your product‘s standard category fee:
| Category | Standard Fee | With Launchpad Premium |
|---|---|---|
| Toys | 15% | 20% |
| Jewelry | 20% | 25% |
| Grocery | 15% | 20% |
| Books | 12% | 17% |
However, once a brand exceeds $1 million in sales through Launchpad, the 5% premium is reduced to 3% for most product categories.
This discounted rate on high volume helps balance the upfront costs.
Minimum Commitment Term
There is a 12 month minimum commitment required when joining the Amazon Launchpad program.
This ensures brands stick with it long enough to leverage the full benefits and support provided.
If a seller wishes to exit Launchpad early, they must provide written notice to Amazon at least 30 days before leaving.
Transitioning Out of Launchpad
After the 12 month term completes, brands can elect to leave Launchpad by providing written notification.
Once exited, sellers lose access to the Amazon Launchpad marketing, dashboard, and advisor support.
Listings transition over to Amazon‘s standard seller platform and tools.
However, product pages created under Launchpad remain intact when transitioning out. Sellers must contact Amazon to revert to a standard page layout.
Overall, the program is designed to provide maximum support during launch and establish strong momentum. But the training wheels do come off eventually to allow brands to graduate as fully self-sufficient Amazon sellers.
Now let‘s review some of the most popular products and categories participating in Launchpad.
Top Products in Amazon Launchpad
Amazon Launchpad features products across nearly every category – from high-tech drones to wireless earbuds to unicorn pool floats.
But based on available data, these categories see particularly strong interest and acceptance:
- Electronics: Smart home gadgets, wearables, audio gear, drones
- Kitchen: Innovative cooking tools, appliances, drinkware
- Toys & Games: Educational STEM toys, outdoor games
- Home & Garden: Unusual home decor, gardening tools
- Sports & Outdoors: Camping/hiking equipment, fitness trackers
- Beauty: Skin/hair care, cosmetics, personal care appliances
- Pet Supplies: Tech-enabled toys, feeders, GPS trackers
Consumer research firm Jungle Scout analyzed over 700,000 Amazon Launchpad products to identify winning categories.
Their top performing segments aligned with the broader Amazon best sellers, showing strong demand across electronics, home goods, recreation, and consumables.
For new product sellers, these verticals present major opportunities given Amazon customers‘ desire for novelty and convenience.
Now that we‘ve covered the details of Amazon Launchpad, let‘s answer some common questions sellers have.
Amazon Launchpad FAQ
What are the key criteria to qualify for Amazon Launchpad?
To join Launchpad, your product must be under 3 years old since first launching, have <$1M lifetime Amazon sales, minimum 3.5 stars and 5+ reviews, and use FBA.
How much does it cost sellers to join Amazon Launchpad?
There is a 5% sales referral fee premium added to Amazon‘s standard category fees while enrolled in Launchpad. This drops to 3% once over $1M in sales.
What type of marketing support does Launchpad provide?
Launchpad includes custom product pages, email/social promotions, inclusion in Amazon marketing spots, discounted sponsored ads, and premium placement.
Is there a minimum term required for Amazon Launchpad?
Yes, brands commit to staying in Launchpad for an initial 12 month period. 30 days notice must be given to exit.
What happens when a seller leaves the Amazon Launchpad program?
After exiting, brands lose access to customized services and support. Listings transition over to Amazon‘s standard seller platform.
Can you join Amazon Launchpad if already selling on Amazon?
Yes, existing products under 3 years old, with less than $1M in sales, and meeting other criteria can enroll in Launchpad.
How much do the advertising credits from Launchpad cover?
Credits range from $500 to $100,000+ based on Amazon‘s forecasting of your product‘s potential sales and performance.
What type of products get accepted to Amazon Launchpad?
Amazon looks for unique, innovative products under 3 years old with strong customer satisfaction across categories like electronics, kitchenware, pets, beauty, etc.
Do you need professional product photography for Launchpad?
While high quality images are preferred, Amazon can provide free professional photography to ensure products are showcased attractively.
Conclusion
For new and startup brands, introducing a product successfully on Amazon is a challenging endeavor.
But Amazon Launchpad provides the marketing, data, and support needed to overcome these hurdles.
The program helps launch new products by amplifying visibility, increasing conversions, and accelerating sales velocity.
While meeting the eligibility criteria is critical, brands that leverage Launchpad‘s full suite of services reap the greatest rewards.
Work closely with your Launchpad advisor to optimize promotions, fine-tune your product page, and double down on what‘s working based on the data.
View the 12 month commitment as an investment in building momentum and assets to grow your business for the long-term.
Then continue applying those lessons as you graduate and chart your own course to Amazon success.
Overall, Amazon Launchpad opens the door for startups and entrepreneurs to turn their innovative products into thriving businesses.
