What Is Amazon Launchpad – Things Sellers Must Know
Navigating Amazon as a new seller can be tough, but there are tools and programs available to help.
Amazon’s Launchpad program is one such tool, designed to assist emerging brands in showcasing their products to a global audience. This program provides support and resources to help new sellers introduce their products effectively.
In this blog post, we’ll delve into the specifics of the Amazon Launchpad program to give you a comprehensive understanding of what it is and how it can help you.
What Is the Amazon Launchpad Program?
Amazon Launchpad was established in 2015 with the aim of supporting new entrepreneurs in the online market. It offers a platform for these entrepreneurs to introduce their unique and innovative products to a global customer base.
By handling tools, marketing, and the entire process from start to finish, Amazon Launchpad makes it easier for entrepreneurs to set up and run an e-commerce store on Amazon. The program provides additional features that are not available elsewhere, making it particularly appealing to startups.
Many successful brands, such as Mamaearth, Lifestraw, and Ember, have emerged through Amazon Launchpad. It’s an ideal option for sellers who are new to online selling or are in the early stages of growth.
What Are The Benefits Of Amazon Launchpad To Sellers?
Amazon Launchpad provides advantages to both small and intermediate e-commerce brands. If you offer cutting-edge products, here are some benefits that you can enjoy by being part of this program:
1. Great Customer Exposure
One of the primary reasons every emerging seller desires an Amazon presence is to access global customers.
With Amazon’s availability in over 50 countries, expanding globally becomes more achievable.
Through Launchpad, sellers are directly introduced to this vast customer base, a feat that startups struggle to achieve independently.
2. Get Personalised Launch Support
The personalized support system is a standout feature of Launchpad because new sellers often lack proper knowledge. Sellers can receive personal guidance from an Amazon support consultant at any time.
With the Amazon Launchpad program, sellers find relief. Amazon takes care of onboarding, launching, creating compelling product listings, and marketing support once a seller enrolls. It also provides useful insights and guidance for your business.
3. Increased Visibility- Offers & deals
Sellers with Amazon Launchpad enjoy several perks like the lightning deal, Banner ads, 7-day deals, and email campaigns. All these perks help brand owners to increase product visibility and get organic ranking.
4. Access To Amazon Tools
Sellers who are part of Amazon Launchpad have access to premium Amazon tools like Performance Metric Analytics, Amazon AMS, Amazon Vine, or the Launchpad brand store.
These various tools help sellers delve deeper into their business performance, obtain authentic reviews, market effectively, create a brand storefront, and communicate their brand story to customers.
5. Access To Premium A+ Content
Amazon Launchpad sellers can also access premium A+ content. However, standard A+ content is available to all registered sellers, but premium content is exclusively for Launchpad sellers with added modules.
A+ content on Amazon is a seller-central feature that enables sellers to create eye-catching and well-written product listings, enhancing the overall appearance of product listings and positively impacting visibility and gross sales.
6. FBA Availability
Amazon Launchpad sellers have the option to utilize Fulfillment by Amazon services. FBA is integral to supply chain management, allowing sellers to store their inventory in Amazon warehouses. Additionally, Amazon takes care of packaging and shipment.
Sellers who opt for FBA typically experience lower shipping costs compared to those who do not use it.
7. Amazon Launchpad Storefront
Amazon Launchpad sellers can have their own Amazon Launchpad storefront. A storefront helps the brand customize its brand page with logos, colors, etc. and provides customers with an appealing shopping impression. Moreover, storefronts help tell the brand stories and promote deals or offers.
8. Additional Placement Opportunities
Launchpad products are likely to get featured on other placements like the Amazon Launchpad category page, Amazon Launchpad new releases, or Standard new releases page. These additional unique placements which are not available for other products can significantly boost the product’s visibility.
9. Brand Gating
Launchpad products are brand-gated, and sellers do not have to worry about unauthorized selling as it prevents unauthorized sellers from reselling your products.
10. Amazon Creative Services Team
Launchpad members get access to the Amazon imaging services team, which helps in high-quality product photography, editing, and optimization.
Who is Eligible for Amazon Launchpad?
Amazon Launchpad is open to all new entrepreneurs; however, Amazon sellers must meet certain criteria to be eligible to apply. These criteria include:
- The seller must be associated with FBA.
- The products must have 5-star reviews.
- The products must have a 3.5-star rating or above.
These criteria provide users with ease while browsing Amazon Launchpad products. Additionally, climate-pledge-friendly certified products and certified black-owned businesses can also apply.
Moreover, existing sellers must be enrolled in the brand registry for no more than 4 years and should have gross merchandise sales of less than $10 million in Amazon’s online store annually.
In Which Marketplaces Is Amazon Launchpad Available?
Amazon Launchpad is available in selective marketplaces, including the USA, United Kingdom, Germany, France, Italy, Spain, Japan, India, Australia, and Canada. Currently, only these marketplaces can leverage Amazon Launchpad, but Amazon might expand Launchpad to other marketplaces in the future.
How to Enroll in the Amazon Launchpad Program?
To join Amazon Launchpad, Visit the Amazon Launchpad website and locate the “Apply to Launchpad” option. Choosing this option will bring up an application form requesting all the necessary details of your product/business.
Once you complete the form, submit it and await approval. Generally, it takes 7 to 10 days for an application to be approved for the Amazon marketplace.
Before and after enrolling in the Launchpad program, sellers need to pay attention to:
1. Product Preparation
Amazon Launchpad seeks quality and unique products. While preparing to launch, ensure thorough checking of inventory, shipment services, description, pricing, product listing, etc.
2. Packaging Quality
While emphasis is often placed on the product itself, sellers must not overlook the crucial role packaging plays in generating sales. Appealing packaging can attract customers and enhance performance during the product launch phase.
3. Understanding Commitment Criteria
Before enrolling, thoroughly read and understand the commitment terms with Amazon Launchpad. A Launchpad member must commit for at least 12 months regardless of sales performance.
Additionally, they can choose to commit to Amazon Launchpad indefinitely or transition from Launchpad to standard selling mode at any time. However, sales performance matters in this context.
How Much Does Amazon Launchpad Cost?
The Launchpad program comes with standard referral fees of 15%, with an additional 5% premium applied per sale.
If your sales in a 12-month period exceed $1 million, Amazon reduces the 5% premium to 3%.
These costs are in addition to other expenses such as FBA fees, seller plans, or additional services like product photography and marketing support.
Overall, Launchpad costs can vary depending on the number of features you require.
Drawbacks of Amazon Launchpad
One of the major drawbacks of Launchpad is the minimum 12-month commitment. Sellers must commit to the program for 12 months, even if it doesn’t work in their favor, meaning they will have to pay a 5% premium on all sales during this period.
Additionally, attempting to leave before the committed time may result in a penalty.
Moreover, many sellers claim that Launchpad is biased, as Amazon prioritizes brands that already have working relations with crowdfunding sites like Kickstarter, Indigogo, etc.
Launchpad also has longer payment cycles compared to FBA, with payment cycles lasting two months.
Furthermore, Launchpad enrollment is comparatively more expensive than selling on Amazon directly.
How is Amazon Launchpad Different From Accelerator?
Amazon Launchpad is helpful for startups and new entrepreneurs with innovative products, providing A to Z launch assistance.
On the other hand, Accelerator is designed to assist private-label businesses, focusing specifically on helping private-label brands grow their products through partnership with Amazon.
Amazon Accelerator is more suitable for existing brands and those looking to expand their product lines but require assistance with tools, advertising, production, and other aspects. It is particularly beneficial for brands aiming to establish a comprehensive brand identity on Amazon.
Upon closer examination of their features, both Launchpad and Accelerator excel at promoting talented startups and providing marketing assistance. However, they differ in the following aspects:
In the Accelerator program, Amazon exercises full control over branding and supply chain, unlike Launchpad.
Furthermore, Accelerator members do not have access to brand gating and are restricted from selling on platforms other than Amazon. Unlike Launchpad, Amazon reserves the right to terminate participation in the Accelerator program if no benefits are accrued.
Wrapping Up
In summary, Amazon Launchpad is a valuable resource for new entrepreneurs and startups. It provides practical support and access to a wide audience, helping sellers bring their products to market successfully. With personalized guidance, promotional opportunities, and useful tools, Launchpad gives sellers the tools they need to thrive online.
Whether you’re just starting out or looking to expand your brand, Launchpad offers a platform for growth and success. Take advantage of Launchpad to realize your entrepreneurial dreams and reach your goals in the online marketplace.
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