How to Launch a New Product on Amazon in 2024

Before launching a new product, thorough market research is essential. This step can make or break your success on Amazon, so it's worth investing the time and effort. 

• Check Amazon's Restricted Products List: The first thing you need to do is ensure your product complies with Amazon’s guidelines. Some products are restricted or require special approval to sell. Familiarize yourself with Amazon’s restricted products list to avoid any issues down the line.
• Consider Private Labeling: Private labeling allows you to create your own brand with existing products. This can be a cost-effective way to launch a new product without the need for extensive product development. Look for products that can be easily rebranded and have a proven sales track record.
• Analyze the Competition: Understanding your competition is crucial. Look at similar products already available on Amazon. Examine their pricing, customer reviews, and overall market presence. Identify what they’re doing well and where there might be gaps or opportunities for your product.
• Focus on High Demand, Low Saturation Products: Use tools like Amazon’s Best Sellers and Movers & Shakers lists to identify trending products. Also, consider the barriers to entry—products that are easy to source, store, and ship are typically less risky and more profitable.

• Identify Keywords and Trends: Use keyword research tools to find out what potential customers are searching for. This will help you understand demand and identify popular trends. Look for keywords with high search volume and relatively low competition to give your product the best chance of being discovered.
• Evaluate Supplier Options: Having reliable suppliers is key to maintaining product quality and inventory levels. Research potential suppliers, compare prices, and request samples to ensure they meet your standards. Establishing good relationships with suppliers can also lead to better terms and support as your business grows.
• Understand Your Target Audience: Know who your ideal customer is. What are their needs, preferences, and pain points? Tailoring your product and marketing strategy to your target audience can significantly increase your chances of success.

Amazon offers two selling plans: Individual and Professional. The Individual plan is great if you’re just starting out and plan to sell fewer than 40 items per month. The Professional plan, on the other hand, is ideal if you’re looking to scale quickly, as it offers more tools and benefits for a monthly subscription fee.

Gather Required Information

Before you sign up, make sure you have all the necessary information handy:

• Bank Account and Routing Number: For receiving payments from your sales.
• Internationally Chargeable Credit Card: This is used to pay for any fees associated with your account.
• Government-Issued ID: To verify your identity.
• Tax Information: Ensure you have your tax ID or Social Security number ready.
• Phone Number: For account verification and communication.

Understand the Fees

Selling on Amazon comes with various fees that you should be aware of:

• Subscription Fees: The Professional Plan costs $39.99 per month, while the Individual Plan charges $0.99 per item sold.
• Selling Fees: These include referral fees, which are a percentage of the total transaction and vary by category.
• Seller-Fulfilled Shipping Fees: If you handle your own shipping, you’ll need to account for these costs. 
• FBA Fees: If you choose to use Amazon’s FBA service, you’ll need to cover fees for inventory storage, order handling, picking and packing, shipping, and customer service.

• Fulfillment by Amazon: Leverage Amazon's extensive fulfillment network for storage, shipping, and customer service.
• Fulfilled by Merchant: Handle storage and shipping yourself, with shipping rates set by Amazon based on product category and customer-selected shipping service.