Ultimate Amazon Product Launch Strategy

12 September 2024
Ben Mathew

The Ultimate Amazon Product Launch Strategy: Insights from Matt Altman

1. Introduction

In this recent podcast interview on the Ecom Breakthrough, Matt reveals deep insights from product launches and PPC management to product optimization-everything from growing brands from zero to $3 million per month in sales. It goes from software tools to crafty cash-flow hacks; Matt pulls the curtain back and shows nuts and bolts of exactly how sellers really scale their businesses and avoid common pitfalls.

2. Matt Altman’s Background and E-commerce Journey

Matt Altman began his e-commerce journey over a decade ago with retail arbitrage, buying clearance items from retailers like Walmart and Target to resell online. Seeing an opportunity for more control, he transitioned into private label products. However, as Amazon competition intensified, particularly from foreign sellers using black-hat tactics, Matt decided to pivot.

“Your subscribe and saves aren't massive, but I mean back then in supplements margins were absolutely insane,” Matt said when reflecting on his move into the space.

3. Key Factors for a Successful Amazon Product Launch

Matt stresses the importance of setting aside a substantial budget, starting from $50,000 to $75,000 for competitive spaces like supplements. He advises sellers to overestimate by 20-30% to accommodate any unexpected challenges during the launch phase.

Product Opportunity Analysis Using Amazon Tools: Matt emphasizes the critical role of Amazon’s built-in tools for product research and opportunity analysis. He frequently uses Amazon Search Query Performance Reports and Product Opportunity Explorer to find growing niches and assess the demand. These tools help him identify emerging categories and assess whether there’s room for new players in the space.

“Amazon's making that way easier now with like the search query reports, the product opportunity explorer... you can really easily find that," said Matt during the podcast.

Choosing the Right Product Categories: Matt advises sellers to focus on categories that have a few established leaders but still show room for growth. He looks for spaces where there are 3-4 top players who are doing well but aren't dominating the market to the point of crowding out new sellers. This approach allows him to enter competitive spaces with a solid chance of success.

“The other big thing that we're looking for is categories that you've got maybe like three or four power players in... really it just kind of is showing us that hey, there are enough sales to go around,” Matt explains.

4. PPC Strategy for Product Launch: Focus on Conversion Rates, Not ACoS

One of the biggest misconceptions sellers have when launching a product is focusing too heavily on Advertising Cost of Sales (ACoS). According to Matt, conversion rates should be the primary metric to track, especially in the early stages of a product launch. He advises launching products by targeting specific keywords and optimizing campaigns based on conversion data.

"We don't worry about ACoS, we don't worry about tacos, we don't worry about anything except for our conversion rate," Matt states.

Running Exact Match and ASIN Targeting Campaigns:

During the first 30 to 40 days of a product launch, Matt sets up two core PPC campaigns:

  1. Exact Match Campaigns - These campaigns are laser-focused on the top-performing keywords for the product. He starts with suggested bids from Amazon and then applies a 300% Top of Search modifier to gain prominent placement.
    "We set up exact match campaigns, set the bid at the suggested bid from Amazon, and put in a 300% top of search modifier."

  2. ASIN Targeting Campaigns - Here, Matt targets specific ASINs (products) that have historically ranked well for the keywords he’s aiming to dominate. By targeting these products, he ensures that his new product gains visibility with buyers who are already interested in similar items.
    “We target any ASIN that's ever been in the top three for the five to seven keywords that we're going after.”

Daily Adjustments Based on Data:

Matt uses Pacvue to make data-driven adjustments every 2-3 days during the launch phase. The key metric he looks at is conversion rate relative to competitors. If his product’s conversion rate is within two percentage points of the top competitors, he continues spending on that keyword. If not, he decreases the bid.

“We're pulling out that data and then we're comparing our conversion rates on keywords by the brand analytics data day by day.”

Tools Used:

5. Product Optimization: Fine-Tuning Your Listing for Maximum Conversions

Once the product is live and the PPC campaigns are running, Matt shifts his focus to product optimization. He particularly emphasizes the importance of main images, which he identifies as one of the most critical elements in improving conversion rates.

"Your primary image is the key to getting click-throughs, and sometimes it's the only thing people are going to see before deciding."

Main Image Testing:

Matt’s strategy for improving click-through rates starts with testing different variations of the main image. One technique he uses is adding elements like callouts or packaging tweaks, even if they aren’t physically present on the actual product.

"We'll change the way the box looks or we'll add something over the wrapper... we've found that a lot of times just by changing the image, it makes a significant difference in click-through rate."

Tools for Image Optimization:

Matt uses testing platforms like PickFu or the newer tool Intellivy to run split tests on main images. These tools allow him to simulate Amazon search results and get real-time feedback from potential buyers, helping him understand which images perform best.

"We've been testing using Intellivy. It allows you to test your image in simulated Amazon search results with your competitors."

Secondary Images and Mobile Optimization:

Matt also advises paying attention to the second and third images, especially with Amazon’s frequent testing of features like hover-overs and autoplay video. However, he notes that secondary images are less critical than the primary image in the initial phases of a launch.

"Amazon's always testing out stuff... but we really focus mainly on that primary image more than anything."

Tools Used:

6. Price Testing and Cash Flow Hacks

Matt also highlights the importance of price optimization during a product launch. He uses Eva Guru to test different price points dynamically. Eva Guru allows sellers to set pricing rules that adjust automatically based on sales velocity and competitor pricing.

“Eva Guru has some of the smartest repricing software out there, where you can increase your price by a percentage every few days and monitor how it affects sales.”

Ninja Cash Flow Hacks:

One of the standout moments of the podcast was Matt’s "ninja cash flow hack," where he shared how he extends the time to pay off ad spend by using credit cards strategically. Matt recommends using the American Express Gold Card for ad spend due to its high rewards. He then pays off the Gold Card using the Plum Card, which gives 60 additional days to make payments without incurring interest.

"We're looking at like 90 to 120 days on average is when we're actually paying those ad bills without taking any loans."

This cash flow strategy gives Amazon sellers more time to recoup revenue from sales before needing to pay off their advertising costs, making it a highly effective tool for managing large-scale launches.

Tools Used:

7. Maximizing Customer Lifetime Value (LTV) Through Retargeting and Subscription Models

Matt emphasizes the importance of customer lifetime value (LTV) in ensuring long-term profitability, especially in highly competitive niches like supplements. Instead of solely focusing on acquiring one-time customers, Matt’s strategy is built around maximizing repeat purchases through Subscribe & Save and other retargeting tactics.

“We were acquiring people at a loss initially, but our repeat purchase rate was over 40%, and we saw that number growing each month.”

Using Data to Inform LTV Strategy:

Matt’s agency uses a combination of Amazon’s Search Query Report and Ecom Analytics to gather insights on buyer behavior and forecast future purchases. These tools allow him to track how many new subscribers they are gaining each month and their buying patterns. This data drives decisions about how much to spend on customer acquisition.

“We use the Search Query Report to figure out organic sales, ad sales, and the repeat purchase rate, which then informs how much we can spend to acquire new customers.”

Building a Subscription Base:

In the supplement space, repeat purchases are essential for maintaining growth. Matt shared how his team was able to grow a brand from $10,000 in monthly sales to $5.7 million, primarily by acquiring thousands of Subscribe & Save customers.

“We’re acquiring around 12,000 new subscribers a month, with over $1.5 million in monthly recurring revenue from Subscribe & Save.”

Tools Used:

8. Leveraging Amazon Affiliates for Traffic Boosts and SEO

One of the most exciting areas Matt touched on was the use of Amazon affiliates to drive external traffic and boost rankings. With Refersion and the Brand Referral Bonus, Matt is able to incentivize affiliates to send traffic to Amazon listings, which not only drives direct sales but also improves organic ranking through external traffic.

“We’ve started using Refersion, which lets us pay affiliates through the Brand Referral Bonus and track their performance. Affiliates have been a game-changer in boosting our keyword rankings.”

SEO Benefits of External Traffic:

By working with affiliates and influencers, Matt was able to dramatically improve a product’s organic ranking for over 70 keywords within a week. The key to this strategy is sending consistent external traffic to Amazon, which Amazon’s algorithm rewards with higher organic rankings.

“Our keywords in the top 10 for our main product went from 71 to 145 just from one affiliate campaign, and it had a search volume of over 1.2 million.”

Matt recommends using SEMrush to track backlinks and external traffic sources. In one of his due diligence processes, he discovered a brand was driving 80,000 monthly visits to their Amazon listing through Google alone, largely thanks to affiliate backlinks.

Tools Used:

9. When to Cut an Underperforming Product: Key Metrics to Watch

Launching new products aggressively is a core component of Matt’s strategy, but equally important is knowing when to pull the plug on a product that isn’t performing. He sets clear metrics for killing a product within three months if it doesn’t meet certain performance standards.

“If after 90 days we’re not seeing the right traction or if we’re not hitting the $100,000 per month mark, we kill the product and move on.”

User Feedback as a Critical Metric:

Matt also places significant emphasis on user feedback. He shared a story about launching a keto gummy that was doing 2,000 units a day across three flavors. However, after receiving consistent negative feedback about the product’s texture, Matt made the decision to pull the product from the market and reformulate it, even though it meant losing $300,000 in the short term.

“We killed the product after three months because of customer complaints. Even though it was selling well, it would have hurt the brand in the long term.”

Formulating New Products:

Matt highlights the need to constantly iterate on product formulations and designs, especially in competitive spaces like food and supplements. Reformulating a product that received negative feedback, even after achieving high initial sales, helps ensure long-term brand loyalty and protects the overall brand image.

Tools Used:

10. Long-Term Strategy: Building a Brand That Outlasts Competitors

The final takeaway from Matt’s product launch strategy is that branding is essential for long-term success on Amazon. Gone are the days of simply slapping a logo on a generic product and hoping for sales. Today, Amazon favors real brands that continuously innovate, launch new products, and invest in creating customer loyalty.

“Amazon is turning more into a brand-dominated space, and you have to build an audience and continuously grow. That costs money, but it’s how you create a lasting impact.”

Continuous Product Launches:

Matt encourages sellers to launch multiple products a month to stay ahead of competitors and to gain favor with Amazon’s algorithm. His team aims to launch 4-5 new products every month, and they’re quick to kill those that don’t meet performance expectations. This constant cycle of launching and refining helps keep the brand relevant and at the top of its category.

“We found that launching new products gives a tremendous bump to all of our old products.”

Expanding Beyond Your Niche:

One advanced strategy Matt discusses is launching products outside of your main category to diversify your traffic and sales. For example, if you’re selling gardening equipment, instead of adding another hose to your product line, consider launching a related product like gardening gloves or kneeling pads to capture new search traffic that doesn’t overlap with your existing keywords.

“By diversifying into different products that don’t overlap keyword traffic, you create new channels of traffic for your existing products.”

Conclusion

Launching a product on Amazon in 2024 requires a sophisticated approach that balances PPC optimization, conversion tracking, customer feedback, and branding. Matt Altman’s strategy, backed by years of experience and successful exits, highlights the importance of investing in data-driven tools like Pacvue, Eva Guru, and Refersion, while also focusing on long-term growth through repeat purchases and smart cash flow management. By following these strategies, Amazon sellers can not only maximize the success of their product launches but also build a brand that lasts.

Key Tools Mentioned:

If you need personalized guidance or help fine-tuning your strategies, Superfuel AI can assist. Our AI-powered assistant analyzes 36+ key Amazon metrics to identify and address the root causes of sales fluctuations, helping you optimize your storefront and boost sales. Reach out to us at [email protected].

--

Ben Mathew, Amazon Expert

Ben Mathew is a co-founder at Superfuel, a sales assistant for Amazon sellers. In the past, Ben and his team of e-commerce specialists and software engineers have launched 40+ new brands on Amazon, taking them from zero to bestsellers. In his free time, he is either learning from other top sellers or encouraging his 3 daughters in their love for reading. He is reachable at ben [at] superfuel.io.