Every Amazon business wants to be successful enough to expand its brand. But how can you effectively introduce new Amazon categories and products without risking too much time and money? Here’s everything you need to know about adding new products to your Amazon store.
Pros and Cons of Adding New Products to Your Amazon Business
The success or failure of launching new products in a new category comes down to preparation, and part of that preparation is deciding if you should do it in the first place. So, to help you make that decision, let’s look at some pros and cons of venturing into new product categories.
- Attracts new target markets: Every product has an ideal customer, and an anti-customer (someone who will never be happy with the product). When you branch out into new product categories, you begin offering value to markets that might never have been your customer otherwise. It’s also possible you’ll be able to cross-sell customers from either market with products from the other category (see below).
- Creates complementary products. New products don’t have to fall into a completely different category. Complementary products can entice repeat customers and attract new ones at the same time. For example, if you primarily sell water bottles, you could also sell water bladders, backpacks, and other accessories that can be used alongside your water bottles.
- Increases sales and revenue. Perhaps the most obvious potential benefit, offering more products can lead to increased revenue. Established brands often benefit from increased product offerings. These companies likely captured a large share of the market, so adding a new product is the best way to find new customers.
- Makes brand building difficult. Many companies use their products as a foundation to start building their brand identity. For example, a company that sells specialty bar soaps may leverage its eye-catching brand packaging and unique scents to fit a certain demographic or role in its market. Companies that don’t have a focused product strategy may have a harder time benefiting from this brand strategy.
- Strains your inventory fulfillment. Adding new products into your inventory will naturally add strain to your fulfillment services. For starters, different packaging needs for new products might reduce productivity as fulfillment employees will need to learn new packaging standards and techniques.
- Competes with established brands. You’ll probably run into trouble if you add a product that is in direct competition with another, well-established brand. That brand’s significant market share can slow growth of your customer base, and as a result, revenues.
How to Find Products to Sell on Amazon
Before you can even strategize how to introduce a new product in Amazon categories, you first need to have a new product in mind. But how do you find products to sell on Amazon that are more likely to sell well? If you want to diversify your inventory, here are four things to look for.
- Low seasonality. It should be a product people want to buy at all times of the year.
- Cheap to ship. Items that are lightweight and generally small enough to fit in a shoebox tend to sell better.
- Easy to manufacture or order. Whether it’s something you want to create yourself or order in bulk, it should be a streamlined process that doesn’t cost you much time or resources.
- Can be improved upon. To really offer something unique, you can add your own improvement to a product that already sells well. You can figure out how to improve the product by looking at its reviews and for constructive customer feedback.
Expand Your Brand with Buy Box Experts
Growing pains are a guarantee with any business expansion, but Buy Box Experts can alleviate a lot of that pain. You can contact our professional teams at any time to get assistance with promoting your new products or managing your business’s growth.
To get started, sign up for our free brand analysis to find out what you can do to get better results on Amazon.