Hard to believe it’s been 8 years since Amazon announced Launchpad a custom program that helps start-ups “launch, market and distribute” new products on Amazon. What is amazon launchpad? The program is really a re-skinned version of Amazon’s Vendor Express, but it’s goal is to let smaller manufacturers sell directly to Amazon. The reason for the re-branding? Simple – it’s cooler and let’s them position it as an option for business that were funded by Kickstarter, Circle up, or just an old fashion invention.
Their pitch is that you get to tap into Amazon’s massive presence to quickly build your brand leveraging their platform to grow. They are correct – Amazon is the largest online retailer with over 1.4 billion sessions last Christmas. A recent Forrester survey noted that 50% of American’s search for product on Amazon regardless of whether or not they’re going to buy on the site.
Any Company needs a presence there and Amazon is positioning Launchpad as the way to do it for start-ups. But is it worth it? The program has changed dramatically since it’s original version. Here’s the latest details you need to know about:
- No longer selling to Amazon at wholesale
- You must set up your own 3P marketplace account.
- The program is Invite only now. You must be invited by Amazon or recommended by an Amazon agency partner like Yeoman.
- If you’re accepted you get a dedicated Amazon rep for a year, plus access to some internal data on users that other sellers don’t see.
- Plus you’re typically featured (for free) whenever they have a start-up type of event.
The shift away from Launchpad as a 1P/wholesale is actually a good thing. An Amazon marketplace account (3P) gives you
- Direct control over your pricing – critical if you’re building up a retail channel
- A set 15-17% fee to Amazon (plus shipping costs)
- One of the most affordable and efficient logistic systems in the world
- Amazon buyers still get free 2 day shipping direct from Amazon’s warehouse
- You still get access to product ads, but not necessarily brand pages. You spend exactly what you want, where you want it.
If you’re a larger manufacture, Yeoman recommended both as part of your overall plan in addition to fully investing in Amazon marketing programs. When you combine merchant and vendor relationships you fully leverage the amazing selling engine that Amazon has created.
Read more about the how to succeed on Amazon.
Contact us today if you’re interested in implementing a better Amazon plan.