Solved: Amazon Launch Strategy for a Low-Priced Grocery Product

Hi there,

Thanks for getting in touch! I'm happy to give you some initial thoughts and guidance on launching your groceries product on Amazon. It sounds like you've already got a good foundation with the "Lowest Price" badge, which is a solid starting point.

We'll need to look at your PPC campaign structure...

First off, let's tackle your PPC campaign structure. Given that you're in the launch phase, I'd strongly recommend starting with automatic campaigns. The beauty of automatic campaigns is that they let Amazon's algorithm do the heavy lifting in identifying relevant keywords and search terms. This is pure gold when you're still trying to figure out what resonates with your target audience.

Let the automatic campaigns run for about a week or so. This gives them enough time to gather sufficient data. Then, analyse the search term report to see which keywords are driving the most sales and conversions. This information is going to be really useful in informing your manual campaigns. You can then use these high-performing keywords to create targeted manual campaigns with precise match types (broad, phrase, exact) to really hone in on the most valuable traffic. Starting with automatic and transitioning to manual is a pretty standard practice, but it's effective.

One thing I'd say is to keep a close eye on your budget during the automatic phase. Set a daily budget that you're comfortable with, and make sure to monitor the campaign's performance regularly. You don't want to burn through your entire budget before you've even had a chance to optimise things.

I'd say you should use coupons...

Regarding coupons and promos, I'm a big fan of using them strategically, especially during a product launch. Since your product already has the "Lowest Price" badge, adding a coupon on top of that makes it even more attractive to potential customers. It creates a sense of urgency and encourages people to make a purchase. It's basically making you an even more obvious choice.

When setting up a coupon, make sure it's substantial enough to entice customers, but also keep an eye on your margins. You don't want to end up losing money on each sale. A good rule of thumb is to start with a coupon that offers around 5-10% off the regular price. You can always adjust it later based on the campaign's performance.

Amazon also offers other promotional tools, such as "Buy One Get One" (BOGO) deals or percentage-off discounts for purchasing multiple items. These can be effective in driving up the average order value and encouraging repeat purchases. Experiment with different types of promos to see what works best for your product and target audience.

You probably should be thinking about grocery-specific tips...

Now, let's dive into some category-specific tips for groceries. One of the most important things to remember is that groceries is all about repeat purchases. People tend to stick with brands and products they know and trust, so your goal should be to get customers to try your product once and then keep coming back for more. This is a real important one.

One way to encourage repeat purchases is to include a discount code in the packaging for their next order. This gives them an incentive to buy from you again. You could also offer a "subscribe and save" option if you can manage it. This allows customers to automatically receive your product on a regular basis, which is a great way to build customer loyalty and generate recurring revenue.

Another thing to consider is the seasonality of grocery products. Certain items tend to be more popular during specific times of the year, so you might want to adjust your PPC campaigns and promotional strategies accordingly. For example, if you're selling a product that's popular during the summer, you'd want to ramp up your advertising efforts leading up to and during the summer months.

You'll need to think about price wars...

Price wars can be a real pain in the bum, especially when you're already the cheapest product on the market. It's tempting to just keep lowering your price to undercut the competition, but that's a race to the bottom that nobody wins. Instead, focus on highlighting your product's value and differentiating it from the competition.

What makes your product special? Is it the quality of the ingredients? Is it made with sustainable practices? Does it have a unique flavour or texture? These are all things that you can highlight in your product listings and advertising copy to justify a slightly higher price point. I know you've got the lowest price badge, but you still have to sell the product, right?

You can also try bundling your product with other complementary items to create a unique offering that customers can't find anywhere else. For example, if you're selling coffee beans, you could bundle them with a coffee grinder or a set of mugs. This not only increases the value of your product but also makes it more difficult for competitors to directly compare prices.

I've detailed my main recommendations for you below:

Launching a product on Amazon can feel like a proper endevour. We've helped a lot of clients in similar situations, and we understand the challenges you're facing. For example, I remember one eCommerce client that was launching a subscription box and we achieved a 1000% Return On Ad Spend for them using Meta Ads. If you'd like to delve into this further and explore how we can help you develop a really effective strategy for your groceries product launch, don't hesitate to book a free consultation. We can review your current approach and provide tailored recommendations based on your specific needs and goals.

Hope this helps, and best of luck with your launch!

Regards, Team @ Lukas Holschuh