What is Amazon Launchpad? A Comprehensive Guide for Startups

A common thread that binds nearly every entrepreneur or startup founder is the desire to find innovative opportunities for growth and the potential to reach new customers.

One platform that has gained significant attention in recent years is Amazon Launchpad.

But is it worth it?

In this article, we’ll explore everything there is to know about Amazon Launchpad and how it can benefit startups, helping you to decide whether it’s the right platform to expand your business.

What is Amazon Launchpad?

Amazon Launchpad is a program developed by Amazon to help entrepreneurs and startups bring innovative new products to market.

Unveiled in 2015 as a partnership between Amazon and leading crowdfunding platforms, startup accelerators, and venture capitalists, Launchpad brings innovative, cutting-edge products to the Amazon marketplace by promoting talented entrepreneurs and startups.

It provides a platform for businesses to showcase their products to millions of potential customers through Amazon. By leveraging the credibility and reach of the powerhouse that is Amazon, startups can gain significant exposure and grow their customer base.

One of Launchpad’s key advantages is its access to Amazon’s vast resources. For example, startups accepted into the program can access various marketing tools, Amazon’s fulfillment network, and dedicated customer support. These resources can help startups streamline their operations, focus on product development, and provide top-notch customer service.

How to get on Amazon Launchpad

To get on Amazon Launchpad, users submit an application through the Amazon Launchpad website.

The application process involves providing information about your company, products, and business plan. Any seller or brand owner can apply if they have a unique or innovative product to sell, a strong brand story, and can prove growth potential.

Existing Amazon sellers may apply to join the Launchpad program if they’ve been on Amazon for less than three years and have sales below $5 million annually.

The Amazon Launchpad application process often involves a significant review and vetting process by Amazon’s team to ensure the quality and authenticity of the products.

Once accepted into Amazon Launchpad, members gain exclusive benefits and support from Amazon.

What products does the Amazon Launchpad program accept?

Qualifying for Launchpad is fairly easy if the seller meets the basic requirements.

Some popular Launchpad categories include:

• Home

• Grocery

• Health & Personal Care

• Toys

• Electronics

• Kitchen

• Pet Supplies

• Sports & Outdoors

• Clothing & Accessories

One of the best ways to determine if your product idea is an ideal fit for the Amazon Launchpad program is to browse crowdfunding sites like Kickstarter or Indiegogo to decide which products generate the highest pledge amounts and the biggest buzz.

Products that offer new and innovative solutions to old problems are the ones that have the easiest time being crowdfunded and accepted into the Amazon Launchpad program.

Benefits of joining Amazon Launchpad

Sellers who join Amazon Launchpad gain access to various resources and support, including marketing tools, educational content, and dedicated customer support.

By leveraging Amazon’s fulfillment network, startups can easily store, pack, and ship their products, allowing them to focus on product development and customer service.

Specifically, Amazon Launchpad members receive the following:

• A dedicated Amazon support consultant: Your Amazon support consultant is your personal support agent who is able to provide you with insights and info available only to Launchpad participants.
• A sponsored products advisor: Your Amazon-sponsored product advisor is an advertising specialist employed by Amazon to help with your PPC campaigns. Sponsored product advisors are especially useful to Launchpad members who may not be familiar with Amazon advertising.
• Premium A+ Content: Although the Amazon platform makes standard A+ content available to all registered brands, Launchpad members can access premium A+ content, which provides additional expensive modules typically reserved for larger brands.
• Additional product placements: As a Launchpad member, you can have your products featured on the  Launchpad category and new releases page, as well as on Amazon’s standard new releases page, providing more exposure and helping your brand to stand out.
• Email newsletter promotion: Selected Amazon shoppers receive emails from the platform exclusively featuring Launchpad products. These newsletters can provide sources of traffic that will boost the organic ranking of your product listing.
• Thematic Amazon campaigns: Whenever Amazon runs a promotion within a category relevant to your product, including lightning deals and sponsored product promotions, it may feature your product in the Amazon marketing campaign.
• Business insight report: Launchpad members have access to a set of self-service reports that provide market intelligence unavailable to other marketplace sellers.
• Dedicated Amazon storefront: Launchpad members can showcase their brands and products in a dedicated space, making it easier for customers to discover them and make purchases.
• Exclusive events and collaborations: Amazon Launchpad offers members an opportunity to participate in these exclusive opportunities, which aim to boost brand and product visibility, helping startups reach new customers and expand their market reach.

What is the cost of Amazon Launchpad?

The exact cost of Amazon Launchpad varies depending on the size and scale of your business.

When a seller account is approved to participate in the Amazon Launchpad program, Amazon charges a 5% fee on all sales, in addition to Amazon’s standard referral fees. Within the minimum 12-month contractual period, if gross sales exceed $1 million, Amazon may lower the fee to 3%, but that is not guaranteed.

Once the 12 months have passed, sellers may cancel their Amazon Launchpad subscription by giving Amazon 30 days’ notice. Amazon, on the other hand, can kick Launchpad members from the program for any reason at any time.

Startups and entrepreneurs should evaluate the potential return on investment offered by Amazon Launchpad and consider the value of the resources and support provided. As with any new marketing opportunity, entrepreneurs should carefully analyze their business goals, budget, and growth potential before joining Amazon Launchpad.

Does Amazon have a say in listings and prices?

Amazon Launchpad members retain complete control over both their listings and their prices. However, some users have noted that Amazon suppresses the Buy Box when prices are too high. Users also don’t like that Amazon sometimes forces them to offer discounts, hurting their profit margins.

So, although Launchpad users are officially in control of pricing, Amazon still controls some aspects of pricing.

Is there a difference between Amazon Launchpad and Amazon Accelerator?

Although Amazon Accelerator might look like Launchpad, the two programs are very different.

Amazon Accelerator and Amazon Launchpad both feature similar promotion and marketing support features. However, while Launchpad users maintain control of their brand and supply chain, with Accelerator, brand owners become Amazon suppliers. In turn, Amazon sells the products as its own through its central marketplace.

The Accelerator program is great for sellers who built and grew their brand on Amazon but want to “sell it off” to Amazon. Amazon will take control of the brand, and Amazon will sell the products as its own. A shared ownership agreement exists between Amazon and the products’ manufacturer.

Most startups and entrepreneurs who understand the power of selling on Amazon and wish to retain business control opt for Amazon Launchpad. On the other hand, manufacturers are more apt to choose Accelerator because it provides a great way to enter the Amazon marketplace at scale while focusing on production.

Anyone considering Amazon Accelerator should be sure they are comfortable handing over branding and supply chain control to a bigger and more powerful partner.

Is Amazon Launchpad worth it?

Amazon Launchpad can be an incredibly useful tool for entrepreneurs, startups, and even existing businesses.

One of the main advantages of being a part of the Amazon Launchpad program is increased visibility. By being part of the program, startups can showcase their brand and products to millions of potential customers. This kind of exposure can significantly boost brand awareness and drive sales.

In addition to visibility, startups can leverage the trust and credibility associated with the Amazon brand. Customers are more likely to trust and purchase products that are part of Amazon Launchpad. That can help brands to establish credibility in the market and gain customer trust.

However, it’s essential to carefully evaluate your own business goals and resources to determine if Amazon Launchpad aligns with your overall strategy. Testimonials from others who have used Amazon Launchpad can provide valuable insight into the value and success of the program.

Ultimately, making an informed decision based on your specific circumstances is key.

Before you apply to be part of the Amazon Launchpad program, consider the following:

Amazon Launchpad users are essentially locked into a 12-month contract

Launchpad participants are contractually obligated to remain in the program for 12 months. That is important, considering some sellers have expressed disappointment over low profitability during their product launch phase. No matter what happens, you’ll need to accept the fact that you’ll need to wait a full year before leaving the program.

You should always verify your product idea through crowdfunding platforms

Even if you don’t need additional funding, crowdfunding websites are a great platform for testing your product and garnering feedback. There are many reasons why certain products won’t sell. Whether customers don’t understand the product’s purpose, the audience isn’t ready for it, or they don’t like the design, tackling these issues ahead of time is incredibly important.

Have a legitimate long-term plan before joining Amazon Launchpad

Any products sold through Launchpad must be delivered to Amazon’s warehouses before even one item sells, posing a significant financial risk to sellers. You will need plenty of stock available from the beginning and ready regularly for replenishment.

Leverage the support of your crowdfunding partners

Combine the power of your crowdfunding resources with your Amazon Launchpad efforts. You can email crowdfunding supporters with Amazon product links to order additional items, thus generating sales and improving your ranking. You can also use your Amazon links to update them on new product versions, refills, and accessories.

Don’t expect Amazon Launchpad to be an easy ticket to success

Although Amazon Launchpad is a solid program with additional placements to boost sales and a good support system, you’ll need to invest much time and effort to succeed.

Amazon Launchpad’s Premium A+ Content is its best feature

Used properly, Amazon’s Premium A+ Content feature will help make your product page shine, and it also has the potential to boost conversion rates. For some brands, that feature alone can make joining the program worth it.

Success stories from Amazon Launchpad

There are numerous success stories of startups that have used Amazon Launchpad to achieve significant growth and success.

For example, Plankpad, an app-connected core trainer that combines games with workouts on your iPhone and Android, saw its units sold increase by 400% in just twelve months after joining Amazon Launchpad in February 2020.

Steeped Coffee, a groundbreaking innovation in single-serve coffee, has achieved remarkable success through Amazon Launchpad since launching in 2020. The company sold over 8,000 units of its product during its first year while launching simultaneously on Amazon and Amazon Launchpad.

These success stories are just two of many that highlight the potential for startups to scale their businesses and reach new customers through Amazon Launchpad. Startups can learn from these success stories and others to apply similar strategies to their companies and maximize their chance of success.

Expanding your business with Amazon Launchpad

Amazon Launchpad can be a valuable tool for startups looking to expand their business and reach new customers. To maximize the benefits of Amazon Launchpad, startups should optimize their product listings on Amazon using high-quality images, compelling product descriptions, and relevant keywords to attract customers.

Additionally, startups should leverage Amazon’s advertising tools to drive traffic to their product listings and increase sales. Engaging with customers by responding to reviews, addressing concerns, and providing exceptional customer service is crucial for building customer loyalty and trust.

Analyzing and optimizing sales data is another important aspect of expanding your business with Amazon Launchpad. By analyzing sales data, startups can identify trends and growth opportunities, then make data-driven decisions to grow their business.

The truth about Amazon Launchpad

Amazon Launchpad offers startups and entrepreneurs a unique opportunity to gain exposure, access resources, and grow their businesses. By leveraging the reach and credibility of Amazon, startups can tap into millions of potential customers and drive sales.

Before applying to be part of the Amazon Launchpad program, however, it is essential for startups to carefully evaluate their own business goals, resources, and product fit to determine if Amazon Launchpad is the right for them.

With the right strategy and utilization of the resources provided by Amazon Launchpad, startups can increase their chances of success in the highly competitive e-commerce landscape.