So — you’ve successfully funded your Kickstarter or Indiegogo crowdfunding campaign.
First of all: Congratulations! That’s a huge accomplishment. But with your successful product launch comes a new opportunity to expand your business, and you need to capitalize.
There are several actionable steps you can take to keep the momentum alive from your crowdfunding campaign, such as:
- Using Amazon LaunchPad — which we will discuss in this article.
- Continuing your campaign on Indiegogo InDemand. Learn more about that here.
- Building an e-commerce store on a platform like Shopify. Learn about that here.
For now, let’s focus on Amazon Launchpad.
You’ll come away with an understanding as to how this powerful platform can go to work for your product/business, as well as some potential drawbacks to be aware of.
Let’s blast off!
What is Amazon Launchpad?
Amazon Launchpad works in combination with more than 25:
- Equity Capital Firms
- Startup Accelerators
- Crowdfunding Platforms
Permitting startups the ability to quickly market and offer their products on the Amazon.com super-website.
Entrepreneurs that have pulled off successful crowdfunding projects already have a base of interested consumers. With Launchpad, you can take that existing audience and link it with new audiences on an international scale.
This can be especially valuable for startups that have inventory they’re looking to move out the door.
Selling on Launchpad in particular offers some perks that you don’t get from selling just on Amazon, such as:
- Inventory management, order satisfaction, and customer support is taken care of by the Launchpad team — so that you can focus on further innovation and growing your business.
- Launchpad group that answers questions and assists with onboarding.
- Access to exclusive promotions such as gift guides.
Is Amazon Launchpad Right For Your Product?
Naturally, it depends.
If you have a lot of inventory and you can continue to manufacture at a high rate, then Amazon Launchpad could be perfect for your business.
You should also consider the type of product you’re offering. If you’re selling a gadget or gizmo, that’s great for pushing to consumers.
But if you successfully funded a specialized medical device, per se, there probably won’t be much interest.
And to sell on Launchpad, you’ve got to keep a couple things in mind:
- Amazon wants to ensure you have enough items for customer satisfaction. This means having stock on hand to sell at a large scale.
- You sell the product to Amazon on wholesale terms, and then they sell it at a retail rate.
When selling on Amazon Launchpad, you have the chance to get millions of eyes on your product — which is pretty exciting. But there are some drawbacks as well.
Drawbacks of Amazon Launchpad
Here are some potential pitfalls of using Amazon Launchpad:
- Lack of brand control: When you sell on Amazon Launchpad, your product appears on the Amazon platform. In general, people aren’t as concerned with your brand and they might buy once, then never come back. That’s why brand-centric creators tend to prefer Shopify to communicate messaging and obtain customer data.
- Reduced Margins: While Launchpad offers the opportunity for more people to buy your product, you’ll make less on each sale. Launchpad itself doesn’t apply a fee, but you’ll be selling as an Amazon vendor, which means that they’re taking a chunk of your profits.
- Danger of Copycats: Amazon requires you to trademark your brand with the Brand Registry and, subsequently, Amazon Launchpad. Still, this doesn’t continually safeguard your idea. Counterfeits and knock-offs can become a real concern. To learn more about potentially receiving a patent to protect your product, visit this article.
Key Takeaways
Now that we’ve identified some of the pros and cons of using Amazon Launchpad after your successful crowdfunding campaign, you have to decide if the platform is right for your selling strategy going forward.
If you think that Launchpad is the next step in your journey, you can apply here.
Just make sure to consider other options such as Indiegogo Indemand and your own e-commerce store before you jump the gun with Launchpad.
We hope that this article was helpful for you. Here at CrowdCrux, our mission is to empower entrepreneurs like you to achieve their dreams.
If you want more insider advice, check out some of the other resources we have:
- Subscribe to the CrowdCrux email newsletter and Youtube Channel for all the best insider tips, tricks, and secrets.
- Check out the Crowdfunding Demystified Podcast and this book for interviews with wildly successful creators who have run six-figure campaigns.
- For in-depth insights on an A to Z crowdfunding strategy, check out: The Kickstarter Launch Formula — through this book or this course.
Looking for more personalized advice?
Book a coaching call with founder of CrowdCrux Salvador Briggman.
Good luck with your future endeavors, and congrats again on the successful crowdfunding campaign! And remember, CrowdCrux is here if you need us!
