Q&A with Kristin Perchal, Head of Amazon Launchpad Australia

Kristin Perchal, Head of Amazon Launchpad Australia, joined us this month to answer your questions about Amazon Launchpad.

You can also view Kristin's Australian Made Webinar on Amazon Lauchpad here.

What are the benefits of Amazon Launchpad?

Kristin: Startups and entrepreneur’s become Amazon.com.au selling partners via a streamlined onboarding experience. Once set up and in the Amazon.com.au Launchpad program, they will enjoy:

• Brand Development: Custom product pages help bring products to life through visually-compelling imagery and videos. Founders can tell their story and connect with customers in a personal way with Q&A about the startup. Products from these brands are featured in the Amazon.com.au Launchpad store, which is dedicated to showcasing brand innovations.
• Customer Reach: Amazon.com.au’s most powerful marketing tools – including merchandised placements and personalised recommendations. Brands also enjoy access to Amazon’s global fulfilment network, fast and free shipping with Amazon Prime, and customer service. 
• Global Expansion: When startups are ready to reach customers outside Australia, Amazon.com.au, Launchpad can help them expand globally with cost-effective supply chain solutions and marketing programs in more than 7 Amazon Launchpad marketplaces around the world.

Does Amazon Launchpad require exclusivity?

Kristin: Amazon Launchpad does not require exclusivity. We encourage our brands to be where their customers will shop. We find that most brands will sell on their own website and Amazon.

What kinds of products are most successful in the launchpad program?

Kristin: Amazon Launchpad support various different product categories from fashion, beauty, pet, to tech. There is no one product line that has been more successful than others. The most successful product lines we’ve seen have product differentiation through innovation, sustainability, or mission-driven focus; have a dedicated Amazon person on their team; a social and marketing strategy outside of Amazon; and marketing budget for Amazon.

How many products do you recommend for a successful launch?

Kristin: There is no minimum or maximum number of products you need to launch on Amazon. We have seen some brands launch with one product and be successful; while we have others that have launched with several lines with success. Most brand owners will take a two-phased approach by launching with their ‘best-sellers’ and then adding on other products to complete their product line. On average, we have seen our brands have 15 – 16 products listed on Amazon.  

Are there size limits on the products able to be sold on Amazon? Who is responsible for packing and shipping products to customers?

Kristin: Amazon Launchpad requires all products to have the Prime badge, meaning that the products must utilise Fulfilment by Amazon (FBA). FBA selling partners will send their product into one of Amazon’s two fulfilment centres where we will hold the goods until purchase. Once purchased, Amazon will pick, pack, ship, and provide customer service on the brands behalf.

At Amazon Australia, we are constantly improving our fulfilment centres to accept various sizes and weight items. Currently, we are unable to accept goods that are over 23kg in weight. When you apply, an account manager will review your products to assess if FBA is an option.

Brands are always welcome to sell their products on Amazon through the merchant fulfilled network (MFN). This option allows brands to post their listings on Amazon and utilise their own warehouse and shipping carriers to deliver the products to customers. This option does, however, remove you from being eligible for Amazon Launchpad. You can find out more about the different ways to sell on Amazon here.

Does Amazon carry stock of my product and is there a minimum commitment from me as a manufacturer? What happens to the inventory that are unsold?

Kristin: Amazon offers brands three ways to sell on Amazon – merchant fulfilled network (MFN), Fulfilment by Amazon (FBA), and Amazon Retail. Amazon Retail is the only selling option where Amazon will purchase a set number of units from the brand to stock in our fulfilment centres. Quantities are determined by Amazon.

In the event that a brand’s inventory is not moving, Amazon will work with the brands to sell their product, prior to beginning processes to remove the inventory from the fulfilment centres.

Does Australia’s Amazon Launchpad have a global reach? What countries will my products be available in? Does this involve the Chinese market?

Kristin: Yes, Amazon Launchpad is a global program in over seven countries including United States, United Kingdom, and India. Going global with Amazon Launchpad provides a similar suite of marketing benefits received in Australia within those countries.

Once you determine it is the right time for your business, we will help streamline the on boarding process of selling into one of our partner country programs.

Brands are always welcome to sell internationally at any time through the Amazon; however, the brand will not receive any Amazon Launchpad marketing benefits. You can learn more about selling internationally and where we sell here. 

Can we launch directly in overseas markets or do we have to launch in Australia first?

Kristin: Whilst not a requirement to launch in Australia first, we do recommend brands who are new to Amazon start in their home country to build their understanding of Amazon tools, how to sell and promote their products before moving into a more mature places like the United States.

What is Amazon Launchpad’s financial model for participating manufacturers?

Kristin: Amazon Launchpad is recruiting for brand owners. If the manufacturers are the brand owners of their product line, they will be considered for Amazon Launchpad.

Amazon Launchpad requires all participating brands to sell on Amazon and obtain the Prime badge, meaning regular selling and FBA fees will be incurred. Amazon Launchpad does not have a fee for 2019, but this may change in the future.

You can learn more about selling costs here.

How do we find out more information and apply?

Kristin: More information on Amazon Launchpad including brand stories and a link to the application form can be found at: https://services.amazon.com.au/amazon-launchpad.html