April 8


Considering Distribution?

Thanks to the explosive growth of Ecommerce, launching a new CPG product has never been easier.

However, according to #Nielsen, 3,000 new CPG products are estimated to launch next year and nearly 85% will fail.

As brands define go-to-market distribution plans, one of the most frequently asked and debated questions is “should I leverage existing well-known platforms to sell my products or create my own?” 🎯

👉 Five prerequisite questions that should be addressed before you even consider distribution:

1. Who is your core customer?

2. What is their biggest pain point that your product solves?

3. Why is your brand uniquely qualified to solve it?

4. How does your product work?

5. What is the proof that your product works?

As obvious as these questions may seem, they are often the last questions asked, and usually, only after the product has been manufactured and the distribution channel is defined. By then, it’s too late!

Investing in messaging strategy and testing has never been more important as part of the launch plan. Amazon is a great sandbox to test your product’s market fit as it can provide instant consumer feedback and ratings/reviews to help refine messaging and positioning as you’re developing your own consumer platform.

Brands that choose to depend exclusively on AZ for sales will run the risk of not building stronger LTV and direct engagement with their customers. As attribution continues to be a challenge and advertising costs continue to rise on AZ it is no longer an option to ignore building the 1:1 consumer connections you can develop with your own custom Ecommerce experience.

Retail stores are another great source of sales volume, but the investment is much more significant, and brands need to be prepared to support the channel with its complex inventory and unique marketing challenges.

My advice?

Start building a DTC platform first through AZ to develop early sales momentum through search and DSP marketing, while planning for and building out a branded platform through your owned/operated Ecommerce and social media channels. Once the brand is established, consumers will drive demand to retail. Then, you’re in a much better position to win retail sales and complete an omnichannel distribution model.

Love to hear your thoughts below!

Rose Hamilton

About the author

With over 20 years in Omni-channel retail, Rose is a proven Ecommerce expert specializing in evaluating, launching, growing and scaling Direct to Consumer businesses.

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