Why most DTC launches on Amazon lose money
- Listing the full catalogue at once, which splits ad budget and review velocity across too many ASINs
- Porting website pricing directly, which forgets the 15 percent referral fee and FBA fulfilment
- Spending on PPC before the listing converts, which burns budget and teaches the algorithm the listing is weak
- Treating Amazon as a storefront rather than a search engine, so copy reads like brand poetry instead of query-matched language
The launch sequence, in order
Sequence matters more than effort. Each step depends on the one before it, and skipping ahead is what makes launches expensive.
| Phase | Weeks | Focus |
|---|---|---|
| Foundations | 0 to 2 | Brand Registry, trademark, account setup, tax and fulfilment plan |
| Catalogue | 2 to 4 | Hero ASINs, variation structure, Amazon-only bundles, listing copy and images |
| Proof | 4 to 6 | Vine enrolment, first reviews, A+ Content, Brand Store |
| Demand | 6 to 10 | Exact-match PPC on core terms, then broad and Sponsored Brands |
| Scale | 10 weeks onward | DSP retargeting, Subscribe and Save, marketplace expansion |
Pricing so Amazon does not eat your margin
Model Amazon economics before you list. A 40 dollar product typically loses 6 dollars to referral fees and 5 to 8 dollars to FBA, before advertising. If your DTC contribution margin was 55 percent, expect it nearer 30 percent on Amazon at the same price.
Do not solve this by charging less on your website. Amazon monitors external pricing and will suppress the Buy Box. Solve it with pack size: sell singles on DTC and two-packs or refill bundles on Amazon so the unit economics work at a price shoppers accept.
- Build a per-ASIN profit sheet including referral, FBA, storage, returns, and target ACOS
- Keep your list price consistent across channels to protect the Buy Box
- Reserve promotional depth for coupons and Subscribe and Save rather than permanent price cuts
Getting reviews without breaking policy
- Enrol every hero ASIN in Amazon Vine on day one for up to thirty reviews
- Use Request a Review on every delivered order, which is compliant and automated
- Add product inserts that ask for feedback generally, never for positive reviews or in exchange for anything
- Never migrate reviews or incentivise them through your DTC list, which risks account suspension
Protecting your DTC business while you scale on Amazon
Your website remains the place where you own the customer. Keep it the home of subscriptions, loyalty, personalisation, and the full range, so Amazon becomes an acquisition channel that feeds it rather than a replacement for it.
Track blended contribution margin across both channels monthly. If Amazon growth is coming entirely at the expense of DTC repeat orders, the offer differentiation is not sharp enough yet.
