Entering the U.S. market is exhilarating—and unforgiving. It’s the largest, most competitive consumer market on earth, with sophisticated shoppers, broad channel choices, and razor-thin attention spans. The most practical way to de-risk your launch, validate product-market fit, and scale efficiently is to start on Amazon.

Below, we’ll lay out a pragmatic launch plan, the data that underpins it, and a few brand stories that show how Amazon can be the springboard to mainstream U.S. success.

Why Amazon first?

1) It’s where American online shopping happens

Multiple independent trackers agree: Amazon commands ~38–41% of U.S. ecommerce—more than the next several retailers combined. Insider Intelligence (eMarketer) notes Amazon accounts for “more than 40%” of U.S. ecommerce and continues gaining share; other estimates peg 2024–2025 at roughly 37–40%. Practically, that means if you want to be where the buyers are, you start here. EMARKETER+1 Red Stag Fulfillment

Just as important, Prime penetration is enormous. Consumer Intelligence Research Partners (CIRP) estimates ~196–197 million U.S. Amazon customers had Prime memberships as of March 2025, up from ~180M a year prior. That’s extraordinary built-in demand and trust—especially for a brand with zero name recognition. cirpamazon.substack.com+1

2) The marketplace model favors challengers

Amazon’s marketplace is no longer dominated by first-party retail. Independent third-party sellers now drive “more than 60%” of sales in Amazon’s store, with 62% of units in Q4 2024—a structural tailwind for new entrants. In other words, the platform is designed for brands like yours to compete on a relatively level playing field. Amazon News Marketplace Pulse

3) Speed to insight (and to scale)

Amazon shortens the feedback loop: listings go live, traffic flows, conversion data accrues quickly, and you learn what the U.S. shopper wants—fast. It’s the best laboratory for price discovery, positioning, creative testing, and assortment curation, before expanding to retail partners or pouring spend into upper-funnel media.

4) Logistics and trust you can borrow

With FBA (Fulfillment by Amazon), your products ride on one of the world’s fastest last-mile networks and carry the Prime badge—critical for conversion. Even off-Amazon, Buy with Prime has shown double-digit conversion lifts (often ~25% on average in Amazon’s materials), evidence of the trust halo you can extend to your own site after you establish traction on Amazon.

A right-sized launch plan for the U.S. (and what to measure)

Here’s a phased playbook we use with high-growth challenger brands.

Phase 0: Strategic setup (2–3 weeks of prep)

Audience & search demand mapping. Use U.S. keyword volume and competitive SERP density to prioritize 3–5 core product terms plus 10–15 long-tails.
Offer architecture. Start with a hero SKU (or two) plus 1–2 bundles that improve unit economics (AOV, contribution margin).
Pricing corridors. Model landed cost → contribution margin → breakeven ACoS. Your opening bid strategy, coupons, and Subscribe & Save should fit inside this corridor.
Retail readiness assets. Hero imagery (lifestyle + benefit callouts), 6–8 bullets with scannable benefit-led copy, A+ Content, a brand story module, and at least 10 early reviews via compliant programs.

What to track: target contribution margin at list, breakeven ACoS, target TACoS, competitive price bands, review velocity.

Phase 1: Launch & learn (first 60 days)

Sponsored Products first. Capture in-market demand against your exact and phrase keywords; layer category-level targeting for conquesting.
Retail media hygiene. Budget to win the detail page (Sponsored Products), and secure top-of-search on 3–5 must-win terms.
Promotions that compound. Limited coupons and “save X%” badges to seed conversion rate.
Reviews flywheel. Post-purchase messaging (compliant), insert cards (non-incentivized), and customer service that turns neutral experiences into 5-star outcomes.

What to track: CVR by keyword, organic rank movement, TACoS trend, Blended CPA, return reasons (with themed actions).

Phase 2: Scale & defend (months 3–6)

Broaden targeting. Sponsored Brands + Stores to trade up AOV and express your positioning; Sponsored Display for cross-sell/retargeting.
Assortment extensions. Add a variation (size/flavor/color) once the hero SKU has stable rank and ≥4.4★ with 200+ reviews.
Channel hygiene. Enroll in Brand Registry, lock down distribution, police unauthorized sellers, set MAP if applicable.
Retail expansion. With proof points in hand (run-rate, repeat, low return rate), approach retail buyers or activate wholesale/marketplace partners.

What to track: Repeat purchase %, Subscribe & Save penetration, branded vs non-branded mix, contribution margin after ads, LTV:CAC.

The data case for “Amazon first”

Dominant share of ecommerce: Amazon hovers around ~37–41% of U.S. ecommerce, well ahead of Walmart (~6%). Concentration of demand makes it the most efficient testing ground for new brands. Red Stag Fulfillment upcounting.com
Prime saturation: ~196–197M U.S. Prime customers as of early 2025—a ready-made base of high-intent shoppers that over-index on spend and frequency. cirpamazon.substack.com+1
Third-party-friendly economics: 3P sellers account for ~60%+ of Amazon sales/units, indicating the platform’s evolution from retailer to seller infrastructure. Amazon News Marketplace Pulse
Trust effect beyond Amazon: Buy with Prime materials show ~25% average conversion lift when the Prime promise comes to your DTC—useful once you spin out from an Amazon-first launch.

3 brands that used Amazon to break out in the U.S.

**1) Hero Cosmetics (Mighty Patch): From single-SKU on Amazon to a $630M exit**

Hero Cosmetics launched in 2017 with a focused proposition—hydrocolloid acne patches—and intentionally started on Amazon to tap search demand and fast reviews. The strategy worked: the company crossed **$100M in sales by 2021** and, in **September 2022, Church & Dwight acquired Hero for **$630M**. Hero’s leadership has repeatedly credited Amazon for early traction and efficient scaling before broad retail roll-out (now thousands of U.S. doors). Key lesson: obsessive focus on one hero problem + one hero SKU, retail-ready content, and paid search discipline can compress time to product-market fit. Glossy Marketplace Pulse BeautyMatter

What to emulate:

Tight SKU focus to win page one for must-win queries.
Retail-ready content and aggressive review velocity.
Add retail doors only after your Amazon unit economics stabilize.

**2) Anker: Amazon-native to category leader, then beyond the marketplace**

Anker began as an Amazon-native electronics brand and used the marketplace’s demand engine to scale charging and accessories categories. By **2021 Anker surpassed $1B in Amazon sales**, then successfully diversified across channels and expanded into adjacent categories—proof that Amazon can be the primary growth engine **and** a launchpad to multi-channel brand equity. For new entrants, Anker shows how relentless listing optimization, high-volume review moats, and disciplined pricing can compound into category dominance. Marketplace Pulse

What to emulate:

Own your category’s generic keywords and related long-tails.
Treat reviews and reliability as the product; operational excellence is your moat.
Use Amazon data to time new product introductions.

**3) Zesty Paws: Amazon-heavy growth to nine-figure acquisition**

Founded in 2014, Zesty Paws grew rapidly in the pet supplements niche with a strong Amazon presence and brand storytelling tailored to detail pages. In **August 2021, Zesty Paws was acquired by H&H Group for $610M**, a validation of the brand’s scale and defensibility built in large part on marketplace momentum. The case underscores how specialized CPG can use Amazon to validate demand, build a defensible review moat, and exit at premium multiples. Consumer Goods Technology

What to emulate:

Niche down (condition-specific solutions), then ladder up to a broader regimen.
Invest in infographic-style images and A+ Content that teaches and converts.
Expand into DTC and retail after Amazon flywheel metrics are healthy (CVR, reviews, repeat).

Common objections—and how to mitigate them

“Fees and ads make it hard to profit.”
True: fees have risen, and advertising is table stakes. But disciplined SKU economics (landed cost discipline, contribution margin modeling, and breakeven ACoS) plus bundles/variations can preserve margin while you scale. Many brands accept thinner contribution in months 1–2 to build rank/reviews, then expand margin as organic share grows.

“Temu/SHEIN are racing up the charts.”
They are, particularly for ultra-low-price goods. Still, Amazon retains the dominant share (~40%) and unmatched Prime trust/logistics for branded CPG, electronics, and considered purchases. Use Amazon to establish your quality and service position—and price fairly rather than racing to the bottom. Wall Street Journal EMARKETER

“Grocery or big-and-bulky seems harder on Amazon.”
Category dynamics differ. Amazon is expanding aggressively in same-day grocery across U.S. cities, but Walmart leads online grocery for now. If you’re perishables-heavy, pilot Amazon Fresh/Whole Foods or lead with non-perishable hero SKUs on Amazon while building retail distribution in parallel. Investors

Your first 90 days: a checklist

1. Nail retail readiness

7 images minimum (one lifestyle in the first three); benefit-led infographics; short bullets with scannable value; A+ and Brand Story live.
Collect 25–50 authentic reviews quickly (compliantly).

2. Engineer unit economics

Set list price to cover fees + ads while preserving contribution margin.
Launch one hero SKU + 1–2 bundles/variations to lift AOV.

3. Own search demand you deserve

Build exact-match campaigns for your top 3–5 generics and brand terms.
Defend your detail pages (Sponsored Products) before expanding to Sponsored Brands/Display.

4. Prime badge, fast shipping, low friction

Enroll in FBA to earn Prime and maximize conversion.
Track and respond to Voice of the Customer and return reasons weekly.

5. Iterate weekly

Treat creatives and bullets as living assets; test new lead images, titles, and A+ modules based on search term reports and session→CVR diagnostics.

Milestones that prove you’re ready to scale beyond Amazon

CVR ≥ 18–25% on branded terms and ≥ 10–15% on primary generics (category-dependent).
TACoS trending down for 4–6 consecutive weeks as organic rank improves.
≥ 200 reviews at ≥ 4.4★ on the hero SKU; review velocity of 15–25/month.
Repeat purchase signal (Subscribe & Save penetration or re-order rates) in consumables.
Operational excellence: sub-1% order defect rate, <5% return rate (category norms apply).

When these are true, you can: (a) lean into Amazon Ads for new term expansion; (b) add SKUs/variations and premium bundles; (c) use your Amazon proof to pitch national retailers; and (d) extend Buy with Prime to your DTC to convert borrowed trust into owned relationships.

Final word

For most brands launching in the U.S., Amazon is the shortest path to signal—real shoppers, real conversion data, and real revenue. The platform’s demand concentration, Prime saturation, and third-party-friendly mechanics make it the best lab to perfect positioning and unit economics before expanding into wholesale and omnichannel retail.

Use the marketplace intentionally: start focused, measure ruthlessly, and let Amazon’s scale compound your learnings. If Hero Cosmetics, Anker, and Zesty Paws prove anything, it’s that you can start on Amazon and end up with a national brand—and sometimes, a nine-figure outcome.

Launching in the U.S. Market: Why Amazon Is (Still) the Smartest First Move for New Brands

Why Amazon first?

1) It’s where American online shopping happens