What is the new product development process? Practical steps from idea conception to distribution

For sellers who are unsure of how to proceed with product development, this section introduces the flow of product development using Amazon services, with example cases.
product_step

Flow and benefits of new product development

First, we’ll introduce the flow of new product development, the benefits, and key points for success.

Process and flow of new product development

The process and flow of new product development are made up of the following six steps.

*This is a product development process that can be used not only by companies but also by individuals.
(1) Needs segment research
(2) Come up with ideas for product development
(3) Set target and concept
(4) Plan a concept for product development
(5) Manufacture prototypes (test products)
(6) Start selling and implement marketing strategies
On this page, we will introduce the flow, process, and example cases of new product development using Amazon services.

Advantages of using Amazon to develop new products

The advantage of using Amazon's services is that there are tools and services that are useful in the series of new product development processes.
• Before starting to sell:
Needs research using Amazon best-selling rankings, Opportunity Explorer, andmarket basket analysis dashboards

• After product development starts:
Test sales using Seller Central's Manage Your Experimentsand marketing strategies using Amazon's FBA delivery serviceandadvertisements
If you use services such as Amazon Seller Central in this way, you will be able to develop new products more efficiently.

Amazon jargon:

Seller Central

Seller Central is the sales monitoring website where sellers log in to monitor their Amazon listings activity. You can manage inventory, update pricing, communicate with buyers, review account health, contact selling partner support, and add new products.

Key points for successful new product development

By being aware of the following four points, it’s possible to develop products that meet customer needs.
• Understand the process and flow of product development
• Estimate costs required for product development
• Think about marketing after product development
Advance preparation is important when developing new products, so take your time as you move forward with the flow and process.
Scene of coming up with ideas

The six processes of new product development

New product development is an important activity directly linked to business success and expansion.
The process from coming up with an idea to starting sales is divided into six processes, and we will introduce the features that can be used within Amazon.

*This is a product development process that can be used not only by companies but also by individuals.
(1) Needs segment research
(2) Come up with ideas for product development
(3) Set target and concept
(4) Plan a concept for product development
(5) Manufacture prototypes (test products)
(6) Start selling and implement marketing strategies
Amazon's Seller Central offers content and features that are useful for product development.

This time, we will introduce the process of new product development using Amazon's product page and Seller Central.

1. Needs segment research

The first step is needs segment research.
When developing new products, try investigating from the following three perspectives.
• Customer: Customer needs and behavior
• Company: Business strategy and company strengths
• Other Company: Relationship to other companies in the same industry
Your range of ideas will change depending on needs segment research. Therefore, the more time you spend on this process, the more precise you’ll be when conducting new product development. You can analyze customer needs in more detail by reading

Amazon's best-selling product reviews.

2. Come up with ideas for product development

Once you’ve completed needs segment research, it's time to start coming up with ideas.

The 5W1H framework can be useful when you’re coming up with ideas for product development.
• Who: Who will use the product
• When: When will the product be used
• Where: Where will the product be used
• What: What specifically will be offered
• Why: Why use the product
• How: How the product will be used
Amazon can support planning new product development with the following tools.
This is an explanation of each tool.

Tool name

Description

Can be used by

In addition to the popularity of each category, it is possible to analyze from various perspectives such as best sellers, latest releases, Wish List rankings, and popular gift rankings. The rankings are updated frequently, so you can get ideas from the latest trends.
All sellers
(can be viewed by anyone on the Amazon sales page)
Since you can obtain insights into search and purchase behavior, you can identify potential buyer demand and opportunities for new products you want to handle in the future and use them as a reference for product development ideas.
Businesses selling on Amazon
(accessible from Seller Central)
You can browse the top 3 products that are most frequently purchased at the same time as products from your brands and the percentages of the combinations. Using this data helps with new product expansion ideas.
Only businesses selling on Amazon and brand owners
(accessible from Seller Central)

3. Set target and concept

The two questions that are crucial when you’re conducting new product development are “Who?” and “Why?”
• Who: Who will use the product?
• Why: Why use the product?
For the target, form a “persona,” which is a specific description of a person.
Specific example of a persona
• Name: Taro Amazon
• Gender: Male
• Age: 29 years old
• Marriage status: Single
• Residence: Living alone in Tokyo
• Annual income: 7 million yen
• Occupation: Sales position at a real estate company
Once you’ve decided on a specific persona, not only can you use it for new product development, but also for marketing strategies.

After selling on Amazon, you can check customer satisfaction via buyer feedback. The voice of customers can also be collected from buyer product reviews.
To achieve good product development flow:
(1) Analyze customer needs and develop products on Amazon
(2) Actually sell products that were developed on Amazon
(3) Move onto your next product development based on the real voices of customers
Doing this will result in a good product development flow, as described above.
product_step

4. Plan a concept for product development

Once you’ve come up with ideas and decided on a target, the next step is to plan a concept.

This process involves making internal and external adjustments and planning to shape your idea.
• People: Who from which department is in charge
• Things: What are the materials and ingredients that will be used for the product
• Money: Costs and advertising fees for new product development
It's easy to come up with ideas and plans if you think about the three elements of planning concepts: “People,” “Things,” and “Money.”

If you’re worried about cost, you can stay efficient by searching the price range of top products on Amazon and calculating the cost backwards from there.

5. Manufacture prototypes (test products)

Once you’ve manufactured the test products, you can reach many customers by selling it on Amazon.

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¹ March 2019 Nielsen Digital Content Measurement: Brand Level - Home and Workplace Access
² March 2019 Ranking by Nielsen Mobile NetView Brand
While selling on Amazon, use the business reports within Seller Central to analyze whether your products match customer needs.

6. Start selling and implement marketing strategies

The final step in the process is actually starting to sell.

If you use Amazon services, you can execute an effective marketing strategy.

1. FBA shipping service

With FBA, you can leave the tedious delivery processing to Amazon.

If you're selling as an individual, using FBA can greatly reduce the time and effort it takes.
Seller’s response
icon: global with a dollar sign
icon: global with a dollar sign
Add product
process shipment
Ship your products to Amazon
Amazon's response
icon: global with a dollar sign
icon: global with a dollar sign
icon: global with a dollar sign
Process orders
package products
Deliver to buyers
Customer service
return handling

Amazon Vine paid program

The Amazon Vine paid program is a program where products can be provided free of charge to the most reliable reviewers (Vine Voices) selected by Amazon and customer product reviews can be requested.

By meeting the following 3 prerequisites, it is possible to gather reviews for new products.
• Being a business owner with a Professional Selling Plan
• Have products that are listed in the target FBA
• Being a brand representative approved by the Amazon Brand Registry, and recognized as a brand owner

Amazon Advertising

Four advertising solutions are available and can be applied for through Seller Central.
Icon: Computer with Sponsored Product on screen
Sponsored Products are ads for individual products listed on Amazon. They’re displayed in the product search results and product detail pages. The set up is relatively easy, even for beginners.
Sponsored Products, which are recommended for first-time Sponsored Ads operations, can effectively reach a highly-motivated audience that is actively searching for related products by making products visible in prominent places.
Icon: Computer with Sponsored Brand on the screen
Sponsored Brands1 showcase your brand image and product lineup. Since the brand logo, headline, images, and up to three products are displayed, it helps build brand awareness and promotes combined purchases effectively. Also, linking with brand stores can further support purchase considerations.
Sponsored Brands help raise brand awareness and product lineups by presenting the factors that make your brand unique, increasing opportunities that encourage purchasing considerations and reach new audiences.
Icon: Computer with Sponsored Product on screen
Sponsored Display2 places ads not only on Amazon, but also in many places where there are shoppers, and reaches more relevant audiences at the best timing based on sales and browsing behavior, etc.
Sponsored Display can help you reach more suitable audiences that are highly motivated to buy in a variety of locations and with manual targeting approaches.
Icon: Monitor with a play button displayed on the screen
Sponsored TV3 can be distributed via premium third-party content on Prime Video, Twitch, and Amazon Publisher Direct, and can help promote brand awareness and consideration. *
Sponsored TV are video ads that help brands of all sizes reach a wide audience and increase visibility with just a few clicks at an affordable cost.
* As of May 8, 2025, Sponsored TV can only be posted on Twitch in Japan.
Utilizing Amazon's services will not only help you move forward with product development efficiently, but also allow you to analyze customer needs in detail.

Why not give shape to your ideas and deliver them to customers through Amazon?

New product development success stories

Here, we will introduce a success story of greatly expanding sales on Amazon through new product development.

ZEN Camps

ZEN Camps is a brand born out of the desire for more people to vividly experience their wonderful inherent feelings and emotions through camping.
Based on the brand slogan “We help you find your unseen self,” they have developed many products, and they value creating products with a sense of excitement that makes users feel that they “want to go camping right away.”

In May 2025, the number of products they had on sale exceeded 100, which was 1.5 times that of last year, and sales since the beginning of 2025 have increased by an average of +30% or more compared to last year.
We spoke with a representative of ZEN Camps about the key points of their new product development.

Q: How do you find new product development ideas?

A: Many of our development members are camp enthusiasts, and they create product ideas based on insights gained from actual field experience. As I frequently go camping, I often experience “inconvenience” at the site. This experience and my realization that “it would be nice if it were more like this” became the starting points for real development.

Q: What improvements are being made from testing new products through full-scale development?

A: Before commercialization, we actually take the product camping many times to verify in detail how comfortable it is to use and its durability and storability at the site. In some cases, prototypes are provided to people who are experienced outdoors to get realistic feedback. Based on the opinions received, improvements directly linked to practicality are made, such as size adjustments and material reassessment, and full-scale development is carried out after achieving satisfactory quality.

Q: What Amazon services and policies are you using to increase sales of new products?

A: In addition to sponsored product ads, we are actively using Sponsored Brands and Sponsored Display ads on Amazon. In order to increase opportunities for more users to know about ZEN Camps products, we are comprehensively developing advertisements. In addition, by developing A+ content and visually conveying the appeal of our products,we have also achieved an increase in purchase rates. We are also focusing on building trust in the early stages of sales by utilizing the Vine program to obtain reviews.

Q: How do you use customer feedback to improve products?

A: We collect and analyze customer feedback on a daily basis, mainly through Amazon reviews, and we use them for improvements. For example, we respond to specific opinions as quickly as possible, such as opinions on storage and requests regarding materials, by changing specifications and improving packaging for the next lot. The content of the reviews provides hints not only for improvements to existing products, but also for future new product development.
4,900 JPY a month (excluding tax) + selling fees

Questions about the process and flow of new product development

We’ll answer some frequently asked questions about moving forward with new product development.
How long does it take to develop a new product?
That depends on the category and details of the product, but oftentimes, it takes as little as three months to as long as one year.

Therefore, during the product development process, it’s necessary to ask, “which steps are involved and how long will they take?”
Process and flow of new product development
(1) Needs segment research
(2) Come up with ideas for product development
(3) Set target and concept
(4) Planning concept for product development
(5) Manufacture prototypes (test products)
(6) Start selling and implement marketing strategies
Note that in many cases, the time frame for new product development is shorter for individuals than for companies, because they don’t have to spend as much time on internal planning and coordination.
How should ideas for new product development be generated?
When thinking about new product development ideas, be aware of the 5W1H for how that product will be used in specific situations.

In order to come up with ideas from various perspectives, the following 3 methods are also effective.
• Members from different departments and teams come up with ideas
• Coming up with ideas based on an analysis of companies in the same industry and needs research
• Coming up with ideas that center on feedback from customers

You can come up with ideas more efficiently if you think about the “purpose of new product development” first.
For example, if there’s a product with many complaints from existing customers, the idea is to move forward with new product development in a way that would eliminate those complaints.
Does Amazon have tools to help you develop new products?
Amazon offers the following 3 tools.
By utilizing these tools provided by Amazon, it is possible to analyze other companies in the same industry, conduct needs research, and analyze reviews from customers, etc., which can be useful for coming up with ideas for new products.

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