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The 4 Stages of Amazon Product Life Cycle

Why is it important to understand the Amazon product life cycle? If you are interested in selling on Amazon, it is crucial to research the market, demand, and competition.

For example, research will show whether the investment of time and money would be worth it for private label brands who develop their products.

Unfortunately, some eCommerce stores do not take the next step and focus on improving their product selection. They find a successful product and think that nothing else matters as long as they have the management skills to grow it further. But eventually, those businesses will be out of luck because there will always be competition.

To remain competitive, it is necessary to continue research on products and sell in-demand items.

Every product has a life cycle, and you can understand your products better by understanding where they are in their life cycle. Click To Tweet

Some products will go through stages like ‘born’ and ‘die’ and return.

Knowing the Amazon product life cycle will allow you to offer better product pricing, make better marketing decisions, and prevent dead stock.

4 Stages of Amazon Product Life Cycle

Every product has four stages of life:

Amazon product life cycle

1. Introduction

The product is new to the market, so it needs a lot of marketing for people to be interested. Products that are in the introduction stage usually have little to no competition. But because fewer consumers have heard about the product before, they need more convincing than what you’re selling them is worth their money.

2. Growth

The product is taking off, and other companies will likely copy the idea. When so many people are interested in this, they all have their spic wants – whether or not to buy something, what quality should be expected of a purchase like this one, which company offers the best deal for them. The demand for these products has grown exponentially, with no signs of slowing down anytime soon.

3. Maturity

The product has been around for a while, and many competitors have. The audience is aware of the product but still needs to be convinced that it’s better than they currently have. Marketing should focus on differentiating from other brands or models so customers can see why this one is worth their money.

4. Decline

When a product’s sales are decreasing, it may be because the market has moved on to newer and better ideas. In this case, marketing should convince customers that what they have is worth buying while there is time left before production ends.

The product life cycle is an essential factor in developing a new product. Products go through four stages of development: introduction, growth, maturity, and decline.

A good example is the Apple iPod. When it was first introduced in 2001, Apple convinced people that they needed it. It reached growth quickly and remained at maturity until 2015. As smartphones develop bigger storage space, fewer customers feel the need to own an iPod. As a result, Apple released the last iPod iteration in 2015, and sales have declined ever since.

Fads and Trends

Fads and trends are products that move through the stages of introduction, growth, maturity, and decline very quickly.

For example, in January 2017, fidget spinners were introduced to stores which soon accounted for nearly 17% of all online toy shops by March. However, sales and interest had dropped significantly by June, meaning they were just a fad. 

Evergreen Products

Some products stay in the maturity phase for a long time (several years or decades). For example, oxford shoes will not go out of style anytime soon.

Charting Amazon Product Life Cycle

To make good decisions about your product, you need to understand where it is in its life cycle. It would help if you considered these factors:

  • Growth – a product with a heavy upward growth is growing, while one with steady profits is mature
  • Competition – Is the market saturated?

In most cases, you can quickly determine where a product is in its life cycle. However, different types of products move through their life cycle at different speeds.

For example, many electronics have an average lifespan from 18 to 24 months before they are no longer being sold and replaced with newer models because people want the latest technology available.

Meanwhile, products related to fashion might be tied to one season. Other products, like vehicle parts and accessories, might be linked to the vehicle’s lifespan. 

Inventory Management Techniques to Handle Product Life Cycle

Knowing your product’s life cycle is vital because it will help you maximize sales, reduce costs, and manage inventory.


When a product is new, it needs to be priced low for people who need it but don’t know about it yet. Products that are popular and well-known can charge more because they have competition from other products like theirs.

Amazon product life cycle


Product lifecycle management (PLM) will help you forecast demand so that your supply matches up with customers’ needs. To put it simply, it will help prevent overstocking and understocking. This is especially important when products are first introduced or near their end-of-life.

  • Introduction – New products are risky, but data shows that they make up an average of about 27% of total sales. When new products first come out on the market, you have to rely on marketing insight and demand prediction for them to be successful. This is not always possible because it relies heavily upon creativity rather than history or experience with similar items. If your product replaces a previous one that has been around for a while (similar function), then tracking its life cycle can help predict future demand.
  • Growth – Products in this stage are usually in high demand and (unless they’re a fad or just a trend) aren’t likely to die out quickly. Purchasing larger inventory volumes to meet the increased demand can help cut costs and prevent selling out.
  • Maturity – Inventory management should be directed at meeting a steady demand and should be aimed at balancing order costs and storage costs.
  • Decline – Stock must be phased out, orders must be smaller, and possibly adopting Just in Time inventory (purchasing the minimum amount of stock, just enough to meet demand) to help reduce risks.


As a business owner, it is essential to consider that the product life cycle affects demand and customer perception. There are also many marketing strategies you can use to extend the lifespan of your product or create new niches for yourself.

  • Introduction – You should convince consumers that your product has value. 
  • Growth – Offer a product that meets or exceeds customer expectations. Market the brand, reliablity, quality, and product selling pointsroduct.
  • Maturity – Differentiate a product from the competition through pricing, packaging, quality, etc. Use coupons to drive sales. Add new features, styles, colors, and versions to prolong the product’s life.
  • Decline – Pitch the product to customers based on demand. Focus on the pricing, availability, and need for the development.

As the product changes, so do marketing. Marketing successful marketing techniques in one stage may not be as effective at other stages of a product’s life cycle because public perception also changes with time. The more you research new tactics to market your product, the better it’s chance for success.

Final Thoughts on Amazon Product Life Cycle

Changes can occur due to trends, new technologies, and changing ideologies. These changes affect product demand. A shift in perception may cause an up-and-coming product to decline without warning or notice.

The key to selling products is knowing when to retire old items, continue marketing for existing items as they age, and anticipate changes in the market. This can be done by researching sales data and product life cycles.

Understanding Amazon’s product life cycle can help businesses make better decisions about their products, manage inventory, reduce costs, and improve sales. Click To Tweet