Coming up with a great product idea is tough—bringing that product to life can be even tougher. That’s why many businesses turn to product development companies for assistance.
These companies—from renowned design consultancies to tech giants to management consulting firms—can help you turn a whisper of an idea into an actual, tangible product. They can also refine an existing product to fit your customers’ needs.
What are product development companies?
Product development companies help turn ideas into real products that your brand can sell. They bring together experts from different areas like engineering, design, marketing, and manufacturing to handle the whole process from start to finish.
The product development process includes:
- Coming up with product ideas
- Researching what customers want
- Creating prototypes (early versions)
- Testing with real users
- Launching the final product
A product manager often leads this work. They coordinate between different teams, keep track of schedules, respond to what customers want, and make sure the product matches the company’s goals.
The main benefit of working with a product development company is getting all the help you need in one place instead of working with many different vendors.
What do product development companies do?
Product development companies devise new ideas based on what clients want or what’s missing in the market.
For example, a tech startup might hire a product development company to come up with ideas for wearable health devices. Together, they would explore different sensor options, how users might interact with the device, and what would make it stand out from other products.
They usually work through these steps:
- Ideation.These companies brainstorm innovative concepts based on client vision or market gaps. They bring together a team of experts across different disciplines to develop practical solutions.
- Market research. They then analyze competitor products, consumer preferences, and industry trends. Research determines potential market demand, pricing strategies, and essential features.
- Product design. Designers turn concepts into detailed drawings or digital models. They focus on creating innovative products that balance appearance, functionality, and user experience.
- Prototypes. Teams build initial versions to test the product in real-world conditions. They quickly make improvements based on feedback before moving to production.
- Manufacturing. Experts manage production logistics, source quality materials, and partner with reliable factories. This guarantees that all products meet safety regulations and quality standards.
- Product testing and QA. Companies conduct thorough testing through lab tests and user trials. The process identifies and resolves any issues before market release.
- Management and coordination. Product managers organize teams and timelines to maintain progress. They keep communication flowing between all stakeholders throughout development so everyone is working toward the same vision.
- Product launch. Marketing teams develop strategies for retail partnerships and sales channels. They build excitement through launch events, press releases, and promotional campaigns.
- Post-launch support and improvement. Companies gather customer feedback to refine the product after release. They plan updates or new versions based on usage and changing customer needs.
5 types of product development in ecommerce
- New product launch
- Product line expansion
- Product enhancement
- Private label
- Bundling and cross-selling
Online businesses need effective product development strategies to stay competitive. Here are five key approaches to create or improve products for your ecommerce business.
1. New product launch
The new product development process means creating something completely new that doesn’t currently exist.
This type of product development:
- Offers something fresh that solves a problem
- Lets your brand stands out as innovative
- Gets you ahead of competitors by being first
A new product launch comes with testing, as Gyve Safavi, co-founder of sustainable toothbrush brand SURI explains: “We did quite a few iterations, probably like 20 iterations, before we launched. We did testing with dentists and sustainability experts early on. We did like a 500 batch, then a 1,000 batch, and then as we’ve launched, we’re constantly iterating the inside of the brush. The main thing for us was that we needed to achieve minimal lovable product, and through our testing we launched finally when we were, like, people actually do enjoy this.”
💡 Example: A company notices people working from home have uncomfortable setups, so they create an adjustable laptop stand with cooling features marketed as the perfect home office solution.
2. Product line expansion
A product line expansion is adding new versions, colors, sizes, or related items to what you already sell. This strategy helps you business because:
- You can reach more types of customers
- Existing customers might buy additional items
- It’s often cheaper than creating something completely new
💡 Example: A brand that started selling yoga pants adds sports bras, jackets, and headbands so customers can get all its workout gear in one place.
3. Product enhancement
A product enhancement means improving products you already sell by upgrading the design, materials, packaging, or features. It keeps current customers happy and engaged, and keeps you up with competitors.
💡 Example: A skin care company updates its popular moisturizer with eco-friendly ingredients and less plastic packaging to show customers it is prioritizing sustainability.
4. Private label
Another type of product development is private labeling, or selling products that someone else manufactures exclusively for your business. You control how the products look and feel, while working with manufacturers that have expertise in your market.
💡 Example: An online vitamin shop starts selling supplements with its own label instead of other brands, allowing for unique packaging and consistent quality.
5. Bundling & cross-selling
Product bundling is packaging related items together as a set or suggesting additional products that go well together. It creates new value for customers and helps adapt products for different markets and regions.
💡 Example: A cooking brand sells a chef’s knife, cutting board, and apron together as a set. Someone looking for just a knife might buy the whole bundle because it offers a better value.
19 top product development companies
- Design 1st
- LA NDPT
- StudioRed
- Goddard Technologies
- Ranosys
- Simplexity
- AJProTech
- Ziba
- Smart Design
- IDEO
- Whipshaw
- Speck Design
- Accenture
- ARC Technology Solutions
- BiTE Interactive
- Frog
- Abalta Technologies
- Brash
- Code and Theory
A bevy of companies offer product development services to businesses in different industries. Most have specialties, including physical product development, software development for digital products, web development, mobile app development, and service product development.
Each product development company comes with its own unique degree of technical expertise. For instance, a custom software development company is more likely to know the intricacies of microchip architecture than an industrial design company.
Here are 19 established firms with strong reputations in their respective industries:
1. Design 1st
Design 1st offers a comprehensive range of services including industrial product design, UX design, engineering, and manufacturing.
Design 1st’s product management portfolio covers many industries, from medical devices to consumer electronics. Notable clients include Momentum IoT, Armstrong Pumps, and NASA. The company serves as a comprehensive resource to startups and established businesses alike.
2. LA NDPT
LA New Product Development Team (LA NPDT) is a product development company that turns innovative ideas into market-ready products. Based in Ruston, Louisiana, it offers a range of services, including product design, prototyping, manufacturing preparation, and product marketing support.
Its interdisciplinary team consists of engineers, designers, and product development specialists who work with both startups and established businesses. LA NPDT follows a structured, 10-stage development process to ensure quality and market readiness for all projects.
3. StudioRed
StudioRed is an award-winning product development consultancy based in Palo Alto, California, with more than 40 years of industry experience. The company offers comprehensive services including industrial design, mechanical engineering, UX/UI design, and prototyping.
StudioRed has completed more than 4,000 successful projects, won over 200 international design awards, and maintains a remarkable 90% client return rate.
4. Goddard Technologies
Goddard Technologies is an engineering, industrial design, and low-volume manufacturing company. It specializes in medical devices, industrial automation, robotics, and consumer products.
Certified with more than 25 years in business, Goddard helps clients navigate FDA regulations while accelerating time to market. Its teams support all development phases, from prototyping to manufacturing.
5. Ranosys
Ranosys has headquarters in Singapore and additional offices in Jaipur, Bikaner, and Pune. The brand offers end-to-end product development services focusing on design thinking and rapid delivery.
The process includes product consulting, roadmap development, implementation, and thorough testing. Using an agile methodology, Ranosys guides clients from concept to release while continuously enhancing products based on feedback and product trends.
Ranosys serves diverse industries like retail, financial services, health care, and education, with an impressive client portfolio featuring Fortune 500 companies like Berkshire Hathaway, Shell, and BlackBerry.
6. Simplexity
Simplexity helps companies design and build complex products that work better through simplicity. Certified in medical device standards, Simplexity has created products since 2005.
Based in San Diego, Portland, and Seattle, it has engineers with more than 20 years of experience and holds over 200 patents. The brand works with many industries, including robotics and medical device manufacturing, as well as with manufacturers of consumer products.
7. AJProTech
AJProTech makes electronics like smart devices, headphones, and health tools. Its team of 45 engineers works from offices in Los Angeles, Taiwan, and Kazakhstan. It’s built over 55 different products with more than 400,000 units made, for combined sales of over $50 million.
The company handles everything, including designing the electronics, creating the outer shell, writing the software, and setting up manufacturing. It charges a set price and promises to fix any bugs for a year.
8. Ziba
Ziba delivers solutions at the intersection of a company’s brand, target consumer, and organization. Its track record includes more than 250 design awards, 3,452 completed projects, more than 15,000 research participants, and 276 patents.
Ziba offers services spanning product strategy, insights, design, and development across physical and digital experiences, helping clients like Alaska Airlines, Procter & Gamble, Adidas, and AARP.
9. Smart Design
Smart Design is a strategic design company in Brooklyn. It works across diverse industries, including health care, technology, consumer goods, financial services, sports and fitness, and mobility. Its client portfolio includes major brands like Gatorade, Meta, Amplifon, and Schneider Electric, with product development projects ranging from health care innovation to digital well-being solutions.
10. IDEO
IDEO is a global design company that helps businesses develop exceptional services, products, experiences, and overall brands. The company deals with everything from product design to mission focus, depending on your needs.
For instance, Omada Health began as an internal IDEO research project and expanded into a behavior-driven development company in the health care space. It’s since enrolled more than one million lifetime members. In another initiative, IDEO worked with Sephora to reimagine the in-store experience for digital-first shoppers.
11. Whipsaw
Whipsaw combines creative thinking with practical know-how to create products that people want. It has completed more than 1,000 projects, earned 700 patents, and won 325 awards for their work.
Started by Dan Harden (who used to lead Frog Design) and Bob Riccomini, the company began over 25 years ago from its base in San Jose, California. It’s created many successful products, like the Gridstack storage system, IonQ quantum computer, Owala water bottles, and scientific equipment for PacBio.
12. Speck Design
Speck Design is a product design company that specializes in the medical, retail, telecommunications, robotics, and transportation sectors, with more than 250 projects completed and more than 200 patents.
Services include product development strategy, design strategy, innovation strategy, market research, brand design, industrial design, packaging design, UX design, and engineering expertise across various industries.
13. Accenture
Accenture is a vast firm with a significant product development division. It offers product design, strategy, and engineering services. Accenture also helps businesses sustainably, efficiently, and environmentally scale up product manufacturing. Accenture partners with digital providers, like Microsoft and Google Cloud, to provide a wider suite of services.
14. ARC Technology Solutions
ARC Technology Solutions is a full-service product development firm and engineering partner. ARC’s internal team offers expertise in aerospace, automotive, aviation, defense, electronics, heavy equipment, and transportation. Its product managers have the resources to support enterprise organizations that demand high-quality products.
15. BiTE Interactive
BiTE Interactive, a specialized software development firm, excels in creating mobile apps with a unique value proposition, which sets it apart from other product developers who also venture into web applications.
Focused solely on mobile applications, BiTE serves a diverse range of industries, including connected vehicles, life sciences, FinTech, agriculture, and aerospace.
16. Frog
Frog aims to offer fresh ideas and unique solutions to bringing its client’s products to life. Its client base includes software development companies like Applied XL, automotive manufacturers like Volvo, and consumer products retailers like IKEA.
Frog’s offerings include thorough research, rapid prototyping, growth strategizing, and marketing support, among other services.
17. Abalta Technologies
Abalta Technologies has a steep track record, with more than 100 global customers and 800 successful program launches. Abalta specializes in mobility software and is a leader in navigation and mapping applications. Its midsize team of information technology specialists helps businesses create products that prioritize quality and customer experience.
Abalta’s signature product is WebLink, which projects smartphone apps from Android and iOS devices onto in-vehicle touch displays. Other existing products center around mapping data, and you can use these to support mapping in software programs you develop.
18. Brash
Brash is a product development company that offers a comprehensive array of services including brand development, industrial design, UI/UX design, mechanical engineering, PCB design, and manufacturing. Brash’s diverse portfolio spans from a dental health app to houseware collections.
19. Code and Theory
Code and Theory specializes in information technology. Its clients include Marriott, Yeti, Volvo, Amazon, and Adidas, among major brands. Its holistic approach to product development helps align all elements of the product development process, from market research to software engineering to marketing. Ad Age named it the best transformation agency of 2024.
When should you hire a product development company?
Hiring a product development company at the right time can make operations smoother and your business more successful. Here are key times when hiring specialists helps:
- Launching new ventures. A product development team can handle everything from testing your idea to planning your market entry. They help you avoid expensive mistakes and increase your chances of success.
- Upgrading existing products. Product specialists can add new features or improve core elements of what you already sell. This keeps your product lines aligned with your business goals and what customers want.
- Redesigning product offerings. External teams can update your product’s appearance or functionality when consumer preferences change. They accomplish it without interrupting your day-to-day business operations.
- Extending product lines. Development companies can guide you when you’re ready to enter related markets or add new features to existing products. They help you create variations or service bundles that strengthen your overall offerings.
- Scaling business operations. Specialized teams can improve your manufacturing, optimize how you get products to market, and maintain quality standards.
7 factors to consider when hiring a product development company
- Industry expertise and experience
- Technical skills and innovation
- Project management and communication skills
- Scalable solutions
- Budget and cost
- Project timeline
- Availability of post-launch support
Consider these seven factors when evaluating companies, especially if you’re new to online selling:
1. Industry expertise and experience
Look for partners who understand your specific market, whether its electronics or eco-friendly clothing. They should have a deep understanding of your audience—including how they shop and their pain points—as well as experience building the types of solutions you need.
2. Technical skills and innovation
Choose a forward-thinking company that keeps up with new technologies for your online store. They should know how to work with ecommerce platforms, build custom features (like product customizers or AR previews), and use data to improve the product experience.
3. Project management and communication skills
Clear updates and efficient planning ensure your products launch on time, especially when working across multiple teams and tools. Good partners set clear goals, manage timelines, and keep you informed about progress throughout the project.
4. Scalable solutions
If you expect rapid growth from crowdfunding or influencer partnerships, you need designs and systems to handle increasing demand. A good partner plans for growth from the start, making it possible to improve products and attract a global audience.
5. Budget and cost
Getting good value is essential when running an ecommerce business. While cheaper options seem attractive, experienced partners who can get you to market faster and ensure quality may provide better long-term value. Balance upfront costs against future earnings potential.
6. Project timeline
Seasonal trends and viral moments create important selling opportunities online. Make sure your partner can meet deadlines so you don’t miss holiday sales or lose momentum to competitors when timing matters.
7. Availability of post-launch support
Once your product is live in your store, ongoing help and improvements are important. Find a partner who can guide you through new features and extensions that enhance the shopping experience to keep your products relevant.
Product development companies FAQ
What are the major types of product development?
The major types of product development include new product launch, product line expansion, and product enhancement.
How do companies organize for new product development?
Companies organize new product development through teams that mix experts from different departments like design, marketing, and engineering. They follow step-by-step processes with clear milestones to move from idea to finished product.
How much do product development companies charge?
What product development companies charge varies widely, ranging between $50,000 to $500,000 depending on the complexity of your product and the services you require.
Why should you consider consulting with a product development company?
Consulting with a product development company can give you access to specialized expertise, resources, and innovative methodologies that can streamline the development process, mitigate risks, and ultimately enhance the success of your product.
