Looking for a way to get your business started on Amazon? Well, look no further!
Amazon created their Born to Run Program, which is designed to help businesses of all sizes get started on the ecommerce giant. But, what is Amazon Born To Run, exactly?
In this article, I will discuss what the Born to Run Program is and how it can help you achieve your business goals. If you are interested in learning more about this program, or if you want to apply, keep reading!
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All vendors know how challenging it is to get started on Amazon.
The platform is huge with a lot of competition from different brands, making it difficult for new businesses to get their products in front of potential customers.
This is where the Born to Run Program comes in!
Amazon’s Born To Run Program is a business acceleration program that helps businesses get started on Amazon.
The program, available through Amazon Vendor Central, enables you to sell more of a product’s initial stock to Amazon.
When you sign up for the program, you get to choose the “Launch Buy Quantity”—the number of units you anticipate selling in the first ten weeks—and if you’re approved, Amazon will buy the total value of those units from you.
At first, Amazon had a requirement where vendors in this program had to spend 10% in ads under Amazon advertising, but this is no longer mandatory since February 2020.
As of writing this article, Born to Run advises vendors to advertise however they feel will increase their product sales traction.
For Amazon sellers, this program offers two significant advantages:
1. You no longer have to be concerned about “out of stock” issues with newly launched products if they become tremendously popular.
2. Even before the ten-week period has passed after the product launch, Amazon may place continuing orders of your product if they notice that it is selling notably well.
As I have mentioned, the program is available to vendor managers through Amazon Vendor Central. Usually, Amazon will hold off on sourcing a sizable quantity until your product demonstrates that it can sell.
However, with the Born to Run program, you and Amazon enter into a contract that calls for them to purchase a sizable quantity of your product at the outset for a ten-week period.
Therefore, if you anticipate selling a large inventory of your product, Amazon will have an adequate supply to meet demand and prevent “out of stock” issues. This gives your business a big boost after your product launches.
This is a great offer for vendors looking to kick-start sales of goods they anticipate being well-received. Amazon necessitates vendors to consent to full return rights on all unsold goods in order to reduce the risk.
This implies that any unsold stock after the 10-week sell through period will probably be given back to the vendor.
Nevertheless, Amazon might give you the choice of a retention fee, in which case you consent to grant them a 25% discount on the residual stock if you don’t get enough product orders.
For example, if Amazon buys 4000 units of your product and the products have a high sell through, they will order more stock.
However, if for instance you launch the products and only 3000 units sell, you have the option of paying a retention fee on the 1000 unsold units or Amazon can return the remaining products to you.
There are several benefits of the Born To Run Amazon program. These include:
- A larger initial order from Amazon, which can help you boost your sales rank and reviews. The program is designed to help businesses get started on Amazon by providing them with an opportunity to sell a large quantity of their product.
- Reduced risk for you as a vendor. Since Amazon is buying the product from you, they are taking on the risk instead of you. This can help you feel more confident about your product’s success. The program also offers full return rights on all unsold goods, which reduces the risk for vendors.
- No requirement to spend money on ads. In the past, Amazon required vendors in this program to spend at least 10% of their total order value on ads. However, this requirement was removed in February 2020.
- The ability to forecast your inventory needs more accurately. Since you know how much Amazon is buying from you, you can better forecast your inventory needs. This can help you avoid stockouts and other issues.
- Increased exposure for your product on Amazon.com. When you participate in the program, your new product will be featured on Amazon.com, which can help increase its visibility and sales velocity.
There are a few potential downsides to the Amazon Born To Run program that you should be aware of:
You might have to pay a retention fee on unsold inventory. If you don’t sell all of the new products that Amazon buys from you, you may have to pay a retention fee if you choose not to take back your products. This fee is typically 25% of the total cost of the product.
There is no guarantee of success. Just because you participate in the program doesn’t mean that your new product will be a success. You still need to create a quality product and ensure you are marketing it effectively.
As you can see, there are both potential benefits and drawbacks to the Amazon Born To Run program. It’s important to weigh these factors carefully before deciding whether or not to participate in the program.
If you’re considering participating in the Amazon Born To Run program, it’s important to choose a product that is likely to be successful. Here are a few factors to consider when choosing a product:
- The product should be well-made and have a high level of quality.
- The product should be unique or offer something that other existing products don’t.
- The product should be in a high-demand category.
- The product should have potential to be a top seller in its category.
It’s also important to make sure that you have a good supply of the product. You don’t want to run out of stock after Amazon places its initial order.
If you’re not sure whether your product is a good fit for the Amazon Run program, you can always contact Amazon and ask for more information.
This Amazon program is not open to all sellers. You must be invited by Amazon to participate in the program.
To be considered for the program, you need to meet the following eligibility requirements:
- For a minimum of 90 days, the vendor must be utilizing Amazon’s advertising program.
- The ASIN is ineligible for: a hazmat, be large or cumbersome, or be less than $5 per unit
- The vendor’s desired unit quantity for launch, or LBQ, cannot have a total product cost greater than $50,000.
- The item needs to meet Amazon’s definition of “new.”
It’s actually very simple to get your product on this program if you meet all of these requirements. Here are steps to follow:
Step 1: Go to the Vendor Central portal and log into your vendor central account.
Step 2: Click on “Orders”
Step 3: Click on “Vendor Initiated Orders”
Step 4: Choose “Born to Run”
After you’ve submitted your application for Born to Run, you can check Vendor Central to see how it is progressing.
While it may take up to 2 business days to appear, a PO (purchase order) is typically generated the very same day. The only things left to do are to make sure your warehouse team is prepared to process the order right away and to run program work, and that you have sufficient stock of the ASIN(s).
Yes, the Born to Run program is an invite-only program because it is not open to all sellers. You must be invited by Amazon to participate in the program.
To be considered for the program, you need to meet the requirements. It is also worth noting that you have to submit your application to join the program.
There is no fee to join the program when launching your new products.
However, if you don’t sell all of the products that Amazon buys from you, you may have to pay a retention fee if you choose not to take back your products. This fee is typically 25% of the cost of the product.
Just like selling any product on Amazon, there is no guarantee of success. Just because you participate in the program doesn’t mean that your product will be a success. You still need to create a quality product and market it effectively.
Here are a few tips on generating sales when launching your products:
- Create a quality product: Make sure your product is well-made and offer something unique.
- Optimize your product listing: Incorporate relevant keywords on your product listings so they reach potential buyers.
- Set a competitive price: Be sure to price your product competitively to attract buyers, especially on prime day.
- Run ads and promotions: Ads can help increase visibility for your product and boost sales maturity.
If you are unable to sell all of the inventory units that Amazon buys from you, you may have to pay a retention fee for unsold products if you choose not to take back your products for a full refund. This fee is typically 25% of the cost of the product.
This is why it is best to sell products that are in high consumer demand for high sales velocity. Have this in mind when determining how many units to sell to Amazon as your launch buy quantity.
The Amazon Born to Run program is a great opportunity for brand sellers who want to get their products and brand in front of Amazon’s millions of customers.
If you think your product has the potential to be a top seller, then I strongly recommend you apply to the program.
Just be sure to meet all the requirements and have a good supply of the product before you launch products.
Do you have any questions about the Born to Run program? Let me know in the comments below! I’ll be happy to help.