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What is Amazon Born to Run program

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What is Amazon Born to Run program

Posted by seo team | November 20, 2024
Amazon Born to Run program

TL;DR

  • Amazon Born to Run is an invite-only program for vendors to jump-start product launches.
  • Vendors request initial inventory for new products, aiming for 10-week sell-through.
  • If unsold, vendors either refund Amazon 100% plus 10% fee or pay 25% retention fee.
  • Participation limited to existing ASINs, no new ASIN creation allowed.
  • Total Launch Buy Quantity value cannot exceed $50,000; product cost must be at least $5.
  • Program helps with stock availability but doesn’t guarantee sales or rankings.

 

Selling on Amazon as a third-party seller and selling as a first-party vendor are two entirely different things. 

 

When launching a new product on Amazon, vendors face the challenge of building sales velocity and convincing Amazon to buy inventory. As a seller, you have the freedom to list as many products as you want and rely on a robust product launch strategy to get your offerings in front of Amazon’s vast customer base. However, the scenario is quite different for vendors. Vendors are at the mercy of Amazon’s purchasing decisions, often waiting for the company to place an order before their products can gain traction.

 

This is where Amazon’s “Born to Run” program steps in. Designed to alleviate some of the hurdles vendors face, the Born to Run program offers a unique opportunity to boost the momentum of new product launches or promotional ASINs without the risk of stockouts. Essentially, it allows vendors to jump-start their sales and create a buzz around their products, all while minimising the usual risks associated with running out of inventory.

 

In this blog post, we’ll go through everything you need to know about the Born to Run program—what it is, how it works, and why it might just be the game-changer vendors have been waiting for. Keep reading!

 

Quick guide

 

What is the Amazon Born to Run Program?

Amazon Born to Run is an exclusive, invite-only program designed for Amazon Vendors. It allows vendors to proactively request an initial inventory order from Amazon instead of passively waiting for Amazon to place an order. This is particularly useful for vendors launching new products that don’t have any sales history yet.

 

Here’s how it works: Vendors estimate how many units they expect to sell over a 10-week period and submit this forecast to Amazon. If Amazon approves the request, they will purchase the specified amount of inventory upfront, giving the product a strong start.

 

This program helps vendors overcome the typical low sales forecast for new products, which would otherwise result in smaller initial orders from Amazon. By participating in Born to Run, vendors can boost their product’s visibility and sales potential right from the start.

 

How the Born to Run Program works

Let’s say you’re a vendor launching a new organic tea brand. You believe your tea will be popular, but since it’s new, Amazon’s system doesn’t have any sales data to predict its performance. Normally, Amazon would order just a small batch of your tea to see how it sells.

 

But with the Born to Run program, you estimate that you can sell 1,000 units of your tea in the first 10 weeks. You submit this request to Amazon. If Amazon approves, they’ll purchase the full 1,000 units from you right away. This allows you to stock up their warehouses and ensures your product is readily available for customers, without the risk of running out of stock too soon.

 

This way, you get a head start on building momentum for your product, and Amazon can meet customer demand without the delays of reordering.

 

Here’s how it works in detail:

  • Requesting an order: Invited vendors estimate how many units they believe will sell within a 10-week period and submit this figure to Amazon. This number is referred to as the “Launch Buy Quantity.”
  • Amazon’s approval: If Amazon approves the request, they will purchase up to the specified quantity and stock it in their warehouses, ensuring that the product is readily available for customers.
  • Sell-through period: The 10-week sell-through period begins 20 days after the Born to Run submission date. During this time, Amazon monitors how well the product sells.
  • Handling unsold stock: If some of the ordered stock remains unsold at the end of the sell-through period, the vendor has two options:
    • Return the goods: Amazon can return all unsold units to the vendor. In this case, the vendor must refund 100% of the product cost for the returned units and pay an additional 10% fee to cover shipping and handling costs.
    • Retention option: Alternatively, Amazon can keep the unsold units, and the vendor must pay a retention fee equal to 25% of the cost of the unsold units. This allows Amazon to continue holding the inventory.

 

What are the eligibility requirements for the Amazon Born to Run program?

Wondering if you can join Amazon’s exclusive Born to Run program? Here are the main eligibility requirements you need to meet:

    • Amazon vendor status: Only first-party sellers who are members of the Amazon Vendor program can participate. If you’re not an Amazon Vendor, this program is out of reach.
    • Invite-only access: The Born to Run program is not open to everyone. It’s an invite-only opportunity, and Amazon uses undisclosed criteria to determine which vendors get the invitation.
  • Product criteria:
    • Launch buy quantity limit: The total value of the requested initial order, known as the Launch Buy Quantity, cannot exceed $50,000.
    • Minimum product cost: Each ASIN enrolled in the program must have a unit cost of at least $5.
    • Product restrictions: The products must not be heavy, bulky, or classified as dangerous goods. This ensures that the items are manageable for storage and shipping.
  • Pre-approved ASINs: You cannot create a brand-new ASIN for the program. All ASINs submitted must already be created and approved before you can apply for Born to Run.

 

Amazon’s official stance on the selection criteria is quite vague. They state:

“We impose certain operational, profitability, and other requirements and checks which we continually iterate on in order to ensure that Born to Run provides the optimal vendor experience and outcomes for us.”

 

In other words, the selection process remains largely opaque. However, if you do receive an invitation, it’s a sign that Amazon sees potential in your products and wants to help you scale more quickly. So, make sure your products meet all these requirements and keep an eye on your inbox for that golden ticket!

 

How to apply for the Amazon Born to Run program

Currently, there is no direct application process for the Amazon Born to Run program as it is strictly an invite-only initiative. Amazon selects vendors based on various criteria related to operational efficiency, profitability, and other internal checks

 

While Amazon hasn’t publicly shared the exact requirements, they have stated: “We operate an invite-only program, and we impose certain operational, profitability, and other requirements and checks which we continually iterate on in order to ensure that Born to Run provides the optimal vendor experience and outcomes for us.”

 

What can you do?

  • Optimise your vendor performance: Ensure that your vendor account is in good standing, with a strong track record of sales and operational efficiency.
  • Maintain healthy relationships: Keep open communication with your Vendor Manager, if you have one, and express your interest in scaling new product launches.
  • Monitor your email: If you meet Amazon’s internal criteria, you may receive an invitation directly to your registered email address.

 

While the process may seem elusive, being proactive about maintaining a high-performance vendor account increases your chances of getting invited. Keep optimising and be prepared for when the opportunity arises!

 

Pros and cons of Amazon Born to Run program

 

Benefits Disadvantages
Boosts initial sales momentum by providing a strong inventory start for new products. Risk of unsold inventory if the product doesn’t sell as expected.
Prevents stockouts during the crucial launch period, ensuring product availability. Vendors must handle the cost of unsold units, either through returns or a retention fee.
Increases product visibility, helping new products without sales history get noticed quickly. Limited to existing ASINs; new ASINs cannot be created specifically for the program.
Supports marketing efforts by ensuring enough inventory to meet promotional demand. Participation is invite-only, making it inaccessible for many vendors.
Reduces the challenge of conservative initial forecasts for new products. Financial commitment required to cover costs of unsold inventory if sales don’t meet expectations.

 

Amazon Born to Run program FAQs

 

Q1: What happens if my product doesn’t sell as expected during the 10-week period?

If your product doesn’t sell through as expected, you have two options:

  • You can accept the return of unsold inventory and pay Amazon a 10% handling fee in addition to refunding 100% of the product cost.
  • Alternatively, you can let Amazon keep the unsold units by paying a 25% retention fee on the cost of those units.

 

Q2: Can I create a new ASIN specifically for the Born to Run program?

No, you cannot create new ASINs for this program. All ASINs must be pre-existing and approved in the system before being submitted for Born to Run. You must have the ASIN ready and compliant with Amazon’s guidelines prior to making your request.

 

Q3: How does Amazon decide the approval of my Launch Buy Quantity request?

Amazon evaluates the request based on various factors, including your historical sales data, product type, and the proposed Launch Buy Quantity. They consider operational capacity and potential market demand but do not disclose specific approval criteria. You may not always get the full quantity requested, as Amazon balances their inventory risks with your proposed forecast.

 

Q4: What types of products are ineligible for the Born to Run program?

Products that are heavy, bulky, or classified as dangerous goods are ineligible for the Born to Run program. Additionally, products that are regulated or have shipping restrictions may not qualify. Amazon’s eligibility criteria focus on products that are easier to store, handle, and sell through quickly.

 

Q5: What happens if I exceed the $50,000 Launch Buy Quantity limit?

If your requested quantity exceeds $50,000 in value, Amazon will not approve the request. You’ll need to adjust your quantity or select different ASINs to meet the program’s criteria. Keep in mind that even if your total is under $50,000, Amazon may still approve a lower quantity based on their own evaluation.

 

Q6: Can I use the Born to Run program for seasonal products?

Yes, you can use the program for seasonal products, but you need to carefully plan your submission. Make sure your 10-week sell-through period aligns with the peak demand for your product. If your product is seasonal, missing this window could lead to unsold inventory and additional costs.

 

Q7: What support can I expect from Amazon during the Born to Run period?

Amazon doesn’t provide specific additional support for marketing or advertising under the Born to Run program. However, having more inventory available may improve your product’s visibility and ranking in search results. It’s up to you to complement this with your own marketing efforts to maximise the sell-through rate.

 

Q8: Can I adjust my Launch Buy Quantity request after submission?

Once you submit your Launch Buy Quantity request, you cannot adjust it. Be cautious and realistic with your estimate. Overestimating could lead to excess inventory costs, while underestimating could limit your sales potential during the launch period.

 

Q9: Will participating in Born to Run guarantee better sales or higher rankings?

Participation in the Born to Run program can help with product availability and visibility, but it does not guarantee sales or better rankings. The success of your product still heavily depends on your overall marketing strategy, product quality, and demand in the market.

 

See you next week!

We hope this article has provided you with a clearer understanding of the Amazon Born to Run program and how it can benefit your business. 

 

As a vendor, managing your account effectively is crucial, and it can often be challenging to keep up with all the tasks involved. If you need any assistance—whether it’s optimising your listings, managing inventory, or enhancing your overall vendor performance—our team of Amazon Vendor Central consulting experts is here to help you navigate these complexities and achieve your business goals. Feel free to reach out anytime for support and guidance tailored to your needs.