“Vendor, we were born to run” - Improving new product launches via Amazon's Born to Run Program
All Vendors have felt it. You have a new product you know will sell well but Amazon isn’t so convinced so they only order a limited number of them, to your dismay. You miss out on more sales because it becomes out of stock way too quickly and distributions are too slow to keep up. Obviously as a Vendor you are annoyed about the missed opportunity. Yet there is a little-known program that can help you make a big difference during this process named Born to Run.
Amazon usually waits until new products start selling well before buying a large quantity of said items off Vendors. This means that launching new products can be a costly and slow process. Enter Springsteen’s 1975 classic; Born to Run, or rather Amazon’s program that shares the same name.
Simply put, the Born to Run Program is a fast-track service that allows Vendors to sell an initially large bulk of a newly launched product to Amazon in exchange for full return rights on all unsold products and an investment in Amazon’s Sponsored Ads. Vendors can decide the initial quantity of the product to send to Amazon which is called the Launch Buy Quantity (LBQ). Vendors pay 10% of the LBQ cost for Amazon Advertising. For example, if a new product costs $10 and Amazon agrees to buy 1000 units then you would only have to pay $1000 for the use of Amazon Advertising.
Born to Run ultimately lets Vendors prove to Amazon that their products are worth buying meaning that Vendors can launch new successful products quicker and more efficiently than ever before. By launching products with a fully-in stock inventory, ASIN sales won’t be hindered by going out of stock almost immediately.
As if this wasn’t enough to pique your interest, if Amazon sees the ASIN receiving sales traction before the 10 weeks are up, the algorithm may even decide to place an order for more of the product during the enrolment. This means an extremely successful product will bring in sales much earlier on than if sales were garnered naturally.
Does my new product qualify for “Born to Run”?
- Vendors must be using Amazon Advertising for at least 90 days to drive product visibility.
- The ASIN cannot be considered: a hazmat, heavy or bulky, or cost less than $5 / unit.
- The product/unit must be considered “new” by Amazon – meaning the item cannot be sitting in a Fulfilment Centre for more than 30 days.
- The total product cost of the LBQ (the unit quantity the vendor wants to launch) cannot exceed $50,000.
If possible, it would be a great idea to enrol your new products onto the Born to Run Program and run it in parallel with Amazon Vine to drive further sales after the 10 weeks are over via increased sales and reviews.
At this time the programme is invite-only however those with contacts may be able to ask their Vendor Manager to be invited. Do not worry if you do not have a contact though as we are more than happy to use ours, feel free to give us a call and we can help make it happen.