A smooth product launch is vital for the success of Amazon vendors, but Amazon’s algorithm doesn’t always automatically order new products. That’s where the Amazon Born to Run program steps in, empowering vendors to direct Amazon on how many units of a product should be ordered. However, Amazon also mitigates its risk in case these products don’t sell as expected.
In this article, we’ll break down how the Born to Run program works and weigh its pros and cons.
What is the Born to Run Program?
Born to Run (B2R) is a strategic program designed by Amazon specifically for its vendors. Unlike sellers, vendors can’t independently send products to Amazon and hope for sales. Instead, they depend on Amazon to place orders.
It’s not uncommon for Amazon to delay ordering new products, which can severely disrupt product launches. If Amazon doesn’t place a pre-order for these new products, their release could be delayed by weeks or even months.
This is where the Born to Run program proves invaluable. The program’s goal is to assist vendors in launching new products more efficiently. By signaling to Amazon that a product is expected to perform well, vendors can prompt Amazon to purchase a specified quantity.
How Does the Amazon Born to Run Program Work?
Born to Run allows vendors to request a specific order quantity based on anticipated sales over a 10-week period. If approved, Amazon will place an order for up to that amount. However, this comes with a catch: vendors must agree that unsold stock can be returned or kept by Amazon after the sales period.
To use the program, you need an invitation from Amazon. This is usually received through your Vendor Manager. Once invited, products can be submitted in four steps under Vendor Central:
- Navigate to Vendor Central > Orders > Vendor-Initiated Orders > Born to Run.
- Provide the ASIN and the quantity you want to submit.
- Submit the request for Amazon’s review.
Please note that all ASINs submitted must be created and approved beforehand. The agreement is entirely on Amazon’s terms, including their right to return unsold stock after the 10-week sell-through period, which begins 20 days from your Born to Run submission date.
If you overestimate your order:
- Returns: Amazon will return the unsold units, and you must refund the entire cost of these units plus a 10% handling charge.
- Retention: Alternatively, Amazon will keep the unsold stock, but you’ll incur a 25% retention fee.
These terms highlight the program’s benefits and potential drawbacks.
Eligibility Criteria for Amazon’s Born to Run Program
Here’s who can join the Born to Run program and what you need to know:
- Vendor Status: You must be a first-party seller and part of the Amazon Vendor program.
- Order Limits: The total value of the Launch Buy Quantity cannot exceed $50,000.
- Product Price: Each ASIN must be priced at least $5.
- Product Restrictions: No oversized, heavy, or hazardous items are eligible.
- Invitation Only: Access to the Born to Run program is by invitation, and criteria for selection are not publicly disclosed. Amazon evaluates various factors to ensure the program’s effectiveness.
All ASINs must be pre-approved before submission.
Forecasting the Right Quantity
To make the most of Born to Run, accurate forecasting is essential. Here’s how to fine-tune your estimates:
- Product Launch: Use Amazon Brand Analytics (ABA) to gauge future demand for similar products or review off-Amazon demand if applicable.
- Promotions: Adjust forecasts based on insights from ABA and your own expectations.
- Seasonal Trends: If anticipating a boost due to marketing campaigns, incorporate this expected increase into your forecast.
Evaluating the Benefits of Born to Run
Here are some compelling reasons to consider the Born to Run program:
- Boosted Sales: A large initial order can significantly enhance your sales, reviews, and rankings. Tests have shown that ASINs under Born to Run often see nearly double the sales compared to standard launches.
- No Ad Spend Requirement: Previously, vendors had to spend 10% of the order value on ads. This requirement is now lifted, though Amazon still suggests running ads to boost visibility.
- Reduced Stockout Risk: With Amazon ordering enough stock, you minimize the risk of stockouts, optimizing your sales potential from day one.
- Strengthened Amazon Relationship: Successful launches can demonstrate your product’s value to Amazon, paving the way for a stronger, ongoing partnership.
Conclusion
Navigating the complexities of Amazon’s Born to Run program can be a game-changer for your product launches, offering a streamlined path to success and reducing the risk of stockouts. By leveraging this opportunity, you can secure substantial initial orders, boost your product’s visibility, and strengthen your relationship with Amazon.
However, success hinges on accurate forecasting and a clear understanding of the program’s terms. With careful planning and strategic execution, you can maximize the benefits of Born to Run and set your product up for a successful debut.
At U-commerce, we are dedicated to guiding you through every facet of your Amazon journey. Our team of seasoned Amazon consultant experts is here to help you navigate the Born to Run program, ensuring your product launch is not only smooth but also successful.
Ready to take the next step? Contact us today to unlock the full potential of your Amazon presence and turn your product vision into reality.
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