The Amazon Ecosystem and Terminology
Transcription
Amazon designed its born to run program in order to expedite the traditionally slow process of product launches on the platform through the program, vendors will be eligible to choose their initial 10 week inventory positions for new product launches. What has originally been a slow process centered around gathering positive reviews and sales numbers has now been simplified newer vendors, especially stand to gain a tremendous amount of leverage.
show moreIf the program works, as it is expected too, there are various reasons that may lead vendors to take interest in the program, such as familiarity with their own product line, born to run offers vendors, the opportunity to take advantage of this personal knowledge. If vendors are confident in their product in their market, they can translate that into larger initial buy quantities benefits of a fully in stock launch.
This makes it easier for individual ASINs to reach sales maturity quickly and AMS support AMS offers vendors, effective tools to help him stand out amongst competition and push traffic to branded pages. Vendors can even introduce their products right next to competing items just before customers reach the point of conversion. Vendors who take part in born to run will have the freedom to select their beginning 10 week inventory position for new launches in exchange for two things, full return rights, applied to any unsold products from the 10 week inventory position, otherwise known within the program as the launch by quantity.
And investment in Amazon marketing services or AMS support worth 10% of the launch by quantities, total cost on the launch ASIN. Let us explain, imagine a vendor was on the cusp of releasing a brand new line of coloring pens and wanted to take part in the born to run program. If the vendor knew the pens would sell for $2 per unit.
They could have Amazon buy a thousand units through born to run. This would translate to a $2,000 total launch by quantity cost because Amazon would then take on both financial and inventory risks regarding the pins. The vendor would need to offer up something in return. Therefore, the vendor would be required to invest $200.
Or 10% of the launch by quantities cost and sign up on return rights for inventory that went unsold after 10 weeks, a vendor’s 10 week return timer will begin on the same day that the ASIN they’ve signed up for the program is in stock and viable on Amazon’s platform. After exactly 10 weeks have passed from the state, Amazon will have the right to return unsold inventory to the vendor.
In the event that the as sees quality sales traction, during the course of its 10-week run, Amazon systems will often opt to buy into that ASIN normally. Currently, the born-to-run program only requires three things of vendors. The first, the total product cost of the launch by quantity or LBQ cannot exceed 50,000 USD.
The second. The ASIN must not have a product cost of less than $5 per unit already have been in stock as an Amazon fulfillment center for over 30 days or be heavy or bulky. And thirdly vendors must utilize AMS for at least 90 days prior to signup, participating in the program is apparently a breeze.
Once requirements submit. Amazon even toots that participation should take more than 20 minutes of a vendor’s time in order to utilize the program, vendors only need to follow four key steps. The first source fully set up the ASIN on Amazon. Reach out to your vendor manager for a born-to-run intake form.
Fill out the intake form and return the form to your vendor manager for approval second. Deal with policies after your vendor manager has approved the LBQ you’ll receive a born-to-run policies contract via email. This contract will outline return rights and details concerning the 10% AMS investment sign and return this form to your vendor manager for approval.
Third, buy a purchase order will be created with whatever amount of products was agreed upon as the LBQ or launched by quantity, and fourth. The sell-through once the product achieves in-stock status on Amazon, you’ll have 10 weeks for the LBQ or launched by quantity to sell through. If any inventory remains unsold following the 10-week timeframe, it will be subject to a return to you at full cost.