Amazon is one of the largest online marketplaces in the world and offers sellers the opportunity to present their products to a broad target group. To make it easier for sellers to get started and to help them market their products, Amazon has launched the Born-to-Run program. The program allows sellers to list and sell their products on Amazon without having to raise capital for storage and shipping.
How exactly does Amazon Born to Run work? And what requirements do retailers need to meet in order to participate in the Born to Run program? We explain all this and the advantages Amazon Born to Run offers for retailers and vendors in this article. We will also show you how to proceed in order to sell your products via Born to Run.
What is the Born to Run Amazon program?
As Amazon is the world's largest online marketplace, the market leader is constantly developing new programs and functions for its sellers. Amazon Born to Run is an option for sellers to make their Listing and selling products on Amazonwithout having to pay for storage and shipping in advance.
The program is currently aimed exclusively at Vendorswho want to increase their sales figures or are planning a product launch without having to invest additional capital. The program therefore serves in particular to support the launch of new products.
How does Born to Run work?
As already mentioned, Amazon's Born-to-Run program allows vendors to sell their products on the Amazon marketplace without having to worry about storage, shipping and customer service. As with any other sale on Amazon, only Costs for ane Amazon agency This makes it a very profitable option.
To participate in the Born-to-Run program, vendors first tell Amazon that their products will sell well. Amazon then buys a large number of the products in question from the vendor and stores them in order to always have enough products in stock. The item suggested by the manufacturer or seller can be purchased by Amazon up to a value of 50,000 US dollars. However, vendors must have at least 10 % of the purchase turnover for product displays with the Amazon marketing services.
To submit products to Amazon, all you have to do is register via the Vendor Central log in. Then go to the page Orders → Orders initiated by the supplier → Born to Run. You must now wait to see whether the proposed Products purchased or rejected will be. Amazon makes this decision on the basis of various criteria, some of which are unknown.
Once the proposal has been accepted, orders are usually placed within two working days. The sales period then begins - this is a total of 70 daysThis does not begin until 20 days after the submission of the born-to-run products.
What happens if the Born-to-Run products are not sold?
Sometimes it can happen that not all born-to-run products are sold. If this is the case, vendors usually have two options:
- Amazon can use the return unsold products to the sellerfor which the customer must pay Amazon 100 % of the product costs including standard shipping and handling charges.
- Alternatively, sellers have the option of giving Amazon the right to keep unsold products in their warehouse. However, the so-called retention fee is then due. This is 25 % of the purchase value and must be paid directly to Amazon.
Frequent reasons for rejection and their explanation
As already mentioned, vendors must submit a kind of application to Amazon via Vendor Central in order to be included in the Born-to-Run program. Amazon then uses a fully automated review process to decide whether the product is suitable for the special Amazon program or not. The reasons for rejection are often formulated very cryptically by Amazon, so that the exact meaning is incomprehensible to many vendors.
Some of the most common reasons why born-to-run applications are rejected include the following:
- "Rejected - active offer":
If a particular ASIN (Amazon Standard Identification Number) already has a born-to-run offer that has not yet been sold, this may lead to the proposal for a new born-to-run product being rejected. - "Not accepted - unregistered trademark":
If a specific item of a brand is affected and the born-to-run offer has been rejected, the vendor should check whether the ASIN is correctly assigned. If the vendor does not have any trademark rights - especially for licensed products - the trademark should be changed in the Vendor Central catalog or via support. - "Not accepted - Dangerous goods review":
If an ASIN has been classified by Amazon as dangerous goods - so-called HAZMAT - the seller must check whether this is actually the case. If it is indeed a dangerous good, it must be checked which missing documents must be stored under Product certificates → Item. If the product is not a dangerous good, the seller must contact Amazon Vendor Support to clarify the reason for rejection. - "Not accepted - Processing errors":
If there are problems with a promotion on Amazon and you cannot log in or use a certain feature, there is no quick fix. In this case, only patience can help and it is advisable to try again every few days. - "Rejected - unprofitable":
Amazon often refuses to sell products if they are not profitable for the company. In this case, retailers can either lower the selling price or increase the RRP to solve the problem. For inexpensive items, raising the RRP by just 50 cents is often enough.
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Requirements for the Amazon Born-to-Run program
In order to participate in the Born-to-Run program, sellers must meet certain requirements. First of all, the program is currently limited to Premium vendors and only available via a personal account manager at Amazon.
In addition, the Amazon advertising for at least 90 days be used by the potential Born to Run participant. In order to be able to sell their products via Amazon Born to Run, they must not be bulky goods, hazardous goods or extremely heavy goods. The price also plays a decisive role. The product must at least 5 US dollars Amazon allows a maximum cost of 50,000 US dollars.
Furthermore, the product to be sold must meet the Amazon standards and be classified as "new". This means that it must not have been in a logistics center for more than 30 days. Furthermore, vendors must ensure that the Ad issues within ten weeks be made. Otherwise the product will be excluded from Born to Return.
What are the advantages of the Born-to-Run program?
The Born-to-Run program offers numerous advantages for vendors. For example, by participating in the program, they must No capital for storage and shipping which is particularly advantageous for start-ups, small companies and product launches. Amazon also handles all customer service and returns processing, saving sellers not only time but also resources.
Amazon Born to Run also offers other advantages:
- With Born to Run, significantly faster product launches are possible.
- The sale of products can be accelerated by providing a sufficient amount of stock. This means that relevant sales ranks and a higher reach on Amazon can be achieved far more quickly.
- Thanks to the automatic forecasting system, new orders are placed with suppliers when sales are fast. This means that supply bottlenecks can be avoided when demand is high.
- Amazon itself also benefits from the Born-to-Run program, as Amazon Advertising can be better established as a result.
Take your chance now
Are you already an Amazon Vendor and want to sell your products on Amazon, but don't have sufficient capital for storage and shipping? Then Born to Run can be a great way to list your products on Amazon and sell them successfully.
By participating in the program, you can both Save time as well as valuable resources and additionally benefit from Amazon's enormous reach and marketing tools. Make sure that you meet all requirements and that your products meet Amazon's standards to ensure successful participation in the Born-to-Run program.
Do you still have questions or need professional support with implementation? Take your chance now and make an appointment Your non-binding initial consultation with Tobias Dziuba. Together, we will find the right solution for you so that you can achieve long-term success with Born to Run.
Procedure: Amazon Born-to-Run Program
Amazon's Born-to-Run program therefore offers vendors a Simple and optimal optionAmazon's marketplace to offer and sell products without having to worry about storage, shipping and customer service. Amazon takes care of all these organizational tasks directly, leaving sellers with sufficient time and resources for new projects.
As soon as a vendor has registered with Amazon Born to Run and accepted the invitation to the program, they can propose their products and their quantities. These can be displayed in the Vendor Central at Orders → Orders initiated by the supplier → Born to Run be submitted. Amazon reviews these proposals and accepts or rejects them. This decision depends in particular on factors such as profitability. Accepted proposals are usually ordered within two working days.
The sales period is 70 days, but only begins 20 days after submission. As soon as a customer purchases the Born-to-Run product, the goods are shipped directly from the Amazon warehouse to the customer. Amazon takes care of the entire Shipping processincluding packaging and the actual shipping. The seller therefore has the advantage that he does not have to worry about anything except the provision of the born-to-run products.
If, contrary to expectations, products are not sold within the sales period of 70 days, vendors have two options: Either they can request the return of the goods or they can use the retention fee option.
Return of born-to-run products to the vendor
Sometimes the born-to-run product does not meet the customer's expectations or has defects. In this case, the customer can return the Return the product to Amazon. Amazon refunds the purchase price to the customer and informs the seller of the return. The seller can then decide whether to take the product back and issue a refund or whether Amazon should keep the product.
However, this return is based on the so-called Week-of-Coverage. This means that the seller must pay Amazon 100 % of the product cost as well as standard shipping and handling fees if Amazon returns the products to the manufacturer or supplier.
Retention fee
If the sales period of the Born-to-Run products has expired, the unsold products remain in Amazon's warehouse. In this case, Amazon charges a Retention fee for the unsold born-to-run products. This fee is intended to ensure that sellers regularly update and sell their products to ensure high stock rotation and optimal use of storage space.
The retention fee is calculated by multiplying the monthly average value of a seller's stock by a certain fee per unit and a certain number of months. This results in 25 % of the purchase price on unsold productswhich are returned to the vendor.
Furthermore, Amazon's standard conditions for returns of damaged or defective goods continue to apply.
Conclusion on Amazon Born to Run
Amazon's Born to Run program offers sellers or vendors a convenient way to sell their products on Amazon. Probably the biggest advantage of Amazon Born to Run is that the seller does not have to worry about storage, shipping or customer service. Of course, the program also offers numerous other advantages, such as low initial costs and easy setup.
In order to participate in the program, sellers should make sure that they meet the necessary requirements for Born to Run to avoid frequent rejections.
To get the best out of Amazon Born to Run, we advise Tobias Dziuba as Amazon agency in a non-binding initial consultation. Only with the necessary know-how can you achieve long-term success with your Amazon business!
