The Born to Run Program is a way for Vendors to launch new products and build sales velocity quickly. Amazon will generally wait for new products to gain traction before placing a large order, but the program, available only to 1P sellers, gets Amazon to purchase a large quantity of your new product right off the bat.
Vendors who participate in Born to Run choose their initial 10-week inventory position (Launch Buy Quantity) in exchange for:
- The right to return all unsold products after the initial 10 weeks
- AMA spending of at least 10% of the LBQ cost.
Here’s an example: You’ve just manufactured a new phone case and want to sell them for $10 each. Amazon agrees to purchase 1,000 cases, with a $10,000 LBQ cost. Amazon has the right to return all unsold products after the 10-week period, and you agree to spend 10% of the LBQ – in this case, $1,000 – in advertising.
Participating in the Born to Run program ensures that your new ASIN reaches sale maturity quickly, without the need to worry about the item running out of stock. And if your product has high sales, Amazon may place more orders, bringing revenue to your business.
In order to join Born to Run, three things are required of vendors.
- The total cost of the LBQ can’t exceed $50,000
- Vendors must utilize AMS for at least 90 days prior to signing up
- The ASIN must not have a cost of less than $5; already have been in-stock at an Amazon fulfillment center for over 30 days; and be excessively heavy or bulky.
Interested in joining Amazon’s Ready to Run program? Need a bit of guidance with your Vendor Central account? Contact the Amazon experts at Vertical Rail today by clicking here.