What is the Amazon Selling Program (SBA)? Amazon Selling Program (SBA) Review

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SBA Program Introduction

Sold by Amazon (SBA) offers a new, straight-forward selling experience for Fulfillment by Amazon (FBA) products, designed to help sellers grow their business. Sellers select products to be enrolled in SBA, and once enrolled, Amazon sets the price for those products. Amazon’s pricing engine adjusts the pricing so that buyers get competitive prices.

To ensure sellers have peace of mind, Amazon will provide a minimum gross receipts (MGP) amount for each SBA item to protect the seller's profits, and the seller will never receive a payment below this price. SBA items will appear to buyers as "shipped and sold by Amazon.com", just like items sold in Amazon's own stores.

What is MGP

The minimum gross revenue (MGP) is calculated before registration, and Amazon will also provide the complete calculation process so that sellers can register products with SBA with confidence.

For example: A pair of shoes has a minimum gross receipts (MGP) of $20. If Amazon sets the item price at $21, the seller’s net revenue is based on the $21 sales price, the same as the net revenue of an Amazon-fulfilled item. Conversely, if Amazon sets the shoe price at $19 (less than the $20 MGP), the buyer pays Amazon $19, but the seller’s net revenue is based on the $20 MGP amount.

SBA Eligibility Requirements

To be eligible for SBA, sellers must have a registered brand through Amazon Brand Registry, have a Professional Selling Account, and be registered for Fulfillment by Amazon (or FBA).

How to register with SBA

To register for the SBA program, log in to your Seller Central account and find Account Information in Settings. Sellers will see a Register button for the Selling on Amazon Program in My Services, where they can review the terms and conditions and register for an account. Be sure to register your account with SBA first, then register for specific products. Registering for SBA does not automatically register products.

Once registered, Amazon will enable a new view in your Seller Central account called "Selling Programs on Amazon". This view is located below the "Manage Inventory" view. All of your eligible FBA products will be displayed along with their minimum gross margin (MGP) amounts. This will allow you to easily select the SKUs you want to enroll in the SBA program. Additionally, after enrolling products, sellers can unenroll from SBA at any time.

FAQ

1. Is there a fee to join or participate in the “Selling on Amazon” program?

No. We still charge standard selling fees and FBA fees for your SBA-enrolled products, but there is no additional fee to join or participate in the SBA program.

2. How does Amazon price my SBA products?

Products enrolled in SBA will be priced using Amazon's pricing engine, which provides dynamic pricing in real time to optimize the competitiveness of your products.

3. Do I have a clear understanding of Amazon's MG settings?

Yes. Once you enroll, Amazon will enable a new view in your Seller Central account called Selling on Amazon. This view is located below your Manage Inventory view. All of your eligible FBA listings and their Minimum Gross Proceeds (MGP) amounts will be loaded into this view. This will allow you to easily select the SKUs you want to enroll in the SBA program.

4. Will MGP change?

Changes are possible, but typically occur every six months. If the MGP for any product registered with SBA changes, you will be notified in writing in advance and have seven days to accept the new MGP. To view products with new MGPs, go to the Selling Programs on Amazon view and filter for "Waiting for MGP Update" under "SBA Issues."

5. What happens if I do not accept the new MGP within 7 days?

Your listings will become inactive. You can reactivate your listings by accepting a new minimum gross receipts (MGP) or by unenrolling from the SBA program. You can find the affected listings by going to the Selling Programs on Amazon view and filtering for Expired MGP under SBA Issues.

6. Can I run product promotions for SBA products?

Not yet. We are still working on enabling Sponsored Products for products registered with SBA. We will notify you once the feature is available.

7. Can I launch a flash sale for SBA products?

Not yet. We are still working on enabling Lightning Deals, Best Deals, and Deal of the Day for products enrolled in SBA. We will notify you once these features are available.

8. Who is responsible for processing merchandise returns for SBA items?

For sellers who volunteer to be early adopters, Amazon will currently process product returns at no additional cost to you. Amazon will notify you in advance if such changes occur.

9. If I join SBA, will Amazon be responsible for product promotion?

No, sellers will manage the Sponsored Products.

10. Can an SBA item be disqualified from participating in the program?

Possibly. We don't expect this to happen often, but if there are issues that cause a negative customer experience (such as product quality), a product may be disqualified from the SBA program. If this happens, you will be notified in writing and you will be required to unenroll the product from the program. You can view the affected products by going to the Selling on Amazon view and filtering for "Other Issues" under "SBA Issues."

11. Can I see the sales data of SBA products?

Yes. You can monitor your SBA sales in the same way as your FBA listings. As a reminder, Amazon is the seller of record, so your SBA sales will show as "shipped by Amazon."

12. Will my Amazon logistics products compete with SBA?

No. If you register a product with SBA, your SBA listing will replace the FBA listing for that product.

13. Will the SBA change my payment terms?

No. You will continue to be paid every two weeks, just as you are paid today for your FBA items.

14. Does SBA pricing take MAP policy into account?

No, SBA will manage pricing to be competitive and will not apply any manufacturer MAP policies. However, every product registered with SBA will have a minimum gross proceeds (MGP) - you will never receive less than this amount, protecting your profits. We recommend working with your brand to determine where SBA makes sense for you.

15. Who will manage the sales tax processing for SBA items?

Amazon is the seller of record for your FBA products that are registered with SBA, so we will collect and remit any necessary sales taxes. For this purpose, Amazon will issue you a tax exemption certificate, which you can find under Reports - Tax Document Library.