Amazon's new program, Born to Run, is a program that allows suppliers to launch new products faster. Thanks to this, suppliers now have the opportunity to speed up the launch of new products on Amazon without having to wait for sales to increase and the number of positive reviews to increase. Test time June 2018 English Born to Run Chinese Amazon Born Programrights and interestsVendors participating in Born to Run can choose their initial 10-week inventory level, also known as the “Launch Buy Quantity” (LBQ), in exchange for a few conditions with Amazon: •Amazon reserves the right to return all unsold products in LBQ. •Suppliers need to invest 10% of LBQ cost in AMS (Amazon Marketing Services). Require1. Suppliers must use AMS for at least 90 days 2. Products not considered: dangerous goods, heavy or bulky, or products costing less than $5 3. The product/unit must be considered “new” by Amazon standards – meaning the item cannot have been in a fulfillment center for more than 30 days. 4. The total product cost of LBQ (the number of units the supplier wants to launch) cannot exceed $50,000. ExampleIn this example, suppose the speaker sells for $50 per unit and Amazon agrees to purchase 1,000 units (for a total “Launch Buy Quantity” cost of $50,000). In exchange for Amazon agreeing to assume the financial and inventory risk of the new product, the seller is required to invest 10% of the launch purchase quantity costs ($5,000) in Amazon Marketing Services (AMS). Under the program requirements, the seller must also agree to the right to return any unsold inventory from the original LBQ after the 10-cycle period is over. |
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