Born to Run Amazon Program: How to Ready An Impactful Product Launch
You’ve probably read how Amazon produced hundreds of millionaires, and that’s true. The retail giant has produced a long string of successful online entrepreneurs. But truth be told, becoming a successful Amazon retailer is not as easy as it seems. In fact, more than eighty percent Amazon startups fail during their first two years.
Many 1P sellers (also known as Amazon Vendors) have a hard time building sales velocity for new products because the retail giant usually waits until their new product shows promise before they order a huge quantity. This could slow down your sales. It could lead to missed sales and revenue opportunities.
Building sales velocity is important, especially if you own a small or medium-sized company. Every second counts. You have to get rid of your inventory fast to keep your cash flow pumping. That’s the only way that your business can survive.
What Is Amazon Born To Run and How It Can Help You Grow Your Business at an Accelerated Rate?
Born to Run sounds like a fitness or an athletic project, but it’s actually a program that helps Amazon vendors launch their product and build sales velocity. It is one of the keys to successful product launch on Amazon.
Normally, Amazon waits until new products gain traction before placing a huge order. The retail giant looks at multiple factors before they submit a purchase order. But, with this program, you can get Amazon to purchase a large amount of your new product right after you completed the manufacturing process.
The Born to Run allows vendors to select their initial ten week inventory position (also known as the LBQ or Launch Buy Quantity) for a newly launched product in exchanged of:
The right to return all unsold products after the 10-week period
Amazon Marketing Services (AMS) spending of at least ten percent of the LBQ cost
For example, let’s say that you’re selling electronic products on Amazon and you just produced iPad keyboards.
Your keyboards cost $30 each and Amazon agrees to purchase one thousand units. This means that the LBQ cost is $30,000. In exchange for the purchase, you give Amazon the right to return all unsold products after the ten week period. You also agree to spend $3,000 (ten percent of the LBQ) in advertising. This means that you have to run PPC ads to increase your product’s reach and accelerate your sales.
Spending ten percent of the LBQ cost on advertising is also a great opportunity for you to get the word out about your product. This helps you increase brand awareness, accelerate sales, and win the buy box game.
One of the major benefits of the Born to Run program is that It ensures that your brand new ASIN reaches sales maturity quickly without having to worry about the item getting out of stock because Amazon has enough product inventory.
Another great thing about this program is that it brings a lot of revenue to your business. If your product is doing really well, the LBQ may not be the only purchase order that your new product receives in two and a half months.
If your ASIN has a high sales velocity and receives sales traction in less than ten weeks, Amazon may place another purchase order.
Born to Run Program Requirements
To avail of this amazing product launch program, you must meet the following requirements:
Your product must not cost less than five dollars. It must not be bulky or heavy. It should not be considered a hazmat (hazardous material). This means that you can’t sell products that might be classified as dangerous goods, such as :
Tire care products
Water treatment chemicals
Video game controllers
Glue and other adhesives
Pest control products
You must be using Amazon Marketing Services for at least ninety days.
Your product must be considered “new”. This means that your product cannot be in an Amazon fulfillment center for more than a month.
The LBQ (Launch Buy Quantity) cost should not be more than $50,000.
How to Avail of the Amazon Born to Run (BTR) Program
BTR is only available to vendors or 1P sellers. This means that you must have a Vendor Central Account to avail of this service. It was introduced as an invite-only program. But, if you want to avail of this program, you can contact your assigned vendor manager and let them know that you are interested in the program. Your vendor manager can walk you through the process.
How to Make the Most Out of the Born To Run Program
Born to Run is a great program that boosts the sales of new products. But, to make the most out of it, you must be extremely strategic.
Here’s a list of tips that you can use to make the BTR program work for you:
You must do extensive product research before starting the manufacturing process.
To prevent losses and maximize your returns, you must make sure that there’s a demand for your new product. You must do an extensive product and market research. You can use various tools like Jungle Scout, AMZ Scout, or Product Discovery. You can also use the Amazon Best Sellers page to identify in-demand products.
Here are a few things that you should consider in picking the right product to manufacture:
Profitability – You must choose a product that has a good profit margin. Your production and marketing costs should be significantly lower than the price. After all, the main goal of every Amazon seller is to make money.
Low Competition – Choose a product that’s not sold by a major brand. This way, there’s a huge chance for your product to do well. Similar items in the niche should have a Best Seller Rank (BSR) of 5000 or lower. You also make sure that the top sellers in the niche have less than 200 reviews.
Lightweight and Small – To qualify for the BTR program, your new ASIN must be compact must be compact. Avoid producing something that’s hard to move around.
Reasonable Retail Price - Choose a product that you can sell for $25 to $50. Keep in mind that online shoppers are less likely to buy a product that costs more than $50. And you’ll have a hard time making huge profits if you’re going to sell something that costs lower than $25.
2. You must produce a high quality product.
Don’t join the BTR program if you’re selling a low quality product. You’ll end up having bad reviews, your return rate will increase, and your account may be suspended.
3. You should have a solid marketing strategy.
Let’s say that Amazon agreed to purchase a huge quantity of your product worth $50,000. Remember that you have to spend 10 percent of the LBQ cost on Amazon marketing services and if you don’t follow this rule, you could get blacklisted from the program.
To maximize your ad conversion rates, you must have a strong marketing strategy. You must create engaging ads and make sure that you’re targeting the right keywords. It’s also best to use the Amazon A+ feature to help customers make informed purchasing decisions, get good reviews, and increase your ad conversion rate.
How to Run An Amazon Store: Tips For Those Who Are Not Qualified For the Born to Run Program
As previously mentioned, BTR is not available for everyone. So, what to do if you’re not qualified? Well, you could avail of the Amazon Launchpad program or you can launch the product yourself. You can create a buzz around the product on social media or on your blog. You can launch the product on your own website and get reviews from respected sources and then direct buyers to your Amazon page.
Here are a few Amazon store management tips that can help you maximize the success of both your new and existing products:
If you’re a brand owner, register your business in the Amazon Brand Registry program. This can give you access to awesome features like Enhanced Brand Content (EBC) and Project Zero. EBC allows you to create rich content and more images while Project Zero helps you protect your brand from counterfeiters.
Share your brand story. Customers are attached to brands that they can relate to.
Create a detailed product description. Keep in mind that online sellers can’t touch the product, so you must have a vivid and highly accurate product description.
And lastly, outsource whatever you can. You want to focus on things that matter so it’s wise to hire people to run your Amazon store or your marketing campaigns. Outsourcing can reduce your stress and can give you a lot of time to do other things. You can create more products, read born to sell reviews, or simply spend more time with your family.
When it comes to accelerating your business and achieve great success as an Amazon seller, MarketplaceOps can help. Speak with us today.