As a vendor or brand owner, navigating the competitive landscape of Amazon can be challenging. Amazon's Born to Run (BTR) program is designed to help sellers maximize their success by providing a unique opportunity to increase inventory levels and improve sales of new or existing products.
In this comprehensive guide, we will delve deeper into the BTR program, its benefits, and how it can be effectively leveraged to boost your business through you Amazon Vendor account.
1) What is Born to Run?
Born to Run (BTR) is an invite-only program that allows you to request orders for a product by telling Amazon how many units of that product you expect to sell through in 10 weeks. Amazon will review your request and – if approved – will buy up to that amount. Units that don’t sell through within 10 weeks are subject to returns or retention fees (at your election).
2) Why should I use Born to Run?
Born to Run allows you to request purchase orders from Amazon to increase instock levels on your products, including during product launches or planned marketing campaigns. Doing so will decrease out of stock risk and allow you to capture the full upside of any sales spike.
3) What is the 10 week “sell through period”?
What happens if my product hasn’t sold after the period ends? You can use Born to Run to request an order quantity that you believe will sell through within 10 weeks- called the “sell-through period.” The 10-week sell-through period will start 20 days from your BTR submission date (to account for transportation lead time) and last for 70 days. At the time of ASIN submission, you can decide what you want Amazon to do with any inventory that is unsold after the 10-week sell through period, choosing between the following preferences:
1. Amazon may return unsold units, considering weeks of cover and sell through. In case any such unsold units are returned by Amazon, you will refund 100% of the product cost for any units so returned, plus 10% shipping and handling fees.
OR
2. Amazon will keep unsold units. You will provide Amazon a ‘retention fee’ equal to 25% of the cost of the unsold units. If you choose this option, any retention fee will be automatically deducted from your accounts payable under an automatically generated agreement in our COOP system which can be viewed in the Completed Offers tab. Note that Amazon’s standard terms for returning defective or damaged units still applies.
4) Will my Born to Run submission be the only POs my ASIN will receive in the 10-week sell-through period?
Not necessarily- if customer demand increases during the sell-through period, Amazon may order additional units during the 10 weeks. The Born to Run Program is simply meant to jumpstart this flywheel and help prevent products in high demand from going out of stock.
5) What ASINs can participate? If my ASIN meets these parameters, how can I submit it to Born to Run?
We operate an invite only program and we impose certain operational, profitability and other requirements and checks which we continually iterate on and monitor dynamically in order to ensure that Born to Run provides the optimal vendor experience and outcomes for us. You can submit new or existing products to Born to Run by going to Vendor Central -> Orders -> Vendor Initiated Orders
-> Born to Run. From there, you will specify the ASIN and unit quantities you want to submit. Amazon will then evaluate your submission and – if approved – a PO will be generated within 1 business day from that approval. We also provide you with an option to launch a Self-Service Performance Advertising (SSPA) campaign automatically for your submitted ASINs.
6) Where can I see if my submission was approved? Once it is approved, where can I track sales within the 10-week “sell-through period”?
Once an offer has been submitted, you can see it by searching for Offers “Under Review” in the Search area of Born to Run in Vendor Central. We will review the offer at an ASIN level and, therefore, we may accept or reject offers for each ASIN submitted. If we have approved an offer for an ASIN, you will see the approved quantity by searching for “Active Offers” and will receive a PO for the submitted quantity of that ASIN. On the Active Offers tab, you can also click “Go to Details” to see the sell-through rate of each of your submitted Born to Run ASINs.
7) When should I expect a PO?
Before you submit an ASIN for Born to Run, please ensure (1) you currently have ample stock of the ASIN(s) on hand and (2) your warehouse team is ready to process the order immediately. If approved, POs are transmitted within 1 business day of submission.
You will still be able to reject or accept any PO we issue under the Born to Run program. Should you accept our PO, you will retain the risk of selling through the inventory you have confirmed and shipped on the POs.
8) Do I have to sign any Born to Run specific contracts?
During offer submission, you will need to select your preference on what should happen to any inventory that is unsold after the 10-week sell-through period (see FAQ 3 above for details on these preferences). Your existing vendor contract with us will then be supplemented and amended by the preference you have selected for the ASINs you have submitted into Born to Run. This amendment is only applicable to the Born to Run offer ASINs you have submitted; it does not apply to other POs received by you.
9) Can I create brand new ASINs via Born to Run?
No, ASIN set up needs to be completed in the existing creation workflows (e.g. New Item Set Up, Catalog Feeds).
10) What will my Ship Windows be for the Born To run POs? Can you extend the Ship Windows on the Born To Run POs?
Ship Windows/Delivery Windows on BTR POs are set to begin the day after PO transmission, unless selected otherwise during submission. The window length on BTR orders is consistent your regular replenishment PO window length. These cannot be extended by the Born To Run team.
11) What are the fees associated with the program?
There is no additional cost or fee for using the Born to Run Program. However, depending on what you choose to do with any inventory that is unsold after the 10-week sell-through period, you will need to:
(i) refund 100% of the product cost for any returned units, plus 10% shipping/handling fees; OR
(ii) provide us with a “retention fee” equal to 25% of the cost of the unsold units.
This is a choice you make during the offer submission process (see FAQ 3 above for details on what these choices are).
12) How many ASINs/Units can I submit per offer?
Up to 50 ASINs can be submitted in each offer, with no unit caps. Note that we do impose certain operational, profitability and other requirements and checks which may limit the ASINs or units that can be accepted in the program.
13) When will returns for my Born to Run inventory be initiated?
Assuming you have selected the return preference for unsold inventory, we will assess whether to return any unsold inventory at the end of the 10-week sell-through period depending on our inventory health. If we decide to return any unsold inventory to you, the returns can start as soon as the week following the end of the 10-week sell-through period.
14) How does Amazon determine where my unsold BTR inventory should be sent?
If you are using the return preference for unsold inventory, BTR uses your return address (stored in Vendor Central) to determine where unsold inventory should be sent. If you choose this preference, you will need to make sure you have an accurate return address in Vendor Central to prevent any issues in the return process. The return address can be found and managed via Vendor Central > Settings > Return Addresses.
15) Do returns of unsold BTR inventory follow my other supplier contracts with Amazon?
If you select the return preference for unsold inventory, this selection will take preference over any other supplier contract agreement you’ve established with Amazon, allowing Amazon to make a return decision on any unsold BTR inventory regardless of return restrictions you may have negotiated in other agreements for non-BTR inventory. When you choose the return preference for unsold BTR inventory, you are agreeing to accept BTR returns for unsold units that remain at the end of the 10-week sell-through period, and Amazon can exercise this return right at any time after the sell-through period ends. Failure to accept BTR-related returns may result in removal from the program.
16) Why is my BTR ASIN showing as OOS? I have already shipped the inventory.
This means we are seeing higher demand than what we have on hand and in transit. Your Born to Run ASIN should show as instock on our systems as soon as we have the units from open POs received in our warehouses.
17) Can I negotiate offers on unsold inventory after sell through period so I don’t get returns or get charged a retention fee?
No, any unsold inventory at the end of the 10-week sell-through period will be subject to the preference you would have selected on submission to the Born to Run program.
18) I want access to the Born To Run program.
We operate an invite only program and we impose certain operational, profitability and other requirements and checks which we continually iterate on in order to ensure that Born to Run provides the optimal vendor experience and outcomes for us.
19) Who pays freight for product being shipped to Amazon? Is it Amazon or the vendor?
This will be in compliance with your existing Freight terms.
20) Who pays return freight for items going back to the vendor that did not sell?
A 10% shipping/handling fee will be charged on returns of any unsold Born to Run inventory if this is the preference you have chosen.
21) Is Born to Run only for new product launches?
No, it can also be used for cases where you believe our usual level of PO quantities for an existing ASIN should be higher for reasons such as a planned marketing campaign.
22) When POs get issued, will they go to only one Amazon warehouse or to multiple Amazon warehouses?
The POs will be issued in compliance with your existing Freight terms.
Born to Run Conclusion
Amazon Born to Run is a powerful tool that can help sellers grow their business, minimize stockouts, and maintain a predictable cash flow. If you're an Amazon vendor or brand looking to boost sales, increase your inventory levels, or launch new products, BTR is an excellent option to consider.
However, as with any program, success depends on using it correctly, providing accurate sales forecasts, and managing inventory levels diligently. With these factors in mind, BTR can be a game-changer for your business on Amazon.
At beBOLD, we understand the intricacies of the Amazon Born to Run program and are committed to assisting you in making the most of this valuable tool. Our team of experts will work closely with you to accurately forecast sales, manage inventory levels, and develop tailored strategies that align with your business goals. By partnering with beBOLD, you can efficiently navigate the Born to Run program and enhance your overall growth on the Amazon platform.
In addition to assisting with the Born to Run program, beBOLD offers a comprehensive range of services designed to support your success on Amazon. These include optimizing your product listings, implementing effective marketing campaigns, and providing valuable insights on pricing and promotion strategies.
Whether you're launching new products or looking to optimize your existing inventory, beBOLD is here to help you achieve your objectives and reach your fullest potential in the ever-evolving world of e-commerce.
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