You know when a life comes into this world and a caregiver does whatever it takes to ascertain it thrives?
You know when a life comes into this world and a caregiver does whatever it takes to ascertain it thrives? In a nutshell, that’s what the program “Born to Run” on Amazon Vendor Central is all about.
It is more or less like a tender to Amazon that vendors are given the opportunity to submit by Amazon. Here, the vendor proposes that they will supply a definite quantity of their brand items (called Launch by Quantity aka LQB) to Amazon which if not completely sold by the stipulated sell through period term of 10 weeks will subject the vendor to incur a charge. There are two alternative fees vendors can choose from: a 25% retention fee over the cost of the unsold goods, goods that will remain with Amazon, or a full refund of the cost of units that Amazon returns, including a 10% delivery and handling charges. Besides the fee conditions, “Born to Run” is a free invite-only ordering program. Certainly, those vendors who are invited to utilize this program can benefit from it.
Now, which products can the brand merchant choose for this initiative? Of course, those that are new launches in their portfolio are the major drivers. Existing ASINs that are not known as such in the marketplace can be considered. Furthermore, brand products that they desire to spike the sales of, are already advertised or promoted for can receive an advantage here. The factor that remains constant, is that the vendor gauges the particular ASIN to be promising in terms of high demand and large sales volume.
Once the brand submits the request for a Purchase Order (PO) against the ASIN, Amazon will review, accept or reject, and as a consequence proceed with generating the order. The e-commerce baron is hereby the holder of the products. And because a fixed quantity is purchased beforehand, as a vendor the out-of-stock risk effect gets reduced. In turn, the brand owner can focus on tools and incentives for bumper sales, higher traffic for the item, brand awareness and other such resources for successful results using “Born to Run.”
It’s a knack! When you as the vendor build smart business strategies, plan a sustainable budget, optimize PDP, and maintain a tracking system of the progress this self-service scheme is generating for you especially at the halfway mark, you can achieve a stellar performance. Accordingly, these decisions for a higher sales traction and a greater profit margin can enhance the value of participating in this program.
There are certain caveats that come with enrolling in “Born to Run”. Fully equipped with knowledge and maximizing your experience of this amazing prospect that Amazon Vendor Central offers, we of Eleantz can assist you to scale your growth chart. Contact us so that we can work around to make your brand products to be pilots of “Born to Run!”