What is Born to Run? Born to Run Review

rights and interests

Vendors 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).

Require

1. 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.

Example

In 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.