- “Amazon Launchpad makes it easy for startups to launch, market, and distribute their products to hundreds of millions of Amazon customers across the globe.”
- Companies are required to create an Amazon vendor account. Once the account has been established, an initial product order is then sent to Amazon’s fulfillment centers.
- In order to participate in the FBA service, wholesaling your products to Amazon is required
- Payment terms for Vendor Express are a “Net+60” cycle; meaning businesses won’t receive payment for up to two months after the purchase order has been confirmed
- “If the selling price of your item to Amazon (and to the suggested retail price) meets our expected price, then we will accept your price. If it is higher than our expected price, we will recommend a lower price that we can accept for the item”, per their terms and conditions. https://vendorexpress.amazon.com/help/topic/201531290
- An initial product shipment must be sent to Amazon at no cost. Ultimately, these units are used to evaluate what demand there is in the market for your product. If Amazon comes to the conclusion that there is not enough market interest, program approval won’t be granted and you’ll have to take a loss on the initial shipment.
- Companies are provided with a dedicated page that host product details, company insight, and a brief Q&A with the company’s founders, often detailing how a product came to fruition.
- Ad placement across Amazon’s site and even access to their customer review program, Amazon Vine – which usually requires an invite to have your products reviewed on.
- Amazon has partnered with organizations, such as Y-Combinator and Kickstarter
Q&A with Earhoox
Earhoox, whose products stand as a solution to loose and uncomfortable earbuds, has been operating on the Launchpad platform since August of 2015. The company’s founders, Jeff Becker and Helmut Wyzisk, heavily revered their time with the Amazon program.
Q. What was the initial process of getting started with Amazon Launchpad like?
A. Getting set up with Amazon Launchpad was a great experience. We were introduced through a business connection at an amazing start-up called The Stable out of Minnesota who helps companies like ours scale and find opportunities to grow. With Launchpad, we were working with a great team right from the onset, and they helped us to develop content and build a page that represented our brand and our story.
Q. What have been your favorite aspects of using the Amazon Launchpad platform?
A. Favorite part, I would say, has been the exposure and the support from Amazon. Launchpad has made Earhoox more accessible both to consumers and to media outlets to see who we are and how we’re changing the way the world moves with their music. The other part that is fantastic is the logistics. Since moving into their Vendor model and Amazon Launchpad, we receive PO’s weekly and are able to let the experts optimize our listing to drive sales. Before, this was left to us, and while we were good at it, our Amazon team is definitely better.
Q. Do you think Amazon Launchpad has been a big factor in contributing to the growth of Earhoox?
A. Launchpad has definitely given our business a boost. For our company, revenue and units have both increased, but more importantly, our relationship with a company that is integral to our success has gotten significantly stronger. The fact that we have a team to help us has dramatically improved our ability to plan and grow both with Amazon and beyond.
Q. Do you think Amazon Launchpad was a good starting point for helping to get your business off the ground? If you had to do it all over again, would you follow the same path with Launchpad?
A. We didn’t start with Amazon Launchpad, so I wouldn’t call it a starting point. We started as a third party seller, then graduated to using their FBA services, and ultimately into Vendor/Amazon Launchpad. Each time we moved closer to Amazon, our business improved. The only thing I would change is that we would have tried to build this relationship sooner.