What is Sold By Amazon or SBA?
Sold by Amazon allows Brand Registered brands to sell their products through Amazon, with Amazon being the seller of record, on Seller Central. The program is currently only available by invitation. Brands participating in the Sold By Amazon program will be granted a Minimum Gross Proceeds (MGP). This means that no matter the price Amazon sells the product at, the brand will receive a minimum amount per unit.
How Does the Sold By Amazon Program Work?
The brand will control the amount of inventory the same way they do with all FBA (Fulfillment by Amazon) inventory. Sold by Amazon (SBA) will set a Minimum Gross Proceeds. This gives Amazon the ability to price the product at any price, with the brand still receiving the MGP for each product sold.
For programs in the SBA program, Amazon will be the seller of record and be responsible for sales tax for all items sold. Items will also appear with the “Sold by Amazon” tag on Amazon’s site.
Should We Participate In The Sold By Amazon Progam?
There are a few factors that will impact whether this program is a good fit for your brand. Some factors to consider:
- Concerns about MAP pricing
- Concerns about Sales Tax
- Access to Vendor Central
Concerns about MAP pricing
If maintaining MAP pricing is important to your brand, we recommend that you NOT enroll in this program. Sold by Amazon allows Amazon to sell your product at any price, including below the MGP. For brands looking to protect their products from price erosion Fulfillment by Amazon is, in general, a better fit.
If a brand is not concerned with the price displayed on Amazon, only the amount of sales and protecting minimum gross proceeds, then Sold by Amazon could be a potentially good fit.
Concerns about Sales Tax
Many brands have a concern about potential sales tax liability when it comes to selling on Amazon on Seller Central. Sold by Amazon removes that concern for the products accepted into the program. If avoiding potential sales tax liability is a primary focus for your organization and you don’t have access to Vendor Central to sell your goods, then Sold By Amazon could be a good fit for your needs.
Access to Vendor Central
For brands that have access to Vendor Central, we are recommending that they stay on Vendor Central. Sold by Amazon offers fewer upsides and less guarantee of a larger catalog all being accepted into the program at this time.
What are the Requirements for SBA (Sold by Amazon)
Once invited, in order to participate eligible brands must:
- Have a professional selling account on the Seller Central Platform
- Have your products registered with Fulfillment by Amazon Services (or FBA)
Once you are invited to the program you will be:
- Lead to a registration page
- Given the opportunity to review the program Terms of Service
- Register for SBA to have SBA feature sets enabled for their Seller accounts
The brand will then need to enroll their individual, eligible products into the program. Registering for the program itself does not register your products in the Sold By Amazon program.
Eligible products will show their Minimum Gross Proceed in the Sold By Amazon View.
Where can I find out more about the Sold By Amazon Program?
You can find more information about the Sold By Amazon program in the help documentation for Seller Central. Here are a few links:
Introduction to Sold By Amazon Video
Sold By Amazon Terms of Service
Help Selling on Amazon
Still have questions or need help selling on Amazon or Amazon Listing assistance? Contact Marketplace Blueprint today!
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