What is Amazon Accelerator Program: Everything You Need To know in 2022

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    What is the Amazon Accelerator Program?

    amazon accelerator program
    What is Amazon Accelerator Program: Everything You Need To know in 2022 3

    Amazon says it “enables manufacturers to launch brands and innovative products exclusively on Amazon and provides a path to become an Amazon Private Brand supplier.”

    Amazon intends to utilize this accelerator program to develop private-label companies in its Marketplace. In addition, it’s an opportunity for Amazon to offer “its own” products that private label firms offer.

    It’s like a franchise company, with the exception that your company is the one that sells items, and Amazon is the brand that controls your name.

    It may seem like most of the profits go to Amazon; however, there are benefits for those who are part of this accelerator program.

    Why you should Join Amazon Accelerator Program 

    Let’s review some of the benefits of joining the Amazon Accelerator Program.

    amazon accelerator program
    What is Amazon Accelerator Program: Everything You Need To know in 2022 4

    Greater exposure

    Amazon declares that “Products with high ratings and reviews may receive additional placements across Amazon.”

    The evidence suggests Amazon offers its private labels and exclusive brands plenty of publicity. It advertises its brands on the lower end of product listings for competitors. The latest research has also revealed that its algorithm puts Amazon-exclusive brands above other brands in search results. It was believed to be the leading element in determining what was at the top of the list.

    All this increased exposure should result in increased sales for your company.

    The possibility of becoming an Amazon supplier

    As we’ve already mentioned, Amazon Accelerator Program is a great way to start. In addition, Amazon Accelerator Program allows companies to become a supplier to some of the company’s labels.

    If the popularity and quality of your business impress Amazon staff and Amazon they are impressed; they might request that you supply the company with products they can put their name to. In addition, because Amazon is regarded as trustworthy and reliable, it can move much of its inventory. So, being a supplier can be extremely profitable for your business.

    If your company’s image is outstanding, Amazon may even purchase it. To be part of the Amazon Accelerator Program, you must be part of the Amazon Accelerator Program and give Amazon the option of purchasing your brand.

    Extra marketing and growth support

    To ensure that your brand’s new venture will be successful, Amazon will provide you with a range of marketing tools and support from its staff.

    To improve visibility, use the free credits offered by Amazon Sponsored Ads and Amazon Web Services. In addition, to get feedback from customers and boost the number of reviews you get for your products, you’ll have access to Amazon Vine, an Amazon Vine Program, at no cost. You’ll gain access to additional data analytics as well.

    Amazon staff will also be able to assist with creating content for your listing and help you with email and social media marketing.

    If you’re located in Seattle or elsewhere, you could utilize Amazon’s co-working spaces for your startup.

    A Testing Platform

    Participating in the Amazon Accelerator program allows you to try out products being launched on the world’s biggest Marketplace, which means you receive quick feedback and can assess the marketability of your products in a matter of minutes.

    You supply the items you want to sell, and Amazon will market the products.

    How Much Does the Amazon Accelerator Program Cost?

    Sellers accepted in Amazon Accelerator Program will incur the program fee of a 7 % premium on the fees for referrals which are detailed in the Amazon Fee Schedule.

    Suppose your product falls under Fashion areas (Clothing & Accessories, Shoes & Bags, Jewelry, Watches, and Luggage). In that case, The fee to join the program will be an extra 7% on top of the referral fees listed in the Selling On Amazon fee schedule for clothing & Accessories, regardless of which Fashion category of product you offer.

    Note that any brands that are part of that Seller Central account you enroll into the accelerator will be charged the program cost.

    Amazon Accelerator vs Amazon Launchpad

    The main goal of Amazon is to leverage the market’s share of profits to help entrepreneurs in the field of e-commerce, and have implemented programs to accomplish this.

    Amazon Launchpad is the other major program that will help to launch your company. Although both programs function in a similar manner and have similar advantages, there are few distinctions.

    Launchpad offers its own Marketplace wherein to offer products.

    The product pages feature large videos and images, including hotspots, carousels, and comparison tables. There is additional space for sales messages as well as product information.

    Launchpad sellers also have access to support for startup growth by guiding the procedure of setting up their own Amazon accounts and establishing an online storefront and product page listings set up. They also get support from other service suppliers through Amazon to help with sales, financing, prototyping, manufacturing, and many more.

    The primary difference between an accelerator and a launchpad is that you maintain control of your brand with a Launchpad. Your storefront, products, and storefront are under your brand’s name, and you retain complete control over the supply chain.

    The only caveat to Launchpad’s program is there must be the following prerequisites to be met:

    • A 5% fee for premiums in addition on top of Referral Fees (which is reduced to 3percent if you surpass the threshold of $1,000,000 in total sales within the first 12 months)
    • Your product must have at least 3.5 stars from at least five reviews
    • You must be registered with Amazon FBA with Prime Badging

    If you believe that the advantages of the Launchpad program far outweigh these obligations, this might be a great option to start or expand your business.

    Does this Accelerator Program worth the cost?

    With all the sacrifices you have to make – control loss in growth, a lack of growth, and limited branding opportunities, not to mention the anticipated low-profit margins, it makes sense for brands to choose a route that limits their options. If Amazon wants to draw more brands, they’ll need to work hard to make it easier for them.

    Amazon will also receive the final word, which is, of course. Any brand that is dropped out of the Accelerator Program is gone. The company’s founders must begin again with brand new identity as well as new offerings. It could be a different situation should Amazon were to acquire the Accelerator Brands from the program. However, at present, there’s no indication of whether this will occur in the near future.

    In their dealings with companies, it appears that Amazon prefers to take on or rival other accelerators rather than join in the collaboration.

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