What is the FBA New Selection Program?
The FBA New Selection Program offers “free sponsored ads, promotional clicks, shipping, storage, removals, and returns on eligible, new products for a limited time”. On April 1, 2021, Amazon rolled out this new feature, seemingly to help new sellers and new products in their FBA warehouses.
How do I qualify for Amazon FBA New Selection?
There are a few high-level requirements in order to be eligible to enroll. Keep in mind that you can enroll if you are not eligible, so check the eligibility requirements in order to be approved for this program.
For an in-depth look at the terms and conditions of this program, be sure to check the Amazon page directly.
Amazon details the following eligibility requirements for an Amazon seller to enroll in the program.
- You must be a Professional Seller.
- Those with an IPI (Inventory Performance Index) score must have a score higher than 400.
- You’re still eligible if you’re new to FBA or if you have not yet been assigned an IPI.
- You must meet eligibility requirements on the date that the first new-to-FBA unit is received by FBA warehouses.
Sellers must maintain eligibility by all of the factors listed above when units of each eligible ASIN are received at a fulfillment center Your account will be checked daily for these requirements. For example, if your IPI score drops below 400, you will be removed from the program (until your score improves back above 400).
What are the benefits of the FBA New Selection Program?
Amazon’s ultimate goal is to encourage FBA, because this initiative helps sellers save money during new product launches. A seller receives the following program benefits on these specific ASINs:
- Fee waivers for monthly storage and free removals for standard-size ASINs
- No monthly storage fees and free removals for oversize ASINs
- Additional benefits for apparel and shoes
- $200 in sponsored ad promotional clicks (new FBA sellers only)
- $100 discount on shipping (new FBA sellers only)
Eligible ASINs also have free return processing on up to the first 50 units for standard sizes, 20 or 30 units on oversize, and 100 in clothing and shoes. Now, there are certain additional requirements to be eligible for each of these benefits, but it gives sellers a great leg up as they’re attempting to launch new products!
Why should I enroll?
As we’ve mentioned throughout this post, there are a ton of reasons sellers should enroll in the FBA New Selection Program, but these are our top three:
1. It’s free to join!
When was the last time you found a program that Amazon offered that didn’t require an investment? Okay, maybe Brand Registry. However, think about features like coupons or Transparency or Vine! All of these programs require some sort of additional investment on top of the Amazon fees you’re already paying.
Since there’s no additional fee to join the New Selection program, go for it, especially if you’re planning on launching new products in the future. You never know when they may close this program (Looking at you, Seller Fulfilled Prime).
2. It’s a low-risk option to test and launch new products.
You get free storage, returns, and removals for up to 50 units of any standard size product. 50 units is a perfect test batch to see if your product has “legs” and can perform for you. Now, you can certainly send in more than 50 of these items, but the free benefits only apply to up to 50 units.
Keep in mind that these are for net-new Parent ASINs on Amazon, so you can’t take advantage of this program to test launch a new pattern/color/size of an already existing product listing.
3. New FBA sellers get advertising credit.
Amazon is giving away advertising dollars! When you were getting started, think about how critical $100 in ad spend was to your success. Who turns down free money?
With advertising becoming an increasingly important part of launching a product on Amazon, every dollar counts, especially when it isn’t coming from your own budget.
All in all, this is a great new feature that sellers should be trying out! Amazon is making an effort to help sellers launch products since they closed the Early Reviewer Program. Enrollment is simple, and maintaining your eligibility is really just the baseline for growing a successful business on Amazon.
Caroline is an Event Manager, Partner Specialist,and Marketing Expert at DISQO. When she's not offering excellent customer support she's doing pirouettes and cheering on the UGA Bulldogs.