Amazon New Seller Incentives: New Sellers’ Choice for Branding

May 9, 2024 amazon incentive program 2024 april launch seller updates

The Amazon experience for sellers has been a rollercoaster ride, isn’t it? 

Early on, it was a land of opportunity. 

Sellers could list almost anything and reach a massive audience, often with minimal competition. It was a gold rush, with stories of sellers making a killing on everything from Beanie Babies to bicycle parts.

However, as Amazon grew, so did the challenges. 

Competition became fierce, with millions of sellers seeking attention.

Amazon’s algorithms became more complex, making it harder for smaller sellers to get their products seen. Fees increased, and some sellers felt the platform became less seller-friendly.  

There have been complaints about strict regulations, account suspensions, and difficulty in reaching customer service.

But Amazon worked hard for its sellers and brought in a new gem for its sellers, named “NEW SELLER INCENTIVES”

New sellers can now benefit from the New Seller Incentives (NSI) program. This program gives you access to helpful tools like brand protection, fulfillment services, advertising credits, and coupons.

Using these tools can help you save money and avoid common startup headaches. NSI has been around since March 2022 for sellers in the US, Japan, and several European countries. And as of March 1, 2024, there’s an even better version available!

Free storage to save on costs, advertising credits to get your product noticed, and even bonus rewards for building your brand – these are just a few ways Amazon is helping new sellers like you thrive. 

So, ditch the worries about breaking the bank or getting lost in the crowd. 

With the right strategy and a little help from Amazon’s New Seller Incentives, your dream of building a successful Amazon business can become a reality. 

Let’s dive deeper and see how these incentives can turn your product into the next Amazon bestseller!

Quick Guide

  1. What are New Seller Incentives?
  2. What are the benefits of new seller incentives?
  3. What do you need to do to get these incentives?
  4. Which regions are eligible for these incentives?
  5. Why a 90-day trial is important for you and Amazon?
  6. Are only brand owners eligible for New Seller Incentives benefits?
  7. Are existing sellers eligible for the new seller incentives?
  8. Where to look for New Seller Incentives/ Where can you find your New Seller Incentives?
  9. How to redeem your New Seller Incentives?
  10. What is the best way to use your New Seller Incentives?
  11. Final Thoughts

What are New Seller Incentives?

Amazon’s New Seller Incentives (NSI) program offers a helping hand to new sellers, providing crucial support for a successful business launch.

Now, let’s break it down:

Valuable Perks

NSI offers access to valuable perks like Brand Registry (safeguarding your brand), Fulfillment by Amazon (FBA – managing storage and shipping), Sponsored Products advertising credits (for promoting your products), and coupons (to attract customers with special offers).

Reduced Costs & Risks

By using these tools, you can potentially save money on things like storage fees and advertising costs. Additionally, FBA can simplify your fulfillment process, reducing logistical headaches.

New in 2024

There is an upgraded version of NSI available since March 2024, which has potential improvements (details not specified). NSI by Amazon aims to make it easier and more profitable for businesses to launch on their platform.

Amazon’s New Seller Incentives program provides a significant advantage for new businesses looking to launch on their platform. With access to valuable tools, potential cost savings, and a simplified fulfillment process, NSI can significantly reduce the risks and challenges associated with starting an online business. The recent upgrade in March 2024 further enhances the program’s potential benefits. 

What are the benefits of new seller incentives?

New Seller Incentives on Amazon offer a variety of benefits designed to upscale your business and help you gain a strong position on the platform. 

Here’s a breakdown of the key benefits:

Reduced Costs and Increased Efficiency

  • Free FBA Storage: This saves your money on inventory storage during the initial phase, allowing you to invest those funds into other areas like advertising or product development.
  • Discounted FBA Fulfillment Fees: This can further reduce your fulfillment costs, improving your profit margins.

Enhanced Product Visibility and Sales Growth

  • Sponsored Product Credits

These credits allow you to run targeted ads, increasing the chances of your products being seen by potential customers searching for relevant items. This can lead to an increaase in sales.

  • Amazon Coupon Credits

Offer discounts to attract new customers and incentivize purchases. This is a popular way to gain traction and build a customer base.

  • Vine Review Credits

Get early reviews from trusted Vine reviewers. Positive reviews can significantly improve customer trust and purchasing decisions.

Brand Building and Long-Term Success (For Brand Owners):

  • Brand Registry Bonus

This bonus rewards brand owners with a percentage back on their sales, incentivizing brand growth and investment.

Brand owners can benefit from the New Seller Incentives. They will receive branded sales bonuses on a monthly basis, which can be used to offset the next month’s referral fees. However, any accumulated bonus will expire 12 months after graduating from the program. These incentives are applicable to the seller’s first year or the first $1 million in branded product sales, up to $52,500.

  • Overall Support for New Sellers: The program provides resources and tools specifically geared towards new sellers, easing the learning curve and helping you navigate the platform effectively.

New Seller Incentives offer a valuable package to help you launch and grow your business on Amazon. 

By leveraging these benefits strategically, you can:

  • Reduce costs and improve your profit margins.
  • Increase product visibility and drive sales.
  • Gain valuable customer reviews and build trust.
  • Lay the foundation for long-term success on Amazon.

What do you need to do to get these incentives?

New Seller Incentives can be accessed through two specific ways, followed by four specific tasks that deliver the four core benefits of NSI too. You can access the program in the following two ways:

  1. Automatic Enrollment: New sellers who meet the eligibility criteria (likely including having a Professional Selling Plan and launching after a specific date) may be automatically enrolled in NSI. You might find confirmation or details about your participation in your Seller Central account.
  2. Seller Central Check:  Head to Amazon Seller Central (https://sellercentral.amazon.com/) and look for a dedicated section for New Seller Incentives. There, you might find an option to enroll if automatic enrollment isn’t the case.

Once, you get enrolled, the following four tasks will help you to explore the intriguing benefits of NSI. 

Task 1

Complete your brand registry within 6months

This could fetch you two benefits on brand improvement 

  • Motivate sellers to safeguard their brand on the platform
  • Improved brand protection features or increased advertising credits

Here’s a simpler way to understand the bonus structure:

  • Initial Boost: You get a 10% bonus on your first $50,000 in sales of your branded products.
  • Sustained Reward: After that initial boost, you earn a 5% bonus on the next $950,000 in sales of your branded products.
  • Maximum Bonus: The total bonus you can earn is capped at $52,500.
  • Time Limit: You have either one year after qualifying for the program or until you reach the maximum bonus amount, whichever comes first, to earn these bonuses.

This rewrite clarifies the key points of the bonus structure in a more concise and easier-to-understand way.

Task 2

To scale your business enroll your business for Fulfillment by Amazon (FBA)

This could fetch you benefits on scaling your business, like:

  • products eligible for Amazon Prime benefits, attracting more Prime members
  • bonus rewards, additional advertising credits, or discounts on FBA fees

Benefits with FBA enrollment within 90 days 

FBA Fee Credits:

  • Inbound Placement ($400)

This credit helps offset the cost of Amazon placing your inventory in the most appropriate fulfillment center within North America. (Applicable to new sellers who listed their first product after January 1, 2024)

  • Fulfillment Fees (up to $200)

You can receive credits towards fulfillment fees when using Amazon Global Logistics (AGL) or Amazon Seller Export and Delivery (SEND) for international sales.

Automatic Program Enrollment

  • FBA New Selection: This program automatically enrolls you, potentially offering an average of 10% bonus on sales for new FBA products (details not provided here).

Discounted Multi-Channel Fulfillment (MCF)

  • 10% Off: You get a discount on fulfillment fees for the first 100 units you ship using MCF, a service that allows you to fulfill orders from your own inventory.
    Get the Latest on 2024 MCF Fees: https://amzprep.com/amazon-mcf-fees/

General FBA Benefits (First Year)

  • Storage Surcharge Exemption: You won’t be charged extra storage fees based on how efficiently you utilize space in Amazon’s fulfillment centers for the first year.
  • Low-Inventory Exemption: Amazon won’t charge fees for having low stock levels during your first year of using FBA.

In short, the aim of these benefits is, to

  • Reduce upfront costs associated with FBA by offering credits for inbound placement and fulfillment fees.
  • Encourage international sales through credits for AGL and SEND services.
  • Potentially increase sales with the FBA New Selection program.
  • Make MCF a more attractive option with a temporary discount.
  • Minimize storage and inventory management costs during your first year with FBA.

Task 3

To promote your products use sponsored products within 90 days and launch a campaign

This could fetch you benefits, like

  • Sponsored Products ads can place your product at the top of search results or on product detail pages, making it more likely for potential customers to see it. 
  • Launching a campaign early can help you gain momentum and establish your product presence on the platform. Early sales can influence Amazon’s algorithms to show your product more organically in search results.

Benefits that come your way with sponsored products within 90 days and a campaign are as follows:

  • $50 Promotional Clicks

NSI grants you $50 worth of promotional clicks for Sponsored Products advertising. This means Amazon will credit your account with an amount equivalent to $50 in ad spend, allowing you to run ads without any upfront cost.

Here’s a key point to remember:

  • Expiration

These promotional clicks expire unused after 30 days from the date you redeem them. So, it’s important to activate them and launch your Sponsored Products campaign within that timeframe.

In short, the aim of these benefits is, to

  • Help new sellers experiment with Sponsored Products advertising at no initial cost.
  • Allow you to test different ad strategies and see if they generate sales.
  • Give you valuable insights into the effectiveness of product advertising on Amazon.

Task 4

Another task that could help you promote your product on Amazon is by using Amazon coupons within 90 days. 

This could  fetch you benefits like,

  • Coupons can incentivize purchases and potentially lead to positive reviews, which can further boost your product visibility.

Benefits that come your way by using Amazon coupons within 90 days are

  • $50 Credit for Coupon Fees

NSI provides you with $50 worth of credit to offset the fees associated with creating Amazon Coupons. This allows you to experiment with offering discounts to attract customers without a significant upfront cost.

Here’s a key point to remember

  • Expiration

These coupon fee credits expire unused after one year from the date you redeem them. So, it’s important to activate them and create your Amazon Coupons within that timeframe.

In short, the aim of these benefits is, to

  • Encourage new sellers to try out Amazon Coupons as a marketing tool.
  • Help you attract new customers and potentially increase sales through discounts.
  • Allow you to test different coupon strategies and see how they perform.

Which regions are eligible for these incentives?

The Amazon New Seller Incentives program is accessible in the following regions: 

  • the United States (US)
  • Japan
  • Europe (specifically the UK, Germany, France, Italy, and Spain)

It is important to remember that in Europe, current sellers are eligible for the incentives only once per region. Therefore, if you are already selling in Germany, you will not receive the benefits again by launching there. 

However, launching for the first time in France or Italy would make you eligible for the advantages.

Why a 90-day trial is important for you and Amazon?

Analysis of program data reveals a significant advantage for new sellers who actively engage with Amazon’s tools within this 90-day window. These tools include essential services like FBA (fulfillment), Brand Registry (brand protection), Amazon Ads (advertising), and Coupons (promotional discounts). By utilizing these tools strategically during the trial period, new sellers have demonstrably improved their performance on the platform.

In essence, the 90-day trial serves as a valuable launchpad for new sellers. By actively engaging with Amazon’s key tools within this timeframe, new sellers are demonstrably better positioned for success on the Amazon platform.

Note:The New Seller Incentive Program offers a crucial 90-day trial period. This timeframe is measured from the moment a new seller has a sellable inventory readily available. For sellers utilizing Fulfillment by Amazon (FBA), this begins upon product arrival at an Amazon warehouse. Conversely, sellers managing fulfillment through a third-party service have their 90 days calculated from the time inventory reaches the third-party warehouse.

Are only brand owners eligible for New Seller Incentives benefits?

No, you don’t necessarily need to be a brand owner to be eligible for all of the Amazon New Seller Incentives benefits.

Here’s a breakdown:

Brand Owner Bonus

This benefit, offering a 10% then 5% bonus on sales, is specifically for brand owners.

Other Incentives

Many incentives are available to all new professional sellers, regardless of brand ownership. 

These include:

  1. Free FBA storage
  2. Sponsored product credits
  3. Coupon credits
  4. Vine review credits (may have limitations)
  5. FBA fulfillment fee reductions

If you’re a Professional seller, you should:

  • Set dynamic prices using Automate Pricing
  • Create Sponsored Products ads
  • Sign up for Fulfillment by Amazon (FBA), enroll products, and send inventory to Amazon
  • Create Multi-Channel Fulfillment (MCF) orders
  • Create Lightning or 7-Day Deals
  • Create Amazon Coupon

If you’re a brand owner, you should also:

  • Enroll your brand in Amazon Brand Registry
  • Enroll products in Amazon Vine
  • Create Sponsored Brands ads
  • Create and add A+ Content to your product listings
  • While exploring these services, you can also enjoy over $50,000 in New Seller Incentives.

While exploring these services, you can also enjoy over $50,000 in New Seller Incentives.

Are existing sellers eligible for the new seller incentives?

There are two possibilities depending on the scenario:

Generally, No

Existing sellers who are already selling on Amazon are not eligible for the New Seller Incentives on their existing accounts. These incentives are meant to attract new sellers to the platform.

Possible Exception

Existing sellers may be eligible for the New Seller Incentives if they are opening a new Amazon store in a different region where they haven’t sold before. 

For example, if you already sell in the US, you wouldn’t qualify for the incentives by opening another US store. But, if you open a new store in Europe (like France or Italy) for the first time, you might be eligible.

Where to look for New Seller Incentives/ Where can you find your New Seller Incentives?

There are two ways to access information on New Seller Incentives:

Seller Central Navigation

Look for a section or tab labeled “New Seller Incentives” within your Seller Central dashboard. 

This section might be located on the left-hand navigation menu or under a category related to “Promotions” or “Benefits.” 

Once you find it, you should be able to see details like:

  1. Available incentives you qualify for (e.g., free credits, bonus on sales)
  2. Progress towards earning certain incentives (e.g., amount earned towards bonus)
  3. Links to additional resources explaining the program

Search Seller Central Resources

Amazon Seller Central provides a wealth of information for sellers. 

Use the search bar within Seller Central and type in “New Seller Incentives.” 

This should lead you to dedicated information pages that explain:

  1. The program overview and its benefits
  2. Eligibility requirements for each incentive
  3. How to track your progress and claim rewards (if applicable)

How to redeem your New Seller Incentives?

There isn’t a direct redemption process for most New Seller Incentives. 

Many benefits like free FBA storage or advertising credits are automatically applied. Here’s how to find information and see if any manual steps are required:

Locate “New Seller Incentives” in Seller Central

  • Look for a section or tab labeled “New Seller Incentives” within your Seller Central dashboard. 

It might be on the left-hand navigation menu or under a category related to “Promotions” or “Benefits.”

Review Your Available Incentives

  • Once you find the section, you should see details on the available incentives you qualify for. 

This might include:

  • Free FBA storage duration
  • Amount of Sponsored Products credit
  • Number of Amazon Vine review credits (if applicable)

Check for Manual Redemptions (if applicable):

  • In some cases, there might be a specific incentive requiring manual steps. 

For example, enrolling in Vine to use your review credits.

  • The “New Seller Incentives” section or linked resources should explain any necessary actions.
NOTE:
Here's a breakdown of how some incentives are typically applied:
Free FBA Storage
This is automatically applied to your FBA inventory during the eligible period. You won't need to take any additional steps.
Advertising Credits
These credits are automatically added to your advertising budget and can be used when creating Sponsored Products campaigns.
Coupon Credits
You might need to create Amazon coupons using the allocated credit within Seller Central.
Brand Owner Bonus
This bonus is automatically applied towards your referral fees after reaching the sales thresholds.
Vine Review Credits
You'll need to enroll your products in the Amazon Vine program within 90 days of becoming eligible to use these credits.
Additional Tips:
The layout of Seller Central can change. If you can't find the section easily, use the search bar within Seller Central and type in "New Seller Incentives."
Refer to Amazon Seller Central resources for detailed information on each incentive and any specific redemption steps.

What is the best way to use your New Seller Incentives?

The best way to use your New Seller Incentives on Amazon depends on your specific products and goals, but here’s a strategic approach to maximize their value:

1. Prioritize Visibility and Sales Growth

  • Advertising Credits

These are powerful tools to increase product visibility and drive sales. Start with Sponsored Products Ads to target relevant keywords and get your products seen by potential buyers actively searching for similar items. This can increase your sales and help generate reviews, which are crucial for building trust.

  • Amazon Coupons

Use these to run targeted promotions and attract new customers. Consider offering discounts on strategic products to attract first-time buyers and potentially convert them into repeat customers.

  • Vine Review Credits

If eligible, enroll in Amazon Vine to get early reviews from trusted reviewers. Positive reviews can significantly boost customer confidence and influence purchasing decisions.

2. Optimize Your Fulfillment:

  • Free FBA Storage

Take advantage of free storage to reduce upfront costs and potentially improve delivery times for your customers. This can be particularly beneficial if you’re launching with a larger inventory or seasonal products.

3. Leverage Brand Building Tools (For Brand Owners):

  • Brand Registry Bonus

This bonus rewards brand owners for increased sales. Focus on optimizing your product listings with high-quality images, detailed descriptions, and A+ Content to showcase your brand value and encourage sales.

Do not forget to, 

  • Track Your Results

Monitor the performance of your ads, coupons, and Vine reviews. Analyze what’s working and adjust your strategy accordingly.

  • Focus on Long-Term Growth

While initial sales are important, use incentives strategically to build a strong foundation for your brand. Positive reviews, customer satisfaction, and repeat business are key to long-term success.

Note:

  • Research Competitors: See how successful sellers in your niche are using these tools.
  • Consult Seller Central Resources: Amazon offers comprehensive guides and tutorials to help you leverage each incentive effectively.

By following these steps and tailoring the approach to your specific goals, you can unlock the full potential of your New Seller Incentives and establish a successful  business on Amazon.

Final Thoughts

The New Seller Incentives program brings optimism for new businesses. 

This program is designed to help new businesses alleviate some of the financial burden and provide marketing support to drive sales and create brand awareness in the competitive marketplace.

By offering these incentives, the program aims to foster a more level playing field and empower new sellers to thrive in the e-commerce ecosystem.

The program is designed to help new sellers gain visibility and traction in the competitive online marketplace. With these incentives, you can begin building a strong foundation for your brand and reaching a wider audience.

NSI helps you compete effectively and potentially turn your product into a success story. 

So, get ready to use these incentives to launch your Amazon dream!

5 thoughts on “Amazon New Seller Incentives: New Sellers’ Choice for Branding

  1. Hats off to the AMZ Prep team for spearheading this initiative that not only provides financial incentives but also fosters a sense of community and solidarity among Amazon sellers

  2. It’s refreshing to see finally Amazon company prioritize the success and well-being of its sellers.

  3. As a new Amazon seller, I can’t thank the AMZ Prep team enough for introducing this incredible incentive program! It’s like a lifeline for us, boosting our confidence and motivation to thrive in this competitive marketplace

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