What is Amazon SBA Program (Sold By Amazon)? Amazon SBA Program (Sold By Amazon) Review, Features

Sold by Amazon (SBA) is a new program that gives Amazon the power to automatically reprice select third-party products on the platform.

SBA Program Introduction

Sold by Amazon (SBA) offers a new, straight-forward selling experience for Fulfillment by Amazon (FBA) products, designed to help sellers grow their business. Sellers select products to be enrolled in SBA, and once enrolled, Amazon sets the price for those products. Amazon’s pricing engine adjusts the pricing so that buyers get competitive prices.

To ensure sellers have peace of mind, Amazon will provide a minimum gross receipts (MGP) amount for each SBA item to protect the seller's profits, and the seller will never receive a payment below this price. SBA items will appear to buyers as "shipped and sold by Amazon.com", just like items sold in Amazon's own stores.

How the SBA Works

Sellers who participate in the program enroll specific products into the SBA program. Once enrolled in the program, Amazon uses its dynamic pricing engine to recalculate prices in real time. This calculation is based on similar products found on Amazon and prices found on external e-commerce platforms such as Target and Walmart.

If you’re concerned about profits, you can establish a minimum gross proceeds (MGP) for each product. MGP is essentially a guaranteed payment. When a product is sold, Amazon will pay the product’s list price or the MGP, whichever is higher.

For example, if your MGP is $15 and Amazon sells the item for $18, you as the seller get to keep the full $18. If Amazon sells the item for $13, you still get to keep the $15.

The minimum selling price amount is not fixed. According to the terms and conditions, Amazon has the right to review the MGP amount after every 6 months, at which time Amazon can propose a new amount. You will be notified of the new changes and given 7 days to approve them. If you fail to take action, the product will be temporarily removed until you go into the admin console and confirm the new MGP or remove it from the SBA program.

How sellers can participate in SBA

To qualify for the SBA program, you must first register your brand through the Amazon Brand Registry. You must have a professional selling account and your products must be FBA products.

You can register for the SBA program by going to your Seller Central account, going to Settings, and clicking Account Info. Once you enter the page, there will be a Register button for Sold by Amazon. Click this button to register to participate.

However, registering for SBA does not automatically enroll your listings. You must enroll each product individually into the SBA program. This can be done by going to the Manage Inventory page. All eligible FBA product listings will display their MGP.

Please note that you can remove your listing from SBA at any time.

FAQ

Q: Is there a fee to join or participate in the Selling on Amazon program?

A: No. We still charge standard selling fees and FBA fees for your SBA-enrolled items, but there is no additional fee to join or participate in the SBA program.

Q: How does Amazon price my SBA products?

A: Products registered for SBA will be priced using Amazon's pricing engine, which provides dynamic pricing in real time to optimize the competitiveness of your products.

Q: Do I have a clear understanding of Amazon's MGP settings?

A: Yes. Once you sign up, Amazon will enable a new view in your Seller Central account called Selling on Amazon. This view is located below your Manage Inventory view. All of your eligible FBA listings and their Minimum Gross Proceeds (MGP) amounts will be loaded into this view. This will allow you to easily select the SKUs you want to enroll in the SBA program.

Q: Will MGP change?

A: It may change, but it usually happens every six months. If the minimum gross receipts (MGP) for any product registered with SBA changes, you will be notified in writing in advance and have 7 days to accept the new minimum gross receipts (MGP). To view products with new minimum gross receipts (MGP), go to the Amazon Selling Programs view and filter for "Waiting for MGP Update" under "SBA Issues."

Q: Can I run product promotions for SBA products?

A: Not yet. We are still working on enabling Sponsored Products for products registered with SBA. We will notify you once the feature is available.

Q: Can I run a flash sale for SBA products?

A: Not yet. We are still working on enabling the Lightning Deals feature for products enrolled in SBA, including Lightning Deals, Best Deals, and Deal of the Day. We will notify you as soon as these features are available.

Q: Who is responsible for processing merchandise returns for SBA items?

A: For sellers who volunteer to serve as early adopters, Amazon will currently process product returns at no additional cost to you. Amazon will notify you in advance if such changes occur.

Q: Is it possible for an SBA item to be disqualified from the program?

A: It may happen. We don't expect this to happen often, but if there are issues that cause a negative customer experience (such as product quality), the product may be disqualified from participating in the SBA program. If this happens, you will be notified in writing and you will need to unenroll the product in the program. You can view the affected products by going to the Selling on Amazon view and filtering for "Other Issues" under "SBA Issues."

Q: Will my FBA listings compete with SBA?

A: No. If you register a product with SBA, your SBA listing will replace the FBA listing for that product.