How Amazon Brand Incubator Can Help Launch Your Products
Article by: John L. Ghiorso
Prive Revaux: Amazon Brand Incubator Success Story
Amazon Brand Incubator is a new program that includes “Amazon Exclusives,” which was originally launched in 2015. And the biggest success story is Privé Revaux, a “bargain” sunglasses brand, that offers premium styles for only $30.
The brand Privé Revaux became an international brand in only a year. David Schottenstein, a well-known serial entrepreneur, is the co-founder. Launched in June 2017, it has brand ambassadors and investors such as famous actor Jamie Foxx as well as celebrities like Jennifer Lopez, Bella Hadid, and more wearing them. But what enabled its tremendous growth is a quality product created by great stylists, with back office and marketing support from Amazon Brand Incubator through Amazon Exclusives program.
Now Privé Revaux is sold in over 70 countries around the world, via mall kiosks, premium shops such as Nordstrom, as well as Amazon’s global e-commerce outreach. Privé Revaux’s own marketing strategy of celebrity endorsements, along with Amazon’s merchandising and distribution strategy caused the brand to grow at a rapid rate.
And Privé Revaux is only one of the brands Amazon Brand Incubator have helped launch. Others include Demerbox, the nearly indestructible premium Bluetooth speakers; PetChatz, the two-way video camera that can dispense treats and release aromatherapy scents for home alone pets; and Smart Nora, the non-contact anti-snoring solution.
What’s In It For Your Brand?
Amazon Brand Incubator is looking for unique products, the market disruptors, that simply need a little help to become international brand names. If you qualify, you get from Amazon:
- Fee Exemptions
Amazon “Deal of the Day” is a big deal for participants, but there’s a fee for the seller… unless you are a brand incubator participant. You can put up to 10 deals a month for zero fees. That’s up to $1500 savings a month.
- Display Ads
Brand Incubator participants get display ads that can target product types, i.e., “If you buy this, you’d also want that” ads. That may be worth up to $15,000.
- Product Videos
If a picture is worth a thousand words, how many words would a video that lets you tell your brand story and product be worth? Priceless.
- Brand Manager
You are assigned a brand manager from Amazon, who will help you figure out how to best utilize the various Amazon tools to support your brand.
In exchange for these perks, you have to give up the following:
- Additional 5% commission
Whatever your current Amazon sales commission rate is for your product category, add 5% to that to account for Brand Incubator costs.
- Only use Fulfillment by Amazon
Amazon will not let you fulfill the orders yourself under this program.
- Minimum commitment of 6 months
You can’t back out during that time, living with all the limitations above
- OPTIONAL Amazon Exclusives
If you choose to go with Amazon Exclusives, then you are limited to ONLY Amazon and your e-commerce website. There are heavy penalties if you break exclusivity, even by accident, up to suspension of your seller privileges on Amazon altogether. This limitation is what caused Amazon to rebrand Amazon Exclusives into the current Amazon Brand Incubator.
Under the new Amazon Brand Incubator, Amazon will let you choose to be exclusive or not. If you want to use other e-commerce sites, you can, but you don’t get what it calls “enhanced brand protection” and “additional marketing placements.” Amazon is not forthcoming with details on what those benefits mean or include.
Whether the program is worth it depends on a number of variables unique to your business. The good news is that Amazon now offers you the choice of being an Amazon exclusive or not. In both cases, if you have a unique brand and products, Amazon Brand Incubator can help you grow your business in a unique way.
We work with established brands, as well as well funded start-ups to navigate the challenges of selling on Amazon and maximize their sales potentials. Contact us to learn how we can help grow your business on Amazon.