Amazon’s 2024 New Seller Incentives: Big Opportunities to Expand into the European Market

Amazon has become a complex landscape for sellers, hasn’t it? Initially, the phrase “land of opportunity” truly applied to Amazon. Sellers could list almost anything and reach a large audience with minimal competition, earning thousands of dollars. Stories of sellers making big profits from everything, from virtual pets to bicycle parts, were widespread.

However, as Amazon grew, so did the challenges. Competition intensified, and millions of sellers scrambled to stand out. Amazon’s algorithms became more complex, making it harder for new and small sellers to get noticed. Fees also kept rising. Sellers began to feel that the platform was becoming less seller-friendly, with complaints about strict regulations, account suspensions, and difficulty accessing customer service. But in 2024, Amazon made a move that will delight sellers… introducing the “New Seller Incentives” program.

What Are New Seller Incentives?

Amazon’s New Seller Incentives (NSI) program is designed to help new sellers transition from starting out to scaling up. This program provides access to essential tools such as brand protection, logistics services, ad credits, and coupons. Using these tools helps you save money and avoid common early-stage challenges. NSI has been available since March 2022 in the U.S., Japan, and select European countries, and as of March 1, 2024, an even better version is rolling out!

What Are the Benefits of New Seller Incentives?

The New Seller Incentives program offers a variety of benefits to help you grow your business and establish a strong position on the platform:

FBA and Storage Costs “Out,” Efficiency “In”

• Free FBA Storage: Free storage for the first year can save you an average of €50 per month, adding up to a total of €600 annually.
• Discounted FBA Logistics Fees: A 10% discount on FBA logistics fees can save a seller with €100 in monthly logistics costs around €120 annually.

Increased Product Visibility and Sales Growth

• Sponsored Product Credits: €45 in ad credits can boost your sales by 20%. For instance, a seller with €2,000 in monthly sales could generate an additional €400 in revenue with this credit.
• Amazon Coupon Credits: €45 in coupon credits can be used to attract customers. With an average discount of 10%, this can generate €450 in sales.
• Vine Review Credits: €180 in early review credits can boost your product’s credibility and increase sales by 15%. A seller making €1,000 a month could earn an additional €150 from these reviews.

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

• Brand Registry Bonus: A 10% rebate on the first €45,000 in sales provides a refund of €4,500. For the next €855,000 in sales, a 5% rebate offers a return of €42,750.

In total, you could earn a bonus of up to €47,250.

How to Access New Seller Incentives?

You can enroll in the New Seller Incentives program through your seller dashboard. Some features are activated automatically:

• Automatic Enrollment: New sellers who meet the eligibility criteria (likely including having a Professional Seller Plan and starting after a specific date) may be automatically enrolled in NSI.
• Seller Central Access: Visit Amazon Seller Central and look for a dedicated section for New Seller Incentives. If you’re not automatically enrolled, you can sign up from there.

Which Regions Are Eligible for These Incentives?

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

• United States
• Japan
• Europe (particularly the United Kingdom, Germany, France, Italy, and Spain)

In Europe, existing sellers can only benefit from these incentives once per region. Therefore, if you’re already selling in a European country, you won’t be eligible for incentives in that market again. However, if you’re starting in a new European country for the first time, you can take advantage of these opportunities.

Why Is the 90-Day “Honeymoon” Period Important?

Program data reveals that new sellers who actively use Amazon’s tools during this 90-day window gain a significant advantage. These tools include FBA (logistics), Brand Registry (brand protection), Amazon Advertising (ads), and Coupons (promotion discounts). Using these tools strategically can significantly boost new sellers’ performance.

What Do These Incentives Mean for You?

To put it in everyday terms, let’s compare these incentives to opening a physical store:

• Free FBA Storage: Imagine opening a boutique and being told you can use the space rent-free for a year. That would save you €50 a month, allowing you to spend your money on marketing or new inventory.
• Discounted FBA Logistics Fees: It’s like having a shipping company that gives you a 10% discount. If you usually spend €100 a month on shipping, this would save you €120 a year.
• Sponsored Product Credits: It’s like getting €45 in free advertising space in a local newspaper, attracting more customers and increasing your monthly sales by €400.
• Amazon Coupon Credits: Offering €45 worth of coupons with a 10% discount could attract new customers and generate €450 in sales.
• Vine Review Credits: Positive reviews for a new product can help other customers feel confident about purchasing it, boosting your monthly sales by €150.
• Brand Registry Bonus: Registering your store’s name earns you a 10% rebate on every €45,000 in sales, amounting to €4,500 back.

In total, you could receive up to €47,250 in bonuses.

How to Make the Most of New Seller Incentives?

The best way to leverage the New Seller Incentives program is to adopt a strategic approach based on your products and goals:

• Prioritize Visibility and Sales Growth:

  • Use ad credits to launch Sponsored Product Ads that target relevant keywords and attract potential buyers.
  • Offer discounts using Amazon coupons to attract new customers and encourage repeat purchases.
  • Gain customer trust with Vine reviews, boosting purchase decisions.

• Optimize Your Logistics:

  • Take advantage of free FBA storage to reduce inventory storage costs and speed up delivery to customers.

• Utilize Brand Building Tools (For Brand Owners):

  • Increase sales through brand registry. Optimize your product listings with high-quality images, detailed descriptions, and A+ Content.

Conclusion

So, what more can Amazon do? With the New Seller Incentives program, 2024 presents promising opportunities for new businesses venturing into this journey.

Brands using these incentives, valued at approximately €1.5 million, are continuing their e-commerce journeys with confidence and gaining a significant competitive edge.

You, too, can take advantage of these incentives and confidently move forward on the path to becoming a successful Amazon brand.

Don’t Waste Time, Don’t Leave Money on the Table!
At Europe-Seller, we’re here to help grow your business and support you on the path to being recognized alongside industry giants. Contact us now to learn more about New Seller Incentives and how we can help take your business to the next level.

Get in touch with us here, or visit our website today!

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