Customers who participate in the Amazon Subscribe & Save program benefit from the service, which allows them to sign up for regular deliveries of items that they use often. But until recently, FBA sellers were unable to offer products through the program.
Amazon.com, Inc. (“Amazon”) has officially announced that FBA sellers who meet certain standards will now be eligible to include offers in the program. Since the program is designed for buyers who want to purchase the same products on a regular basis, this may be great news for merchants.
How to Qualify
In order to participate in the Subscribe & Save service, FBA sellers must meet Amazon’s eligibility specifications. These include:
- A seller feedback rating of 4.7 or above
- Account must be in good standing and active for three or more months
- Positive seller performance metrics
- Good sales history
In order to take part in the program, sellers must demonstrate that they are qualified by meeting these requirements.
While the exact conditions for eligibility are not clearly specified, it is evident that positive seller performance is an important factor. After all, Amazon needs to be sure that selected sellers can be relied on to maintain stock and deliver a good customer experience each time an order is placed.
As a side note, eComEngine’s automated feedback management platform, FeedbackFive, is designed to help merchants in that area, cultivating positive feedback and providing great customer service. For serious FBA sellers, a tool like FeedbackFive proves invaluable, especially when it comes to meeting standards such as those set by Amazon for participation in the Subscribe & Save service.
The Fine Print
The Subscribe & Save program allows customers to select items, quantities and frequency of delivery. They have the option to cancel at any time. Customers save 5% on each subscription. If they opted to have 5 monthly subscriptions prior to August 31, 2016, they receive up to a 15% discount on their entire order.
FBA sellers must continue to offer this product discount for customers who subscribed before August 31st. They are also required to adhere to Amazon’s 5% discount pricing. However, for most sellers this is a small price to pay for recurring orders.
Replenishment orders are created automatically based on the delivery frequency selected by the customer. The order frequency can be set for anytime between one and six months. If you’re selling hair styling products, your customers may only need to reorder once every other month, while they may need to reorder pet food on a much more frequent basis. The Subscribe & Save program allows them the freedom to choose how often they’d like to order products without the need to remember to reorder. Amazon sends an automated notice prior to fulfilling each Subscribe & Save order, so the customer knows when to expect the next shipment.
Things to Consider
Participating in the Subscribe & Save service as an FBA merchant offers many benefits, including regular sales and more visibility on the Amazon marketplace through the Subscribe & Save store. Since you’re selling through the FBA program, your orders are automatically picked, packed and shipped through Amazon, saving you time.
However, there are a number of factors to consider when deciding whether this option is a good fit for your product. What are the profit margins on your products? How much will those margins be affected by the 5% discount required for subscriptions? The Buy Box becomes more competitive than ever. In order for your Subscribe & Save item to be displayed for a sign-up order, your item must be the Buy Box product. Since the Subscribe & Save program is set to be a recurring process, the initial order determines who will be fulfilling the customer’s continued orders.
Managing and maintaining your inventory is also important to success as an FBA Subscribe & Save merchant. The Subscribe & Save service requires sellers to keep an in-stock percentage of 85% or above, so knowing when to reorder products is key. RestockPro from eComEngine provides the data needed to make those kinds of decisions; it was developed to help sellers manage their FBA inventory, streamline restocking, and much more.
Get the Latest eCommerce News
Stay in the know about eCommerce news by subscribing to our newsletter.