If you are selling consumables or products that require frequent purchases, you are most probably familiar with the Amazon.com, Inc. (“Amazon”) Subscribe and Save program.
With the ever increasing selection and choice on the Amazon marketplace, customer loyalty is key to a brand’s success. In the fast-moving product categories such as beauty, groceries and supplements, getting customers to regularly purchase your products continually should be a long-term goal.
Amazon helps brands create this ongoing loyalty by allowing sellers to enroll their products with the Subscribe and Save program, automatically offering the customer savings if they sign up for a subscription-based model.
Amazon’s Subscribe and Save Program
Customers that sign up to Amazon’s Subscribe and Save program can benefit from a savings between 5-20% on subscription-enabled products. The level of discount is dependent on the product category and how many products the customer subscribes to. For example, customers can receive a discount of 15% if they receive five or more subscribed products in a given month to a single address with auto-deliveries. Customers are also able to select the frequency in which they want to receive the items. This could be from once a month to once every six months. Customers can also change the frequency and quantity they receive at any time.
How to Enroll Your Products in Subscribe and Save
If a seller has products they want to enroll in the program, they first want to ensure their items are eligible. To be eligible, you must have an FBA account that is in good standing, i.e. meeting all the seller performance metrics, afeedback ratingof 4.7 or higher and a minimum of three months selling products through the FBA program. If you are eligible, you need to enable Subscribe and Save for your Seller Central account. To do this, go to Settings, Fulfillment by Amazon and scroll down to Subscription Settings and enable Subscribe & Save. You can then add the products of your choice to the program. If the system does not allow you to enable this feature, this means your account is not currently eligible.
With Subscribe & Save, sellers only have the option to enroll their listings. They have no influence over the saving or subscription frequency. Sellers must calculate the maximum percent discount for their product category in their pricing calculations to ensure they remain profitable after offering this incentive.
Try Before You Subscribe
Most customers will subscribe once they have tried the product and are happy with the item. Some sellers may offer trial size packs to create an attractive price point to entice the customer to try it first. Then if they like it, the seller offers additional savings on the larger, multiple pack, in addition to the customer benefiting from savings by signing up to the Subscribe & Save program. This helps increase the basket size and attracts customers to place regular orders. It also gives the seller room for higher margins to allow them to offer these level of savings.
Remember that the first order and experience with the product is the deciding factor as to whether a buyer will subscribe in the future. Make that one chance count.
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.