The Amazon Subscribe & Save program counts tens of millions of global subscribers and hundreds of millions of subscriptions. If you're an Amazon seller interested in cultivating repeat customers with cost-effective methods, you should consider using the Subscribe & Save option. Read on to discover why it’s an excellent opportunity for shoppers to save money and for Amazon sellers to boost profits and customer loyalty.
What is Subscribe & Save on Amazon?
Amazon’s Subscribe & Save is a unique program offering consumers an easy and cost-effective way to shop from thousands of eligible products. On the other hand, those FBA Amazon sellers who meet the program’s requirements can gain loyal customers and achieve profitable results.
How it Works for Amazon Customers
Amazon Subscribe & Save helps customers save time and money with recurring and scheduled purchases of essential goods. There is a default discount of 5% on products bought with this subscription plan, and sellers subsidize it. In fact, Amazon shoppers can save up to 15% by applying to this program and getting automatic deliveries of their preferred everyday products, such as coffee, dog food, toilet paper, cleaning supplies, etc.
By purchasing with Subscribe & Save, Amazon customers receive the full eCommerce experience: discounted prices, free shipping, and the convenience of regularly scheduled deliveries. In addition, this program comes with zero costs, and they can cancel or adjust their subscription at any time. According to Amazon, global shoppers who participated in Subscribe and Save reduced spending by over $1 billion during the 12 months before May 2023. They can enjoy higher discounts if they buy at least five items with each repeat delivery. And with Amazon Family accounts, customers can save up to 20% on baby products.
How to Apply for Subscribe & Save
Amazon shoppers interested in this service have three quick and easy steps to follow:
- Shop from hundreds of thousands of eligible products.
- Select the suitable quantity and delivery schedule.
- Create a subscription and await a free auto-delivery.
How it Works for Amazon Sellers
Amazon sellers can expect more regular customers by offering a standard discount of 5%. It goes up to 15% (usually 10%) when people order five or more items in one auto-delivery to one address. Consumers can schedule recurring deliveries in increments of two weeks up to six months, making Amazon’s Subscribe & Save a smart business tactic in the long run.
Since shoppers are motivated to get higher discounts by purchasing more items, you can expect to sell more products. Of course, this makes sense if you sell items people commonly purchase, such as baby products, health & beauty products, household consumable goods, pet products, office supplies, etc. The Amazon program’s convenience and money-saving aspect will help you attract more people and convert them into loyal customers.
You don’t have to worry about applying for the Subscribe and Save program since Amazon will automatically add your products as long as you are eligible.
How to be Eligible for Subscribe & Save
Amazon sellers need to meet the following criteria to qualify:
- Be a part of the Amazon Brand Registry
- Sell products via Fulfillment by Amazon (FBA)
- Have an active selling account for a minimum of 3 months
- Meet specific metrics of fulfillment history and in-stock rate, sales performance, product category, and average selling price. The key is to have a fulfillment history with an 85% in-stock rate and a selling feedback rating of 4.7 or higher.
Amazon started automatically registering products of eligible FBA sellers for Subscribe & Save in December 2019. So, if you do not want to participate in the program, you must go to your Manage Inventory page and manually opt out of automatic enrollment.
How to Benefit from Subscribe & Save as an Amazon Seller
Ensure your products belong to categories qualified for Subscribe & Save and that you meet the specific requirements mentioned above. Once you get that covered, it is time to start making the most of this program and enjoying its benefits.
As long as you are an eligible FBA seller in the right category and can ensure to keep your products in stock, and with the right amount of patience and flexibility, you can see profitable results after some time. This solution won’t boost your sales overnight, but it can attract new customers who can become regular buyers.
Subscribe & Save Strategies for Amazon Sellers
To help you maximize the benefits of Amazon Subscribe & Save, we have put together strategic steps to follow as a seller. By applying them, you will be on the right track to enhance customer loyalty and increase your revenue.
- Start by optimizing your product listings. Ensure they are clear, well written, enticing, and highlight subscription benefits.
- Offer discounts for subscriptions to attract more Amazon customers. Observe your competitors and adjust prices strategically.
- Partake in the Subscribe & Save program with a variety of products. This way, you can cater to different customer needs.
- Create promotions and bundles for subscribed items. This will encourage consumers to subscribe to multiple products.
- Monitor and review the Amazon program's performance regularly. Adjust your strategies based on customer feedback and sales data.
Evergreen Vs. Seasonal Amazon Subscribe & Save Strategies
An important aspect of the Subscribe and Save strategies is the dynamics of evergreen and seasonal products. It is crucial to understand their differences to profit from this Amazon program.
With an evergreen strategy, you can expect steady, year-round sales growth. Since evergreen products maintain consistent demand, you will see benefits over time. These include long-term stability and customer loyalty.
On the other hand, a seasonal strategy is perfect for catering to seasonal trends and capitalizing on high demand during specific periods. If your goal is quick bursts of sales during eCommerce events such as Prime Day and Cyber Week, you should introduce seasonal discounts.
In summary, align your Subscribe & Save efforts with your product's nature and customer preferences. Choose an evergreen strategy for stability or seasonal for targeted sales boosts.
Both online shoppers and FBA Amazon sellers can benefit from the Amazon Subscribe & Save program. Customers can save time and money by subscribing to it and purchasing essential and in-demand products regularly. They can easily change or cancel their automatic orders, and by ordering more items, they will receive higher discounts.
The main advantage of this Amazon program for sellers is that it helps them to attract and get loyal, repeat customers. With the right strategy, evergreen or seasonal, they can expect to increase their sales and get profitable results.