As an Amazon FBA seller, you must use all available tools to promote sales and develop your business. Amazon Subscribe & Save is one of the most powerful services available, allowing users to set up regular orders for things they commonly purchase.
It’s a terrific approach for Amazon sellers to keep consumers and increase recurring revenue for their businesses.
How it works
- Product. Customers use the Subscribe & Save option when they want to get things on a regular basis.
• Frequency. They choose how frequently the products should be supplied (monthly, every two months, etc.).
• Shipping. Amazon automatically ships the merchandise to them on the specified schedule.
Customers receive a discount on the goods, often approximately 5%, and can cancel or change their membership at any time.
For businesses that sell consumable or one-time items that consumers would need to reorder on a monthly basis, such as
- baby diapers
- laundry detergent
- daily vitamins
- paper towels
- toothpaste
- coffee
This post will explain how Amazon Subscribe & Save operates, walk you through using it, and look into how it can affect your FBA Business.
- How Amazon’s Subscribe & Save works
- Amazon Subscribe & Save FBA eligibility requirements
- What discounts can sellers set with Subscribe & Save?
- Is Subscribe & Save right for your Amazon business?
How to Subscribe& Save on Amazon
Sellers can offer their consumers the choice of automatically reordering their products and specifying how frequently they wish to receive them by using Amazon’s subscription model.
If you offer supplements, for example, and the supply lasts for thirty days, your customers can automatically get an order once a month without having to log in and click the “order” button.
If you offer supplements, for example, and the supply lasts for thirty days, your customers can automatically get an order once a month without having to log in and click the “order” button.
Customers who opt to subscribe to a product will usually receive a base discount, which ranges from 0% to 15% and is supported by the seller and, in certain situations, an extra 5% from Amazon. More details on the discounts are provided below.
Subscribe & Save Orders Come in Two Types:
- The first sign-up sequence. The buyer chooses their preferred frequency and clicks to subscribe in the Buy Box.
• Order of replenishment. Depending on the frequency the customer selected at the original sign-up order, these orders are automatically placed.
It’s clear that customers would benefit from Amazon’s Subscribe & Save feature, but what about sellers?
It’s clear that customers would benefit from Amazon’s Subscribe & Save feature, but what about sellers?
How sellers benefit from Amazon’s Subscribe & Save feature
35% of American customers have used the Subscribe & Save option to purchase products, and the majority of those consumers intend to keep doing so, according to Consumer Trends Report. In the future, 36% of consumers said they would think about subscribing to a product.
Subscribe &Save purchases are more likely to be made by Amazon devotees:
51% of Prime subscribers have utilized it.
45% of consumers who identify as “brand loyal” have utilized it.
Just this offers sellers a great chance to guarantee future sales and profits. Enrolling in Subscribe & Save can provide you a surefire approach to lock in future sales while maintaining your competitiveness in the market if you sell any kind of consumable or single-use goods.
Other key benefits of Amazon Subscribe & Save for sellers include
- Grow sales on a regular basis consistently:
The best thing about this subscription feature is that it allows users to “set it and forget it” when it comes to choosing what to buy. Their products just appear at their door; they don’t need to recall which brand they ordered from or where to look for it.
Sellers profit significantly from this since it lets you lock in future sales.
Furthermore, according to information from Consumer Trends Report, Amazon’s Subscribe & Save business model is here to stay:
- 82% of subscribers to Subscribe & Save said they appreciate being able to purchase on Amazon.com.
- 75% of respondents say they would only shop at Amazon if they could only purchase goods from one retailer.
- 64% said they were “brand loyal.”
Additionally, users of Subscribe & Save may grow more devoted to a vendor and generate a sizable amount of revenue:
- 70% of Subscribe & Save users are prepared to pay more than $100 on a single Amazon product.
- 61% buy things on Amazon at least once a week.
- The following are the top product categories where Subscribe & Save customers have made purchases:
- food (of which 55% have recently shopped)
- Personal Care & Beauty (42%).
- Pet Supplies (35%).
- Clothes (31%).
- Kitchen & Home (28%)
- Promote client loyalty:
As a seller, Subscribe & Save enables you to attract recurring clients with little out of pocket. Simply having the customer place regular orders from you fosters customer loyalty.
Seller testimonials on Amazon’s “About” page about Subscribe & Save indicate that one seller had a significant rise in recurring business, going from 10% to 30%. Consider what that may accomplish for your company!
- Increase brand awareness:
As previously mentioned, consumers will come to like and recognise your brand.
A fresh private label brand means that very few people will be familiar with you. Customers will eventually come to trust and be loyal to your brand if you let them subscribe to your items.
- Enrolling your products in Subscribe & Save has the following extra advantages:
It helps your clients save money and time. Customers will receive a small discount on each order in addition to the convenience of a recurring delivery. Every time they run low, they are no longer need to sign in and reorder.
- Amazon offers an extra five percent off. Customers who order five or more memberships in one delivery will receive a free extra 5% off from Amazon (limited time only; see below for details).
- Products that qualify immediately become enrolled. Amazon will automatically enrol your products in the Subscribe &Saveprogramme at the 0% base discount if they qualify. You, as the vendor, incur no costs if it is left at 0%. Consumers who simply want the convenience of a recurring delivery can subscribe. You have the option to stop the auto-enrollment at any time.
- Customers can schedule deliveries for once a month. Clients can select how often they would like to receive their orders, ranging from one to six months. This increases customer retention for your business and helps you get devoted customers with less out-of-pocket expenditure. It also makes sure that your customers will remember who they shopped from months later.
- Monthly delivery intervals can be specified by subscribers. Clients can select the interval for which they would want to receive their orders, ranging from one to six months. By guaranteeing that your clients remember who they ordered from months later, this helps build devoted customers with no financial outlay and boosts customer retention for your business.
Drawbacks of Amazon Sellers’ Subscribe & Save Programme
Though it has numerous advantages, there are also some possible disadvantages to take into account. Let’s examine Amazon Subscribe & Save’s drawbacks:
- Reduced profit margins. Your profit margins may drop if you give a discount on your goods, therefore it’s critical to carefully analyse the discount you offer and determine whether it still permits you to turn a profit.
- Possible problems with the inventory. You might not be able to fill all of the subscription orders if your product becomes very successful and you haven’t planned for enough inventory, which could result in unfavorable customer feedback. For additional information, see our inventory management guide!
- Restricted choice of products. You might not be able to sign up all of your purchases for Amazon Subscribe & Save because not all products are eligible for the program.
Save & Subscribe FBA Eligibility Conditions
- Prior to joining, there are requirements that you must fulfill in order to utilise the Subscribe & Save feature.
A history of fulfillment with an 85% in-stock percentage
- An expert seller’s account that is in good standing
- You need to register your brand with Amazon Brand Registry.
- Inventory cannot be used to enroll in Subscribe & Save using FBM inventory; instead, it must be in an FBA warehouse.
- FBA vendor with a minimum rating of 4.7 in seller feedback
- FBA seller for at least 3 months
READ MORE | Comparison of Amazon FBA and FBM
How to determine whether your goods qualify for Subscribe & Save
At no additional cost to you, Amazon will automatically enroll qualifying products at the 0% base discount rate. If you would like to opt out, you can take your items out of auto-enrollment.
To see which products are enrolled, specify your settings for discount funding and automatic enrollment, view each subscription for every item you have enrolled, and dispatch and replace inventory, go to your Manage Subscription Products page.
Send an email to email [email protected]. tenor new items that haven’t been registered automatically.
Which goods are you able to offer on Amazon Subscribe & Save?
With Subscribe & Save, only products in specific categories can be sold. The list of departments that qualify is as follows:
Grocery
- Food Store Health & Infant Care
- Tools & Parts for Automobiles Technology
- Equipment & Renovation
- Industrial Resources
- Kitchen, Garden, and Lawn
- Instruments of Music
- Office Materials
- Outdoor Pet Provisions
- Athletic Games
Please take note that your products are not eligible for Subscribe & Save if they are classified in a category that is not included here.
Get & Save Discounts
Sellers can provide an extra coupon to consumers who sign up for their first Subscribe & Save order on your product as a way to encourage more customers to subscribe.
Customers who order using Subscribe & Save are the only ones who can view the 15% coupon in the screenshot above.
How to Configure a Coupon for Subscribe & Save
Go to Seller Ce
ntral’s Coupons section to create a coupon just for Subscribe & Save orders.
Which discounts are available to merchants using Subscribe & Save?
As a seller on Amazon, you can select from three standard discounts:
- 0%
- 5%
- 10%
Regardless of the base discount you select, Amazon will pay an extra 5% off for tiered shipments for a limited period of time.
This means that, at no additional expense to the vendor, Amazon will provide the client a 5% discount if they receive five or more subscriptions delivered on the same delivery date.
In the event that you signed up for Subscribe & Save after November 5, 2019, all categories are subject to these discounts and tiered discounts.
The following product category fee schedule is applicable if your products were enrolled prior to November 5, 2019:
How the fees as a seller operate
The discount that you give the consumer is your responsibility as the seller. In other words, you are in charge of “funding” the 5% discount that you offer to a subscriber.
Joining the Subscribe & Save program might not be a smart choice for products with lower margins (<10%–15%).
It goes without saying that Amazon wants to offer its customers the greatest deals available, but there’s another reason they advise funding your membership at 10%.
According to an internal study conducted by Amazon, there was a conversion rate increase of up to 1.8X for 10% discounts when comparing ASIN enrollment at the 10%/15% discount vs. a 0%/5% discount.
Consider how much more revenue your company may bring in with even a modest improvement in conversion rates.
Is Subscribe & Save the best option for your Amazon company?
Subscribe & Save is an excellent approach to save your consumers money and produce steady, dependable sales if you have a consumable, one-time product that they regularly use and reorder.
However, like with any other Amazon selling approach, you should conduct tests to see whether it has a beneficial or bad effect on your company.
You can utilize the two reports that Amazon gives you to assess performance and project your Subscribe & Save sales.
- Obtain and save the performance report
A trailing four-week view of products sent, the proportion of orders missed because of stock outs, the average post-discount selling price, and the average discount for each SKU are all provided by Amazon’s Subscribe & Save (SnS) performance report.
Make greater use of this data to plan and manage your inventory levels and to keep prices stable. Continue adhering to the program’s rules and regulations.
Under “Sales” on the left-hand side, you’ll find “Subscribe & Save Performance.” You can download an Excel spreadsheet from this page that displays pricing, units shipped, out-of-stock percentage, and discount % for the previous four weeks of data.
- Get and Save the Forecasting Report
Based on current memberships and past sales, Amazon’s Subscribe & Save forecasting report offers an eight-week sales projection.
It will show you all of the scheduled deliveries for the following eight weeks, which will help you better plan your inventory purchases.
Hover your cursor over “Reports” in Seller Central and select “Fulfillment” to get this report.
Under “Inventory” on the left, you’ll see “Subscribe & Save Forecasting.” You can get an eight-week overview of inventory forecasts for the FBA Subscribe & Save programmed by downloading an excel document from this page.
Undoubtedly, Subscribe & Save is a fantastic method to increase brand exposure and customer loyalty while generating steady revenue. It seems obvious to me, if you are eligible! Try out various price breaks and track your outcomes.
Please share your thoughts in the comment section below if Subscribe & Save has helped your Amazon business.
