Amazon Subscribe & Save program was launched back in 2007, and it is a program that offers products with discount rates to customers. It is a way to boost sales and build a loyal base of loyal customers.
While the sellers see it as an opportunity to boost their sales, the customers also benefit from it. It allows them to get their favorite programs with discounts, plus they can replenish their stock on time without thinking about it.
Subscribe & Save: What is It?
As mentioned above, Subscribe & Save is a program that allows customers to buy products at discounted rates. The customer subscribes to a product and gets the product with a discount rate of 5%. If the same customer subscribes to more than five products, the discount rate is 10% or 15%, depending on the product category.
It is also worth mentioning that only some of the categories are available on this program. Below are some of the categories included in the Subscribe & Save program:
- Health and baby care
- Home tools
- Home Improvement
- Lawn and Garden
- Pet supplies
As an Amazon seller, you can check the eligibility for Amazon’s Subscribe & Save with the help of Seller Central.
How Does Subscribe & Save Program Work?
Customers subscribe to a product and receive recurring and scheduled deliveries of the products they use regularly. It is a great way for customers to save money on things they regularly buy, such as groceries, food, toiletries, etc.
Thousands of products are available for customers to choose from and decide what they want. They can select their favorites and schedule them for automatic delivery every one to six months. These products they can buy at reduced prices. They can also skip an order or cancel the subscription at any time. The cancellation is free, so it is a low risk for customers. If a customer selects less than five products for the month, as said, they get a small discount, but if they subscribe to 5 and more products, the discount goes up. This is one of the benefits for the customers, and the program looks more appealing.
Sellers’ Benefits – Subscribe & Save Program
As mentioned above, Subscribe & Save program is appealing to the customers, but what about the sellers? The program seems reasonable, but selling discount products looks less appealing to Amazon sellers. But if you are business oriented and looking to boost your sales, selling with discount rates can make you more money in the long run.
Customers who order their items and subscribe to some of your products are more likely to buy some of your other products too. This way, you will have some loyal customers who will buy regularly from you. Once your customer is enrolled in your Subscribe & Save program, you do not need to worry about competitors, and all you have to do is keep your customers and the delivery dates.
If you are considering this program, as mentioned above, you will have to check whether your categories are in Subscribe & Save program.
Also, you will have to pay attention to the main three topics:
- Tiered discount options
- Funding discounts
- How products are enrolled
Tiered Discount Options
Previously, the discount was determined by the category the products were in. Now the sellers can choose their discount rates, either a 0%, 5%, or 10% discount.
According to Amazon, the 10% discount products can increase your sales by 1.8x. But only being able to choose 5% or 10% can help the seller make more strategic decisions.
Also, once the customer has ordered the product through this program at a discounted price, it stays locked until the customer skips or cancels the subscription. Also, Amazon notifies the customers if the price increases, and they can skip or cancel their subscriptions.
Also, one of the most important questions is who will fund the discounts if the customer is subscribed to 5 and more products. In the past, sellers paid for this discount even when customers were not subscribed to the same seller. Now the funding is up to Amazon for five and more products monthly subscriptions, but it is made to a standard 5% above the seller discount.
Enrollment of Products
Amazon now determines which products are relevant for the Subscribe and Save program and automatically enables Subscribe and Save at a 0% discount. If you enable a product at a 0% discount and the customer subscribes to it, Amazon will fund the 5% discount if the same customer has five and more products in their monthly subscription.
Also, one of the key points is that you always need to have stock of the enrolled products to keep the customer’s subscription. If Amazon determines that you are out of stock, your products can not be enrolled in this program.
The above paragraphs were a detailed explanation of the Subscribe & Save program. Whether you are interested or not, it is good to know some of the key points.
According to Amazon and our experiences, this program is a way to make more conversions and have some loyal customers.