Why Consider Amazon Subscribe & Save Program for Selling?

August 8, 2024
Why Consider Amazon Subscribe & Save Program for Selling?
Reading Time: 9 minutes

The Amazon Subscribe & Save program offers a convenient solution for both customers and sellers, allowing for recurring deliveries of frequently used products. Customers benefit from discounts on their orders, while sellers can attract and retain customers by participating in the program. Through tiered savings, streamlined ordering processes, and enhanced visibility, the Subscribe & Save program fosters customer loyalty and provides added value and convenience for all parties involved.

What Is Amazon Subscribe & Save Program?

Amazon Subscribe & Save is a program offered by Amazon that allows both Amazon customers and Amazon Business customers to enjoy the convenience of recurring, scheduled deliveries for products they frequently use.

When customers subscribe to Amazon Subscribe & Save, they receive a base discount on their deliveries, with the cost of this discount being covered by you as the seller. However, the benefits don’t stop there. Customers who accumulate five or more subscriptions in a single delivery reach tiered status, unlocking even greater savings on all products included in their delivery.

This tiered system encourages customers to consolidate their purchases and subscribe to a broader range of products, thereby maximizing their savings and streamlining their shopping experience through regular, automated deliveries. As a seller, participating in FBA Subscribe & Save can help you attract and retain customers while also providing them with added value and convenience.

How Does Amazon Subscribe & Save Work?

Customers can peruse millions of items in the Subscribe and Save store and make selections. In contrast to the standard “Add to Basket” button on Amazon, this process allows customers to set delivery frequencies and click “Subscribe Now.”

Upon subscribing, the webpage guides them through subsequent steps to choose delivery addresses and payment methods. Subscribers enjoy a 5% discount on individual products. However, opting for subscriptions to 5 or more products unlocks a more substantial 15% discount.

Amazon Subscribe & Save Orders

Amazon’s Subscribe & Save program involves two types of orders:

Sign-up Orders: Sign-up orders represent a customer’s initial subscription to a product within the Subscribe & Save program. To showcase your product in the Subscribe & Save program, ensure it has the “Featured offer.” For detailed information, refer to the guidelines on “How the Featured Offer Works.”

Replenishment Orders: Replenishment orders are automatically generated based on the frequency chosen by the customer. Customers subscribing to Subscribe & Save can schedule deliveries at intervals ranging from one to six months.

Viewing Your Subscribe & Save Orders

    • Access your Subscribe & Save orders through the “Transaction View” on the Payments report page.

By understanding and managing these order types, sellers can effectively participate in and optimize their performance within the Subscribe & Save program.

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Seller Performance Metrics for Amazon Subscribe & Save

Ongoing seller performance reviews on Amazon are crucial for maintaining a positive customer experience. Performance evaluation encompasses various factors, including inventory management, customer feedback, and Subscribe & Save order cancellations. Poor performance metrics can impact a seller’s eligibility to participate in the Subscribe & Save program.

To monitor and assess your performance, you can access the Subscribe & Save Manage Products dashboard, where you can review the following metrics across weekly, monthly, quarterly, and yearly time frames:

    1. Shipped Units: The number of units shipped for subscription orders during a specified time period.
    2. Shipped Revenue: The total revenue generated from shipped subscription orders over a given time period.
    3. Subscriptions Count: The total count of active subscriptions at the end of a specified time period.
    4. Not Delivered Due to OOS (Out of Stock): The percentage of units that were not delivered because the ASINs were out of stock.
    5. Average Revenue per Customer: A comparison of the average revenue generated from subscribers versus non-subscribers.
    6. Planned Revenue: The sum of projected revenue from orders expected to ship for active subscriptions in the upcoming 30, 60, or 90 days.
    7. Planned Units: The total number of units for orders expected to ship for active subscriptions in the upcoming 30, 60, or 90 days.

Note:

    • Planned revenue and planned units are estimated projections, not guarantees of future sales.
    • Additionally, performance metrics can be obtained at the ASIN level by using the search option on the dashboard, with the ability to search up to 20 ASINs at a time.

For effective management of your Subscribe & Save offers and additional tips, refer to the “Add or remove Subscribe & Save products” section. This comprehensive performance dashboard aids sellers in optimizing their Subscribe & Save strategy and maintaining a high level of service for Amazon customers.

 

Key Takeaway:

Performance Monitoring: Utilize the Subscribe & Save Performance Results Report to monitor key metrics such as units shipped, out-of-stock rate, sale price, and discount rate. By closely monitoring performance metrics, sellers can optimize their Subscribe & Save strategy and ensure a positive customer experience, ultimately leading to increased sales and customer loyalty.


How do Sellers Profit from the Subscribe & Save Program?

Consistent Sales Flow:

    • Gain repetitive customers, contributing up to 20% of annual revenue.
    • Lower user acquisition costs and establish a reliable business model.

Customer Loyalty Boost:

    • Witness a sales increase of 10 to 30%, fostering customer loyalty.
    • Build a loyal customer base with minimal investment.

Active Customer Engagement:

    • Subscribers are more likely to explore and buy additional products.
    • Create opportunities for upselling and expanding product offerings.

Enhanced Visibility:

    • Benefit from increased visibility and market reach with custom search filters.

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What are the Eligibility Criteria for Subscribe & Save Program?

To participate in the Subscribe & Save program, it is essential to maintain a good-standing FBA (Fulfillment by Amazon) account. Starting from December 18, 2019, the enrollment of new products has been restricted to brand owners exclusively. Products enrolled before this date remain eligible for Subscribe & Save. For detailed guidance on brand registration, please refer to the Amazon Brand Registry.

Should you not find the option to enable Subscribe & Save in your settings, and you believe your products meet the eligibility criteria, it is recommended to reach out to Selling Partner Support for assistance.

Amazon employs the following criteria to assess product eligibility

  1. Fulfillment history and in-stock rate
  2. Sales performance
  3. Product category
  4. Average selling price

These factors collectively contribute to determining whether a product qualifies for inclusion in the Subscribe & Save program.

Which Product Categories Qualify for the Subscribe and Save Program?

Product Category Discounts
Product Category Seller-Funded Discount for 1-4 Subscriptions (per delivery) Seller-Funded Discount for 5 or More Subscriptions (per delivery)
Beauty 5% 15%
Grocery 5% 15%
Health & Baby Care 5% 15%
Automotive Parts & Tools 5% 10%
Electronics 5% 10%
Home Tools & Home Improvement 5% 10%
Industrial Supplies 5% 10%
Kitchen 5% 10%
Lawn & Garden 5% 10%
Musical Instruments 5% 10%
Office Supplies 5% 10%
Outdoors 5% 10%
Pet Supplies 5% 10%
Sports 5% 10%
Toys 5% 10%

Note: The discount rates listed above do not apply to Amazon Business customers, who receive a fixed 5% discount on each product regardless of the category or number of subscriptions.

Additionally, seller coupons and promotional discounts are added to Subscribe and Save discounts. For instance, during a Lightning Deal on a product in Subscribe & Save, the program discount must be provided in addition to the deal price.

How Can I Verify My Eligibility for Amazon Subscribe & Save Program?

Sellers can check eligibility through the Subscribe & Save Manage Products page. If the option is not visible, sellers with eligible items can contact Selling Partner Support.

Steps to verify eligibility

Step 1: Log in to your Seller Central account.

Step 2: On the Seller Central dashboard, locate and click on the “Settings” button in the top-right corner.

Step 3: From the dropdown menu, select “Fulfillment by Amazon.”

Step 4: Once you’ve chosen Fulfillment by Amazon, a list of menu options will appear. Click on “Subscription Settings.”

Step 5: In the Subscription Settings section, you’ll find information about your current status for Subscribe & Save. It will indicate whether you are eligible for participation in the program or not.

By following these steps, you can quickly check your eligibility for Amazons Subscribe & Save program using Seller Central.

Key Takeaway:

Eligibility and Enrollment: Check eligibility criteria for the Subscribe & Save program and follow the enrollment process effectively. Maintaining eligibility requires a good-standing FBA account, and products enrolled before December 18, 2019, remain eligible. Sellers should leverage tools like the Subscribe & Save Inventory File Template for seamless enrollment of products into the program.


How Base Discounts and Tiered Status Work in Amazon Subscribe & Save?

The base discount and funding structure for Amazon Subscribe & Save, applicable to subscriptions created after November 5, 2019, aim to encourage customer loyalty through tiered savings. Here’s how it works:

Seller Funded at 0%:

  • For four subscriptions on the same delivery date, customers receive no discount.
  • When customers subscribe to five or more items in a single delivery, they unlock a 5% discount, funded by Amazon for a limited time.

Seller Funded at 5%:

  • For four subscriptions on the same delivery date, customers enjoy a 5% discount.
  • When customers subscribe to five or more items in a single delivery, they receive a 5% discount (funded by the seller), plus an additional 5% discount (funded by Amazon for a limited time), resulting in total savings of 10%.

Seller Funded at 10%:

  • With four subscriptions on the same delivery date, customers get a 10% discount.
  • Subscribing to five or more items in a single delivery earns customers a 10% discount (funded by the seller), along with an additional 5% discount (funded by Amazon for a limited time), providing a total savings of 15%.

Important Notes:

  • The tiered status, unlocked by subscribing to five or more items, enhances the discount for customers, making it an attractive option.
  • The additional 5% discount funded by Amazon is a limited-time incentive, aiming to reward and promote increased subscription frequency.
  • Sellers can choose from three base funding options: 0%, 5%, or 10%, impacting the initial discount before tiered savings.
  • This structure is designed to incentivize both sellers and customers, fostering a mutually beneficial Subscribe & Save experience.

By understanding and utilizing this tiered discount system, sellers can strategize their Subscribe & Save offerings to maximize customer engagement and satisfaction.

Key Takeaway:

Tiered Discount Structure: Understand the tiered discount structure of the Amazon Subscribe & Save program, where customers can unlock additional savings by subscribing to five or more items in a single delivery. Sellers can choose between different funding options (0%, 5%, or 10%) to offer initial discounts, which can further attract and retain customers.


What’s the Process to Join the Subscribe & Save Program?

  1. Log in to your Seller Central account.
  2. Navigate to the “Settings” button on the top-right corner of the dashboard and select “Fulfillment By Amazon” from the dropdown menu.
  3. Within the Fulfillment By Amazon section, click on “Subscription Settings.”
  4. Locate the “Edit” button on the right side to manage subscription settings.
  5. On the Edit page, choose the “Enable” radio button to activate the Subscribe & Save option.
  6. Click the “Update” button to save the changes.
  7. A pop-up with the Subscribe and Save program’s terms & conditions will appear. Read and understand the policies, then click on the “Agree” button.
  8. After agreeing, you are now enrolled in Amazon’s Subscribe & Save program and can start selling through it.

How to Add Items to the Save & Subscribe Program?

Adding items to the Save & Subscribe program on Amazon involves several steps. Follow this guide for a seamless enrollment process:

Step 1: Use the Subscribe & Save Inventory File Template

  1. Log in to your Seller Central account.
  2. Navigate to Help > FBA (Fulfillment by Amazon) > FBA features & fees > FBA Subscribe & Save > Add or remove subscribe & save products.
  3. Click on “Subscribe & Save Inventory File Template.”

Step 2: Excel Sheet Overview

  1. Download the Excel sheet, which consists of three tabs: Instructions, Examples, and Template.
  2. Review the clear instructions on the Instructions tab for uploading product data.
  3. Ensure proper formatting by following steps like highlighting cells, right-clicking, and choosing “Format Cells” under the Number category.
  4. Review examples on the Examples tab for better understanding.
  5. On the Template tab, enter product MSKUs in the SKU column and specify actions (Enable/Disable) in the Action column.

Step 3: Save and Upload the Template

  1. Save the file, selecting Text (*.txt) from the drop-down list.
  2. Click the Template tab, fill in SKU and Action columns.
  3. Upload the template on Seller Central under Add or Remove Subscribe & Save Products > File Upload.

Step 4: Summary Page

  1. After upload, a summary page displays successfully enrolled products and any upload errors.
  2. Errors are listed with solutions; for persistent issues, email support at http://fba-sns-feedback@amazon.com.

Step 5: Ensure Proper Upload

  1. Dismiss all errors.
  2. Click “Update Eligible SKUs” to complete the upload process.

Following these steps ensures a smooth addition of products to Amazon’s Subscribe & Save program.

How Do I Monitor Results from Subscribe & Save?

After enrolling your products in the Subscribe & Save program on Amazon, effectively tracking the results is crucial for optimizing inventory, pricing, and complying with program terms & conditions. Amazon provides two insightful reports to aid in this process:

Subscribe & Save (SnS) Performance Results Report:

This report, available under Reports > Fulfillment > Subscribe & Save Performance in Seller Central, provides a snapshot of your trailing 4-week results.

Key Metrics in the Report:

  • Snapshot Date: 2019-02-14T08:00:00+00:00 (Report date)
  • SKU: AB-5676339 (Your product’s unique identifier)
  • FNSKU: Z00000C5TY (Amazon’s unique identifier for stored items)
  • ASIN: D003FYZ3HO (Amazon’s unique product identifier)
  • Product Name: Royal Footwears
  • Country: DE (Country code for offer availability)
  • Weeks 1-8: Detailed breakdown of each week’s performance metrics (Units Shipped, Out-of-Stock Rate, Sale Price, Discount Rate)

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FAQs In relation to Amazon Subscribe & Save Program

What is Amazon Subscribe & Save?

It’s a program for recurring deliveries, offering base discounts and tiered savings for customers who subscribe to multiple items.

How do I enroll my products in Subscribe & Save?

Log in to Seller Central, navigate to “Fulfillment by Amazon,” and select “Subscription Settings” to enable the program.

What benefits does Subscribe & Save offer for sellers?

It provides a consistent sales flow, boosts customer loyalty, encourages engagement, enhances visibility, and offers potential revenue growth.

What are the eligibility criteria for sellers to join Subscribe & Save?

Sellers need a good-standing FBA account, and products enrolled before December 18, 2019, remain eligible. Brand owners have exclusive enrollment rights.

How can sellers monitor their performance in the Subscribe & Save program?

They can access the Subscribe & Save Performance Results Report in Seller Central, which provides insights into key performance metrics like units shipped and out-of-stock rate.


Conclusion

The Amazon Subscribe & Save Program emerges as a mutually beneficial platform for customers and sellers. Customers enjoy the convenience of regular, discounted deliveries, fostering loyalty. For sellers, leveraging the program necessitates maintaining eligibility, understanding tiered discounts, and utilizing the enrollment process effectively. With a diverse range of eligible product categories and the addition of seller coupons, the program provides a dynamic marketplace. Monitoring performance metrics is crucial for sellers to ensure a positive customer experience. Overall, strategic participation in the Subscribe & Save Program can significantly enhance a seller’s visibility, customer engagement, and long-term success on the Amazon platform.

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