Amazon Subscribe & Save Program offers a unique way to engage customers and drive consistent sales. This program allows customers to subscribe to regularly receive your products and enjoy the convenience of automatic deliveries. In this article, we will walk you through the depths of this program and explore how it can potentially benefit your business.
A quick view of this article:
- What is the Amazon Subscribe & Save Program?
- Benefits of the Subscribe & Save Program
- Amazon Subscribe & Save Eligibility Requirements
- How the Subscribe & Save Program Works
- How to Update the Discount Percentage
- Subscribe and Save Performance Dashboard
- Final Thoughts
What is the Amazon Subscribe & Save Program?
The Amazon Subscribe & Save program is a service offered by Amazon that allows customers to subscribe to receive regularly scheduled deliveries of eligible products. The program is designed to make it convenient for customers to receive essential items on a regular basis without the need to manually place orders each time. Customers can choose the frequency of deliveries, typically ranging from every two weeks to every six months. This allows them to receive products at intervals that suit their usage patterns.
Subscribers often receive a discount on the regular price of the product. Once subscribed, customers don’t need to worry about placing orders each time they need a particular product. This not only the purchasing process for customers but also creates a reliable and consistent stream of sales for your business.
Benefits of the Subscribe & Save Program
The Subscribe & Save Program offered by Amazon provides lots of benefits for both customers and sellers, making it a compelling and advantageous platform. Here are some key advantages:
- Getting Consistent Sales: Amazon’s Subscribe & Save program fosters repeat customers, providing sellers with a reliable and steady stream of purchases. The subscription model encourages customers to make regular, recurring purchases, establishing a predictable pattern of sales for sellers.
- Encouraging Additional Purchases: Within the Amazon Subscribe & Save program, customers are motivated to expand their shopping cart. By offering discounts for purchasing a specific quantity, such as four or more items, customers are enticed to buy more from your store. Furthermore, acquiring five products often qualifies customers for an additional discount provided by Amazon.
- Enhanced Visibility and Reach: Participating in the Subscribe & Save program can significantly boost the visibility of your products. Items featured in the program receive priority placement, and their visibility is enhanced through custom search filter preferences. This heightened exposure contributes to increased traffic and potential sales for your store.
- Building Customer Loyalty: The Subscribe & Save program not only attracts customers but also fosters loyalty. By providing discounts on regularly scheduled deliveries of everyday essential items, the program caters to the wants, needs, and lifestyles of customers. This creates a positive and enduring relationship between customers and sellers, increasing the likelihood of long-term engagement and repeat business.
Amazon Subscribe & Save Eligibility Requirements
To qualify for participation in the Amazon Subscribe & Save program, sellers are required to meet a set of specific eligibility criteria. These requirements are carefully established to ensure the smooth operation of the program and to guarantee a positive experience for both sellers and subscribers. Here is a detailed breakdown of the eligibility criteria:
- Fulfillment by Amazon (FBA) Requirement: Sellers must have their inventory stored in an FBA (Fulfillment by Amazon) warehouse. Amazon will be responsible for the storage, packing, and shipping of the products, contributing to the seamless fulfillment of Subscribe & Save orders.
- Fulfillment Performance Standards: Sellers have to demonstrate a reliable fulfillment history, maintaining an 85% in-stock rate. This ensures subscribers can consistently receive their scheduled deliveries without disruptions caused by inventory shortages.
- Duration of FBA Participation: Sellers must have been participants in the FBA program for a minimum of three months. You have to ensure that you have sufficient experience with Amazon’s fulfillment processes.
- Professional Seller Account: Sellers must maintain a professional seller account on Amazon. This is important to establish standards in terms of customer service, product quality, and overall business conduct.
- Amazon Brand Registry Membership: Participation in the Amazon Brand Registry is a prerequisite for sellers looking to join the Subscribe & Save program. This registry helps protect intellectual property rights and establishes brand authenticity, contributing to a trustworthy and secure shopping environment for subscribers.
- High Seller Feedback Rating: While not a strict requirement, it is highly recommended for sellers to maintain a seller feedback rating of 4.7 or higher. A positive feedback rating reflects a high level of customer satisfaction and enhances the overall reputation of the seller on the platform.
How the Subscribe & Save Program Works
When you fulfill all the requirements, Amazon will automatically enroll your eligible products at the 0% base discount rate. Five or more subscriptions in a delivery unlocks tiered status, meaning additional savings for customers. Here is how the tiers work:
Seller funded at 0%: Four subscriptions on the same delivery date earn customers no discount. Five or more subscriptions on the same delivery date earn a 5% discount (funded by Amazon for a limited time).
Seller funded at 5%: Four subscriptions on the same delivery date earn customers a 5% discount. Five or more subscriptions on the same delivery date earn a 5% discount (funded by you), plus an additional 5% discount (funded by Amazon for a limited time)—unlocking customer savings of 10%.
Seller funded at 10%: Four subscriptions on the same delivery date earn customers a 10% discount. Five or more subscriptions on the same delivery date earn a 10% discount (funded by you), plus an additional 5% discount (funded by Amazon for a limited time)—unlocking customer savings of 15%.
How to Update the Discount Percentage
Updating the discount percentage for your products in the Amazon Subscribe & Save Program is a straightforward process. Here is a step-by-step guide on how to adjust the discount percentage from your Subscribe & Save dashboard:
Step 1: Log in to your Seller Central account, head to Growth, and select Explore Programs.
Step 2: Within the Increase Conversion section, locate and choose Subscribe & Save. Click on Learn more to delve into the program details.
Step 3: Now, click on Change default enrollment discount to modify the discount percentage.
Step 4: Choose your preferred discount amount from the options provided. After selecting the discount percentage, confirm the changes to apply the new discount to your Subscribe & Save eligible products.
This is an easy process to update the discount. But we will suggest you go for a 10% discount because on average, products at a 10% discount can drive up to a 1.8X increase in conversion.
You can also Remove all products or Opt out of automatic enrollment from your dashboard.
Subscribe and Save Performance Dashboard
Within the Performance Dashboard, you can monitor the performance of individual ASINs enrolled in the program. This offers a comprehensive view of key performance metrics, including subscription renewal rates, order frequency, and customer engagement. One notable feature is the ability to analyze data on a granular level, allowing sellers to track performance weekly, monthly, quarterly, or yearly. The continuous monitoring of the Performance Dashboard enables sellers to adapt and improve their approach over time, ensuring dynamic and effective participation in the Subscribe & Save Program.
Final Thoughts
Undoubtedly, Subscribe & Save offers an excellent way to secure consistent sales and simultaneously boost brand awareness and customer loyalty. If you meet the eligibility criteria, you should definitely enroll products for this program. Experiment with various pricing discounts and assess the impact on your results.
If you have any queries, please let us know through the comment box or email us at info@ecomclips.com. We understand that every situation is different, so we offer a personalized approach to our service.
To know more about Amazon, please check out our other blog. Also, you can check our YouTube videos related to Amazon.
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