Amazon Subscribe & Save Program: Complete Guide for Sellers 2024

8/7/2024

Maintaining and strengthening customer relationships is a crucial goal for businesses in general and e-commerce sellers in particular. The Amazon Subscribe & Save program has emerged as a powerful tool that helps sellers not only increase revenue but also build customer loyalty. In this comprehensive guide, we will help you understand how the program works, the benefits it offers, and detailed steps to optimize your sales strategy on Amazon in 2024.

Amazon Subscribe & Save is a program for shoppers that helps them save time and money by automatically delivering household essentials at discounted prices. By committing to regularly purchasing essential items, users can receive discounts of up to 15% off the regular price.

To use the Amazon Subscribe & Save program, simply select the products you want to subscribe to and choose your desired delivery frequency. Shoppers can opt for weekly, monthly, or other suitable intervals. Once the subscription is set up, they don't need to worry about running out of household essentials like toilet paper, laundry detergent, or cleaning supplies.

This program is available to all Amazon customers, with additional benefits for Amazon Prime members such as free shipping and access to exclusive deals. They can also cancel or adjust their subscriptions at any time, making it easy to manage household needs.

The program includes a wide range of products, from household essentials and pet food to baby care items and more. Customers can browse the Amazon Subscribe & Save page to find items that fit their needs, enjoying both convenience and cost savings.

Amazon Subscribe & Save offers numerous benefits to users. Here are some of the top advantages of using Amazon Subscribe & Save:

Discounts

One of the key benefits of using Amazon Subscribe & Save is the discounts it provides on eligible products. Users can save up to 15% on each purchase when they subscribe to five or more products in one delivery. This discount is automatically applied to the order, and customers don’t need to do anything extra to receive it.

Free Shipping Another advantage of using Amazon Subscribe & Save is the free shipping on eligible products. This means that buyers do not have to pay any shipping fees when they subscribe to an item.

Convenience Shoppers can set up their subscriptions to be delivered on a schedule that suits them. They can choose the frequency of receiving products and even skip deliveries or cancel subscriptions at any time.

Easy Management Managing subscriptions on Amazon Subscribe & Save is also very easy. Users can access their subscriptions from their account dashboard, where they can view all active subscriptions, upcoming deliveries, and previous orders. They can also modify their subscriptions, such as adding or removing products, changing delivery schedules, or canceling subscriptions.

Sellers and businesses can check the SKUs enrolled in the Amazon Subscribe & Save program at any time through Seller Central. Go to the Inventory Management section, click on the SKU, and select Subscribe & Save from the left side of the SKU page. Here are some of the most useful S&S tools:

Performance Reports In addition to increasing visibility, providing steady revenue, and boosting customer loyalty, Subscribe & Save offers detailed insights. For example, by using the Performance Report, sellers can see if there have been any changes in sales since an item was enrolled and the Subscribe & Save discount was launched. You can also see the number of items shipped, out-of-stock rates, average selling prices, and average discount rates.

Forecast Reports The forecast report tool allows you to view the number of subscribers, order frequency, and projected revenue for each item. It is updated weekly and provides an 8-week overview. This helps you plan inventory, adjust pricing, and tweak product listings to meet demand and maximize profits.

New Tracking Feature In addition to the forecast reports, Amazon offers an extra perk with the new tracking feature. Amazon allows you to track the status of any Subscribe & Save shipment! With the new S&S tracking feature, you can monitor the performance of your product listings and how to optimize them, ensuring that you consistently meet customer demand and maintain revenue stability.

Sellers can only participate in the Amazon Subscribe & Save program if they are registered for Fulfillment by Amazon (FBA). After enrolling some of their products in FBA, shipping them to Amazon, and waiting for them to be processed at the fulfillment center, sellers can sign up for Subscribe & Save deliveries. Just follow these steps to make your products available for customer subscriptions in minutes:

Log in to your Seller Central account.
Select an item and click the "Edit" button on the product detail page.
Scroll down to the "Offer" section and check the "Subscribe & Save" box.
Choose the percentage discount you want to offer to subscribers.
Set up the delivery frequency options for the product.
Save the changes.

Eligibility Requirements

Not all products or sellers are eligible for the Amazon Subscribe & Save program. Sellers can upload up to 300 SKUs at a time using the Subscribe & Save inventory file template if they meet the following criteria:

FBA History: FBA is open to all sellers, so nearly anyone with a seller account and items stored at a fulfillment center can join the Amazon Subscribe & Save program. However, there are some informal requirements: an FBA sales history of over 3 months, good sales performance, and a feedback rating of 4.7 or higher.
Performance Rating: Sellers need to maintain a performance rating within the range of 1 to 5.
Consumer Goods Only: The program is only applicable to fast-moving consumer goods, such as food, beverages, health and personal care products. Amazon may consider pricing, sales history, availability, or other factors to assess product eligibility.
Stock Requirements: Amazon requires items to have a stock availability rate of at least 85%. This means you should have stock available for at least 26 out of the past 30 days.

Sellers who meet these criteria can leverage the Subscribe & Save program to boost revenue and build customer loyalty.

While Amazon handles order fulfillment, this does not mean that Subscribe & Save sellers are exempt from responsibilities. Once your products are enrolled, you could lose eligibility and be suspended from the program at any time. Here are some scenarios where your products might be reviewed or suspended:

Inventory Violations: If you fail to fulfill Subscribe & Save orders on time, your products may be reviewed. Frequent failures to meet order deadlines could lead to suspension.
Pricing Violations: Amazon expects stable pricing. Significant price fluctuations can lead to suspension.
Backdating Violations: Since Subscribe & Save orders can take weeks to complete, you might receive violation notices after the order has been placed.
Creating New SKUs on the Same Listing: You must email Amazon's FNA SNS support team after naming a new SKU and request them to transfer your subscription to the new product.
Creating Prohibited Offers: Coupons and Flash Sales are the only allowable types of Subscribe & Save discounts. Other promotions and offers may be considered pricing violations.
Post-Cancellation Violations: Once enrolled in the Amazon Subscribe & Save program, you are locked in for 6 months. Even if you leave the program, you must fulfill all received orders on Amazon for an additional 6 months or risk negative metrics.
Blocked Products: Amazon can block Subscribe & Save products at any time. The FNA SNS support team might restore them, but there is no guarantee.

There is no denying that Amazon's Subscribe & Save program offers numerous benefits. However, it may not be suitable for every Amazon business. Here are some factors to consider before deciding to join the program:

Product Eligibility: As mentioned earlier, only consumable goods qualify for the program. If your product does not fall into this category, the program may not be suitable for your business.
Sales History: Amazon assesses a product's eligibility for the program based on its sales history. If your SKU has low sales volume, consider waiting and building up your sales before applying.
Competitive Pricing: The program only makes sense if you can offer competitive prices. If your Subscribe & Save discounts are not substantial enough, buyers may not have a reason to commit to a subscription. If a one-time purchase from a competitor is slightly cheaper, they might choose that instead.
Stable Supply: Since customers subscribe to products, sellers must ensure they can consistently supply them. If you cannot do this, customers may cancel their subscriptions, leading to reduced revenue.

Conclusion

Amazon's Subscribe & Save program presents a great opportunity to boost sales and revenue while building a loyal customer base. With the Subscribe & Save forecast reports and the new tracking feature, businesses have all the essential information at their fingertips. However, not every business has the right products, capabilities, or pricing software for it. Carefully consider these factors before participating in Amazon Subscribe & Save.

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