How to Set Up Amazon Subscribe & Save Programme for Sellers

Elise Jackson

Post details

  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon Operations
  • DATE: 27/04/2023

Want to drive repeat customers with regular deliveries and discounts? Then it’s crucial as an Amazon seller to utilise all the tools at your disposal – like the Subscribe and Save Programme.

Utilising the Subscribe & Save feature on Amazon can increase repeat buyers, sales and customer loyalty.

For example, If you’re selling products that have the potential for a great repurchase rate, such as household items, beauty and everyday essentials, setting up subscribe and save is a really useful tool that allows the buyer to purchase on a subscription at a discounted price. This helps you maintain repeat buyers and a loyal customer relationship!

This article details what you need to know about the Subscribe & Save programme and how to use it successfully.

How does Subscribe & Save work for the customer?

First, a customer will select the subscribe & save option for the products they want to receive regularly.

Then they choose the frequency of the delivery, this could be monthly, every three months etc. After this, Amazon automatically ships the product to the customers on their selected schedule.

There are two types of Subscribe & Save orders:

  • Initial sign-up order: This is where the customer selects to subscribe in the Buy Box while choosing the frequency of delivery.
  • Replenishment order: Automatically placed based on how often the customer has chosen in the initial sign-up order.

Subscribe & Save is beneficial for the customer because it saves time since the manual work of ordering has been taken care of, and customers receive a discount on the product which is usually around 5%.

 

Benefits of Subscribe & Save for the Seller

1. Gain consistent repeat sales: the seamlessness of this feature for the customer means they don’t have to manually set up orders each time, their products show up at their door whenever they have set the time. So, as a seller then gain repeat customers.

2. Encourages customer loyalty: By default, when you get repeat sales you are gaining customer loyalty. Sellers can see up to a 30% increase in repeat customers using the subscribe & save programme.

3. Build brand awareness: Your brand becomes more recognisable if you enrol your products to subscribe & save as well as trust.

 

Potential downsides of Subscribe & Save to keep in mind

There are a few drawbacks to consider before enrolling:

1. This could lead to lower profit margins when your products are being offered at a discount. We recommend calculating whether offering this feature benefits your profits.

2. You could run into potential inventory issues if your product because your products becomes unexpectedly popular. The key here is to create an inventory management guide that covers all bases.

 

Before you enrol as a seller – here are the eligibility criteria for Subscribe & Save

You might have guessed it – not all businesses and products are eligible for Subscribe & Save.

Your business must:

  • Have a Fulfillment by Amazon account in good standing
  • Possess a seller approval rating of over 4.7
  • Been selling in FBA for over 3 months

 

Additionally, Amazon uses the following criteria to determine product eligibility:

  • Fulfilment history and in-stock rate
  • Sales performance
  • Product category
  • Average selling price

It’s easy to find out if you are eligible. Simply go to the Seller Central dashboard > click settings on the right-hand corner > choose Fulfilment by Amazon from the dropdown > click subscription settings from the menu > you should see your status of eligibility of Subscribe and Save.

How to enroll in Subscribe & Save

  • To set up Subscribe & Save for your products, simply log in to your Amazon Seller Central account and navigate to the “Manage All Inventory” section:

Amazon Seller Central

 

  • From there, click through on the product you want to offer the subscription option for. Under the “Offering” tab, select “Subscribe & Save” and set the discount percentage you want to offer

 

  • To set up Subscribe & Save for your products, simply login to your Amazon Seller Central account and navigate to the “Manage Products” section:

Subscribe & Save

 

  • From there, click through on the product you want to offer the subscription option for:

 

  • Under the “Actions” tab, select “Choose seller-funded discount” and set the discount percentage you want to offer:

 

 

How to track Subscribe & Save Results

There are two useful reports to help you track the results of your subscribe & save programme that will help you execute your inventory and pricing better:

1.Subscribe & Save (SnS) performance results report

Use performance report to make data driven decisions for bettering your inventory and pricing strategies. This report also makes sure you maintain compliance. The performance report lets you see your 4-week results for:

  • Summary of products shipped
  • Percentage of items missed because of stock unavailability
  • Average sale price (post-discount)
  • Average discount for every SKU.

2. Subscribe & Save (SnS) forecasting report

This report is much similar to the performance report but instead of 4-weeks it gives you an 8-week view of the programme results. This helps you deliver a reliable customer experience as you can forecast the SnS sales and maintain pricing and inventory performance.

 

Best practices for Subscribe & Save success

Simply setting up Subscribe & Save is great, but to boost the outcome positively for this feature you need to deploy some smart tactics.

 

1. Set up discounts

Amazon allows Sellers to choose between three base discounts: 0%, 5% and 10%. According to an internal Amazon study, on average, products with the maximum program discount can drive up to a 1.8 times increase in conversion. For a limited time, Amazon will fund an additional 5% discount for tiered shipments, regardless of which base discount you choose.

We recommend these discounts to get started:

Discounts for repeat buyers: Consider offering a percentage discount for customers who subscribe to a regular delivery schedule. This can incentivize customers to commit to purchasing your product regularly and can also help you forecast sales.

Discounts for multiple quantities: Another option is to offer a discount for customers who purchase multiple quantities of your product in a single Subscribe and Save order. This can encourage customers to stock up on your product and increase your sales volume.

Discounts for first-time buyers: Finally, consider offering a special discount for first-time Subscribe and Save customers. This can attract new customers to your product and encourage them to try it out regularly.

 

2. Create your Delivery Schedule

Next, you’ll need to set up your delivery schedule. This involves selecting the frequency of deliveries and the number of items that will be shipped with each order. You can also customize the delivery schedule for each product to suit your needs.

  • Customers can select the product, quantity and frequency of delivery on the product detail page

 

 

3. Promote your Subscribe & Save feature

Once your product is eligible, you can start promoting the Subscribe & Save option to your customers. This can be done through email campaigns, social media posts, and by including information about the programme on your product listing.

By making it easy for customers to sign up, you can increase the number of subscribers and boost your repeat business.

 

 

Our Thoughts

If you can offer Subscribe & Save to your customers, do it! Setting up discounts with Subscribe and Save can be a valuable strategy for increasing customer loyalty and sales.

By offering a variety of discounts, you can appeal to a range of customers and encourage them to purchase your product regularly.

Need a little help setting up Subscribe & Save? We’ve got you, send us a message or book a call and let us know what you need help with.

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