Driving Sales With Amazon Subscribe and Save: Strategies for Sellers
The Amazon Subscribe and Save program offers an excellent opportunity for sellers to boost revenue, improve inventory planning, and foster a loyal customer base. Through the program, customers receive recurring deliveries of their favorite products while enjoying discounts and free shipping. But how can you, as a seller, leverage this program for your benefit? In this guide, we’ll walk you through the best strategies.
What Is Amazon Subscribe and Save?
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Before diving into the best strategies for sellers, it’s important to understand what the Amazon Subscribe and Save program is and how it works.
Amazon Subscribe and Save is a popular program that provides customers with a convenient subscription service for frequently used products at discounted prices. Rather than making one-time purchases, customers can opt to receive their favorite products at regular intervals, enjoying cost savings in the process. They have the flexibility to customize their delivery date and schedule, choosing from monthly to six-month intervals, and can easily skip or cancel deliveries as needed.
How Does Subscribe and Save Work?
The process of subscribing to products is simple and user-friendly. Customers can browse through millions of items available in the Subscribe and Save store and select the ones they wish to subscribe to. Unlike the typical “Add to Cart” button on Amazon, customers can set their preferred delivery frequencies and simply click on the “Subscribe Now” option. By doing this, they are directed to the subsequent steps where they can select their preferred method of payment and delivery address. As mentioned earlier, subscribers receive a discount ranging from 5% to 15%, depending on the quantity of products they subscribe to.
There are two types of Subscribe & Save orders:
1) Sign-Up Orders: When a customer completes the subscription process, it automatically becomes a sign-up order.
2) Replenishment Orders: Based on the customer-specified delivery frequency, these orders are generated automatically in the subsequent months.
How Does the Program Benefit Sellers?
Amazon Subscribe and Save offers several benefits for sellers on the platform, including:
The Subscribe and Save program provides a steady stream of recurring revenue for sellers. Since customers commit to regular purchases, sellers can predict future sales, enabling better financial planning.
Enhanced Customer Loyalty
The convenience and savings offered by this program foster customer loyalty. Once customers subscribe to a product, they are less likely to switch to a different brand.
Improved Inventory Management
Knowing your sales in advance helps streamline inventory management. Sellers can plan their inventory based on the subscriptions, reducing the likelihood of overstocking or running out of stock.
Increased Sales Volume
With the Subscribe and Save program, you’re more likely to increase the sales volume of your product. This increased sales volume can improve your ranking on Amazon, leading to higher visibility and more sales opportunities.
What Are the Eligibility Requirements for the Program?
To be eligible for the Subscribe and Save program and enjoy its benefits, sellers should:
- Maintain a track record of fulfilling orders with an 85% in-stock rate.
- Ensure they have a professional seller account in good standing.
- Register their brands on Amazon’s Brand Registry.
- Ensure their inventory is stored in an FBA warehouse; Subscribe & Save is not available for FBM inventory.
- Aim to maintain a seller feedback rating of 4.7 or higher.
- Be an FBA seller for at least 3 months.
What Products Can You Sell on Amazon Subscribe and Save?
The Subscribe & Save program allows customers to subscribe to recurring deliveries of products from specific eligible departments. These departments include:
- Health & Baby Care
- Automotive Parts & Tools
- Tools & Home Improvement
- Industrial Supplies
- Lawn & Garden
- Musical Instruments
- Office Supplies
- Pet Supplies
Note: if your products belong to a category not listed above, they are not eligible for the Subscribe and Save program.
How To Check if Your Products Are Eligible for Subscribe and Save
As of December 2019, products that meet the eligibility criteria are automatically enrolled in the Subscribe & Save program. If you want to view your eligible products, simply navigate to the “Manage Products” section on the Subscribe & Save page. For any new products that were not automatically enrolled, you can enroll them in the program by sending an email to firstname.lastname@example.org.
Best Practices for Sellers to Maximise Success
To ensure a consistent and positive customer experience with your brand on the Subscribe and Save program, it is essential to follow these best practices:
Monitor Active Subscriptions
To ensure you stay in control of your Subscribe & Save products, it is recommended to regularly monitor the subscriptions of all your enrolled items. Amazon offers a user-friendly tracking feature specifically designed for this purpose. You can access this feature through the “Manage Products” section on the Subscribe & Save page.
Manage Your Inventory Carefully
One of the keys to success in the Subscribe & Save program is maintaining sufficient inventory levels. Make sure your Subscribe & Save products are consistently in stock to meet the demands of subscribers. Running out of stock can lead to customer dissatisfaction and may result in the removal of your products from the program or the cancellation of subscriptions.
Maintain Steady Pricing
Consistency in pricing is vital for a positive customer experience. Avoid frequent price fluctuations for your Subscribe & Save products, as this can create uncertainty and dissatisfaction among subscribers
Use Subscribe and Save Reports for Performance Management
Amazon offers valuable Subscribe & Save reports to help sellers maintain optimal performance levels. The Subscribe & Save Forecasting report utilizes historical data to project future performance and assists in planning inventory requirements. Additionally, this report can be utilized to review and monitor sales, track discounts, assess out-of-stock order cancellation rates, and review information related to past sales price increases.
How to Set Up Promotions for Subscribe and Save Products
To set up promotions for Subscribe and Save products, follow the steps below:
- Log in to your Amazon Seller Central account and navigate to the Manage Products section.
- In this section, you will find a list of products that are already enrolled in the Subscribe and Save program. To set up a promotion for a specific product, simply locate the ASIN of the product you wish to promote.
- Enter the desired discount amount or percentage for the selected product.
- Review all the information you entered to ensure it’s accurate. Once you are satisfied, submit the promotion for review.
Note: If you decide not to include your products in the Subscribe and Save program, you have the option to opt out of automatic enrollment.
The Amazon Subscribe and Save program presents a golden opportunity for sellers to enhance their revenue while fostering customer loyalty. By following the best strategies mentioned in this blog, you can make the most out of this program. Remember, the ultimate goal is to deliver value to your customers while growing your business.
Looking for expert assistance in managing your Amazon seller account? Enso Brands offers a comprehensive range of one-stop Amazon services tailored to optimize your performance and maximize your potential on the platform. Contact us today and discover how we can help your business thrive on Amazon!
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