Amazon’s Subscribe & Save program is a fantastic tool that provides an efficient way to increase sales for Amazon sellers while delivering consistent savings to your customers.
Here’s what you need to know to implement it successfully:
What is Subscribe & Save?
Amazon’s Subscribe & Save program offers customers discounts on frequently used products with the convenience of automatic deliveries. This initiative not only simplifies shopping for customers but also generates recurring revenue streams for sellers.
Benefits of Amazon Subscribe & Save
- Boost Customer Loyalty: Subscribers enjoy the convenience of automatic deliveries and discounts on frequently purchased items. This encourages repeat purchases and helps build a loyal customer base.
- Increased Sales Opportunities: Amazon automatically enrols your products in Subscribe & Save if you meet certain criteria (e.g., a product that is over four starts). This allows you to reach more customers and potentially increase your sales volume. Note that Amazon doesn’t automatically assign a Seller Funded discount, but you can change this if you wish. (Watch the video to above to see how).
- Enhanced Customer Experience: Amazon offers additional discounts on larger orders (5% off for subscribing to five or more products in a single delivery). Customers are motivated to buy more at once, which can lead to higher order values.
How Do the Discounts Work for Customers?
Customers subscribing to products through Subscribe & Save enjoy a discount on their purchases. Additionally, if they subscribe to five or more items scheduled for same-day delivery, they receive an extra 5% off their total order from Amazon directly. This setup provides significant savings on frequently used products.
Who Pays for the Discount? Amazon Portion Versus Seller Portion
The discount offered through Subscribe & Save is shared between Amazon and the seller. Amazon typically covers part of the discount from its marketing budget, while the seller contributes to the remainder. The seller can offer 0%, 5%, or 10% off for a subscription to their product while Amazon will provide 5% off if the customer has 5 items coming at the same time in the shipment. The great news? You are not paying for ad clicks for these sales, so you can utilize your average ad spend per order to budget the optimum cost.
Subscription Repeat Cadence
Amazon recommends the subscription cadence based on customer past buying behaviour and other customer purchase dynamics. Your customer gets a warning two weeks ahead of the order processing that the subscription will be coming. At that point they can request it to be delivered sooner, delayed further, or cancelled all together. This ensures that product delivery aligns with each customer’s purchasing habits, making the service more convenient and tailored to their individual needs.
Amazon’s Subscribe & Save is one important way to build loyal customer relationships and boost sales. Be sure to prepare your strategy to maximize the benefits and handle any order volume changes effectively.
Beacon Commerce is here to help you make the most of this tactic. Ready to outshine your competitors on Amazon? Contact us today to get started!