Is Amazon Subscribe and Save Worth It?
Learn more about Amazon Subscribe and Save and get tips on how you can use the program to nurture loyal customers.
What products do you buy regularly? And how would you like to get them at reduced rates while putting your orders on autopilot? Discounts and time efficiency summarize the appeal of Amazon Subscribe and Save.
It’s no surprise that a good size of the market seems to appreciate the convenience of subscription programs more and more. In fact, 2024 data from PYMNTS revealed that over one in every four people shop via subscription and auto refill programs.
Subscription Shopping Personas (Source – PYMNTS)
Let’s explore how Amazon sellers can take advantage of this growing shopping behavior. We’ll tackle how Subscribe & Save works, and discuss best practices for success.
What is Amazon Subscribe and Save?
Subscribe and Save on Amazon is a subscription-based service that allows customers to receive regular deliveries of their favorite products at scheduled intervals.
Unlike promotions and short-term discounts, Amazon Subscribe and Save offers long-term savings, especially for repeat purchases. Once enrolled, customers can enjoy free shipping.
How Does Amazon Subscribe and Save Work?
Shoppers can browse a wide range of categories—from household essentials to beauty products—and select the items they want to subscribe to.
Once they choose an item, they can set up Amazon auto delivery, deciding how often they want the product delivered, with options ranging from once a month to every six months.
Each time an item is delivered, customers automatically receive discounts. Individual items come with a 5% discount. However, when they subscribe to five or more items for the same delivery date, the discount increases to 15%.
In addition, Amazon Subscribe and Save deals often feature exclusive savings. These deals can be stacked on top of regular subscription discounts, providing significant savings opportunities for repeat buyers.
To give you an idea of the type of products shoppers use Amazon Subscribe and Save for, here is 2021 data from Statista:
Leading Amazon Subscribe and Save product categories in Canada (Source – Statista)
The data show that the leading product categories are pet care, health and wellness, paper towels and toilet paper, household cleaners, and hot beverages.
If you’re a pet owner who takes health supplements, enjoys a daily morning cup of coffee, and already has your go-to brands for toilet paper and household cleaners, you’ll fully understand the convenience of Amazon Subscribe and Save, as reflected in Statista’s data.
Benefits of the Subscribe and Save Program for Sellers
Customer Loyalty and Repeat Purchases
One of the primary benefits for sellers is the ability to build a loyal customer base that returns for repeat purchases. With automatic orders and consistent demand, sellers can focus less on acquiring new customers and more on retaining existing ones.
Better Control over Restock Limits
Amazon enforces restock limits, capping the amount of inventory sellers can send to its fulfillment centers. With the predictable sales flow that Subscribe and Save offers, sellers can better manage their stock by aligning shipments with customer demand.
By understanding when and how often your products are being ordered, you can maintain optimal stock levels without exceeding these limits.
Easier Inventory Management
Subscribe and Save allows you to optimize how you manage your inventory. Regular, scheduled orders provide the data necessary to plan ahead, minimizing stock wastage and improving supply chain efficiency.
Alongside warehouse management tools, sellers can use the Subscribe and Save program to synchronize their procurement processes with upcoming subscription deliveries.
How to Enroll in Amazon Subscribe and Save as a Seller
Here’s how you can get started as a seller on Amazon Subscribe and Save:
Log in to Seller Central
Begin by logging into your Seller Central account. If you’re not already a seller on Amazon, you’ll need to sign up. It’s recommended to opt for a Professional selling plan to access the full suite of services that Amazon provides, including the Subscribe and Save program.
Enroll Your Brand
You have to register your brand in Amazon Brand Registry if you have the rights to sell products from an eligible brand. If you’re an employee of an enrolled brand, you’ll need the rights owner or an administrator to assign you the brand representative role.
List Your Products
After your brand is registered, you’ll need to list your products in the Amazon store. This can be done by creating new product detail pages or matching your offers to existing pages.
Amazon evaluates product eligibility based on the following conditions:
The stock rate over the past 28 days must exceed 90%.
The product must not fall under any restricted categories.
The average selling price should be under $200.
The product must be available for purchase.
Some products may be automatically enrolled in the program.
Set Up Fulfillment by Amazon
To be automatically enrolled in Amazon Subscribe and Save, you must fulfill your products through Amazon FBA. Once your inventory is sent to Amazon, the platform will handle packing, shipping, and customer orders.
There’s also an option to enroll in the program without using Amazon FBA. If this is the case for you, then reach out to Seller Support to register in the program.
Manage Products and Discounts
Once enrolled, visit the Subscribe & Save section in Seller Central to manage your subscription products, set seller-funded discounts (5% or 10%), and track performance metrics.
Products start with a 0% seller-funded discount by default, but you can adjust this to enhance customer appeal. Amazon also funds an additional 5% discount for customers who subscribe to five or more products in a single delivery.
Amazon Subscribe and Save Best Practices
Here are a few Amazon Subscribe and Save best practices, along with actionable tips to optimize your implementation.
Maintain Consistent Stock Levels
For sellers, one of the key challenges is staying eligible for the program, which requires a high in-stock rate. A stock-out can lead to losing valuable repeat customers, reducing both revenue and product visibility.
Even outside Subscribe & Save, stock outs can indeed hurt a business, as proven by data cited by Repsly.
Consumers’ Reaction to Stockouts (Source – Repsly)
Actionable Tip. Use inventory management tools and set up automatic stock alerts to ensure your products remain above Amazon’s required in-stock percentage of 90% over a trailing 28-day period.
Optimize Pricing for Repeat Buyers
While discounts are a central feature of Subscribe and Save, you don’t want to erode your profit margins too much. Finding the sweet spot between enticing customers with discounts and keeping a healthy margin is critical.
Actionable Tip. Regularly review your pricing and discounts. Try offering a 5-10% seller-funded discount on top of Amazon’s discounts to encourage bulk subscriptions while maintaining profitability.
Monitor and Manage Restock Limits
Amazon restock limits can restrict the amount of inventory you send to fulfillment centers, which can be problematic for products with high subscription demand. Managing these limits is vital to ensuring a smooth subscription experience.
Actionable Tip. Plan ahead by using tools like Amazon’s Inventory Performance Index (IPI) to track your restock limits. Consider spreading inventory across multiple fulfillment centers if possible to avoid running out of stock.
Track Customer Metrics and Feedback
Understanding your Subscribe and Save customers’ behavior is essential for long-term success. Monitoring customer feedback and repeat purchase rates can help you improve your offers and products.
Data cited by Localiq emphasizes the importance of customer feedback in nurturing repeat customers. The study shows that more than nine out of ten shoppers won’t do a repeat purchase if they’re not happy with what they paid for.
Why Customer Feedback Matters (Source – Localiq)
Actionable Tip. Regularly analyze customer reviews and purchase data. Use this information to refine your product offerings or improve your subscription services based on customer preferences.
Leverage Seller Promotions to Drive Subscriptions
Seller promotions can also apply to products in the Subscribe & Save program, making it a versatile tool for sellers looking to boost customer retention.
Seller promotions can help boost your subscription rates by attracting new customers. Running targeted promotions can significantly increase the number of subscribers, especially if timed correctly.
Actionable Tip. Pair Amazon Lightning Deals with Subscribe and Save to entice new subscribers. Use seller-funded discounts during high-demand periods like holidays or seasonal sales to capture new customers.
The Lowdown
Now we go back to our original question: is Subscribe and Save worth it for Amazon sellers? The short answer is yes—if you play your cards right. Sellers can enjoy long-term benefits by tapping into repeat purchases and predictable revenue streams.
The power of Amazon Subscribe and Save lies in its ability to foster customer loyalty and create a reliable, recurring revenue model for sellers.
For professional guidance on Amazon programs, reaching out to a specialized firm such as AMZ Advisers can provide the expert support you need to optimize your seller account.
These consultants offer tailored strategies to help you navigate everything from inventory management to maximizing seller promotions and restock limits.
Author
Carla Bauto Deña is a journalist and content writer producing stories for traditional and digital media. She believes in empowering small businesses with the help of innovative solutions, such as e-commerce and digital marketing.
The post Is Amazon Subscribe and Save Worth It? appeared first on AMZ Advisers.
