Amazon Subscribe & Save is a great way for brands to build customer loyalty, get steady sales, and increase product visibility. By offering customers automatic deliveries and discounts, brands can keep buyers coming back.
Subscribe & Save also helps brands plan better by making sales more predictable. This will simplify inventory management. Subscribe & Save products often show up higher in search results, attracting more potential buyers. Overall, this program can be a win-win for brands: customers stay happy while you earn consistent, reliable sales.
In this blog, we’ll cover everything you need to know about Amazon Subscribe & Save. We’ll dive into costs, setup instructions, best practices, common pitfalls, and success stories to help you decide if Subscribe & Save is the right fit for your business.
What is Amazon Subscribe & Save?
Amazon Subscribe & Save is a subscription service that allows customers to sign up for automatic deliveries of eligible products at a frequency they choose – in exchange for a discount. It offers convenience and savings for customers, while helping brands build loyalty through recurring purchases.
This service covers a wide range of product categories, from household essentials like cleaning supplies to consumables like vitamins and pet food. Brands can provide customers with flexible delivery schedules and discounted prices, making it easy for them to maintain a consistent supply of their favorite products.
Key Features of Amazon Subscribe & Save
Customers can save up to 15% when they subscribe to five or more products for monthly deliveries. They can choose the frequency of deliveries (anywhere from one to six months) and receive automatic shipments without having to reorder. Subscribe & Save also includes free shipping, adding another layer of convenience for customers.
Amazon handles the logistics for Subscribe & Save orders, including managing shipment reminders and processing payments. This enables brands to focus on other aspects of their business without worrying about the complexities of running a subscription service.
How Does Subscribe & Save Work?
Amazon Subscribe & Save operates on a simple model that benefits both customers and brands. Let’s cover each section from a high-level perspective before we dive deeper:
For Customers: Customers find eligible products, pick how often they want deliveries, and sign up. They get a 5% discount on a single item or up to 15% if they subscribe to five or more products. Before each delivery, Amazon sends a reminder, and customers can make changes if needed. Payments are processed automatically, and items are shipped on schedule.
For Brands: Setting up Subscribe & Save is easy for brands. Products must be listed through Fulfillment by Amazon (FBA), and brands can set delivery schedules and discount rates. Amazon handles the details such as sending notifications and managing shipments.
Benefits for Brands Using Subscribe & Save
Participating in Subscribe & Save offers many benefits for brands. One of the biggest perks is that it encourages customers to make repeat purchases. Instead of hoping they come back on their own, brands can lock in long-term relationships by offering automatic deliveries. This helps build a more stable and loyal customer base.
The subscription model also makes it easier to predict future sales. Since you know how many products will ship each month, managing inventory becomes less stressful. This helps avoid running out of stock or overstocking, which leads to steady sales and better cash flow.
Products enrolled in Subscribe & Save often rank higher in Amazon search results. They can also get featured in special sections, which increases their visibility and helps attract new customers.
Plus, the data from subscriptions gives valuable insights into customer habits, like how often they buy and which products they prefer. Brands can use this information to better meet customer needs.
Costs Associated with Amazon Subscribe & Save
Amazon Subscribe & Save can be a great way to get more repeat customers, but it comes with a few costs that you need to think about:
- Discounts: To offer Subscribe & Save, you must give customers a discount. Usually, it’s around 5%, but it can go up to 15% if customers subscribe to several items. It’s important to find the right balance. Offering enough of a discount to attract subscribers but not so much that it cuts into your profits. Figure out how much of a discount you can afford while still making money.
- Fulfillment Costs:
Most Subscribe & Save products are fulfilled by Amazon, which means you pay Amazon’s FBA fees. These cover storage, packaging, and shipping. The costs depend on the size, weight, and how long the product stays in Amazon’s warehouse. Keeping an eye on these fees is important to make sure they don’t eat into your profits. - Promotional Costs:
Even though Amazon takes care of the delivery, you still need to spend money on advertising to attract customers to their Subscribe & Save offers. This could mean running ads on Amazon or promoting the offers through other channels. Especially in competitive markets, you might need to spend more to get noticed. These promotional costs should be factored in when thinking about the overall cost of Subscribe & Save.
By managing discounts, keeping fulfillment costs in check, and planning for marketing expenses, you can use Subscribe & Save to grow your business without hurting your profits.
Setting Up Subscribe & Save for Your Brand
Setting up Subscribe & Save for your brand is a multi-step process, but Amazon makes it easy to get started.
- Determine Eligibility: To offer products on Subscribe & Save, they must be fulfilled through FBA since Amazon manages the logistics of recurring shipments. You must also be enrolled in Amazon Brand Registry.
- Select Products and Manage SKUs: Focus on products that customers frequently replenish, such as household supplies, health items, or pet products. Keep your SKUs organized to avoid confusion when setting up subscription parameters.
- Manage Inventory Levels: Ensure you have a system in place to maintain consistent stock levels. Inventory is critical to keep your subscription customers happy and avoid stockouts, which can lead to subscription cancellations.
- Set Pricing and Discount Tiers: Carefully consider the discounts you offer, ensuring they provide value to customers without cutting too deeply into your margins. Monitor customer behavior and adjust discounts as needed.
- Monitor and Optimize Performance: Track key performance indicators, such as subscription rates, customer feedback, and churn. Use this data to optimize pricing, product selection, and marketing strategies, while regularly adjusting inventory levels.
Types of Products Best Suited for Amazon Subscribe & Save
The best products for Amazon Subscribe & Save are items people use often and need to restock regularly. Household products like paper towels, cleaning supplies, and shampoo are perfect for this service. Customers like the ease of getting these everyday items delivered automatically.
Health products like vitamins, supplements, and protein powders also work well. These are things people use daily, so getting them on a regular schedule makes sense. Learn more about how to sell vitamins, minerals, and supplements on Amazon.
Pet supplies, like food and grooming items, are another good match. Pet owners need these regularly. Subscribe & Save helps them avoid having to reorder all the time. Learn more about how to sell pet products on Amazon.
On the other hand, products that are used less often, like electronics or seasonal goods, don’t do as well with subscriptions. Since customers don’t need to restock these items frequently, they are less likely to subscribe.
Generally, essential products that are used up quickly attract more subscribers. This makes shopping easier for customers, increases loyalty, and provides steady sales for brands. Brands that focus on these types of products can succeed with Subscribe & Save by making life easier for customers and encouraging repeat purchases.
Best Subscribe & Save Deals that Attract and Convert Customers
The most attractive Subscribe & Save deals offer clear value and meet customers’ regular needs. Discounts play a significant role, and customers are more likely to subscribe when they see they can save 10-15%. Offering this level of savings, especially for multiple items, strikes the right balance between providing value to customers and protecting your margins.
For long-term success, focus on essential, everyday products that people need to restock often. Perks like exclusive bundles can make your subscription offering even more attractive.
Seasonal products can also work if timed well, such as offering Subscribe & Save deals on holiday decorations or winter gear during the appropriate season. However, it’s best to focus primarily on year-round essentials to maintain steady subscription rates.
Common Mistakes to Avoid with Amazon Subscribe & Save
While Subscribe & Save offers many opportunities, there are some mistakes brands should avoid. One common mistake is underestimating demand, which can lead to running out of stock. This frustrates customers and may cause them to cancel their subscriptions. It’s important to accurately predict how much inventory you’ll need.
Another mistake is not offering competitive discounts. Customers often compare subscription deals, so if your discount isn’t good enough, they may go to a competitor. Make sure your discount is both attractive and sustainable for your business.
Choosing the wrong products can also hurt your success. Not all items work well for subscriptions – especially those that customers don’t need to reorder often.
Finally, don’t ignore customer feedback. Regularly checking customer reviews and comments can help you improve your products or service, such as adjusting delivery frequency or fixing product issues.
Is Subscribe & Save Worth It for Your Brand?
If you sell products that customers buy regularly, Amazon Subscribe & Save could be a great fit for your brand. It helps build long-term relationships, offers predictable sales, and increases visibility on Amazon.
However, consider the costs involved, like discounts and fulfillment fees. If you can balance offering value to customers while staying profitable, Subscribe & Save can be a powerful tool to grow your business.
Case Studies: Subscribe & Save Success Stories
Case Study 1: Pet ‘n Shape
Pet ‘n Shape is one of the top dog treat suppliers in the U.S. As demand for their products increased, they realized Amazon Subscribe & Save could offer savings and convenience to customers.
Pet ‘n Shape worked with Channel Key to improve their subscription service. We started by identifying the right audience using Amazon data. Then we revamped their Brand Store, improved product listings, and targeted high-traffic keywords to attract more customers. The last piece of the puzzle was driving new-to-brand traffic with a combination of advertising levers.
Within 12 months, Pet ‘n Shape saw a 168% increase in subscribers – with a 70% average conversion rate. View and download the full case study.
Case Study 2: Consumer Packaged Goods Brand
A consumer-packaged goods brand working with Channel Key had seen good results with PPC ads but wanted to experiment with Amazon DSP.
Channel Key focused on two main areas. First, we launched off-Amazon DSP campaigns to reach new customers. Second, we retargeted past customers to increase Subscribe & Save sign-ups, driving repeat sales and loyalty.
In one year, our client saw a 67% increase in subscribers and a 22% increase in new customers. By focusing on building customer loyalty, we helped our client grow repeat purchases, increasing orders from their top products by over 40%. View and download the full case study.
How to Cancel Amazon Subscribe & Save Deals
If you decide Subscribe & Save isn’t working for certain products, canceling it is simple. But you’ll want to handle it carefully to avoid upsetting customers. Start by logging into your Seller Central account and going to the Subscribe & Save settings. From there, you can remove the products you no longer want by changing your product listing settings. Make sure to save everything and double-check that the changes show up correctly.
Once you’ve removed the products, Amazon will notify your customers. It’s still a good idea to reach out to them yourself. You can send an email or a message explaining why the product won’t be available for subscription anymore. If possible, recommend a similar product they might like instead. This helps keep your customers informed and minimizes any frustration.
Lastly, look at your inventory. Since canceling Subscribe & Save might lower your sales on those products, make sure you don’t end up with too much stock. By managing these steps carefully, you can cancel Subscribe & Save without hurting your relationship with customers or impacting your business too much.
Channel Key Takeaway
Amazon Subscribe & Save is a powerful tool for building customer loyalty, generating steady revenue, and increasing visibility on Amazon. By choosing the right products, offering smart discounts, and managing inventory carefully, your brand can benefit from this subscription model. Whether you’re new to Subscribe & Save or looking to improve your current strategy, it can help your brand thrive in today’s competitive marketplace.
