What is Amazon Subscribe and Save
Amazon Subscribe and Save is an FBA program that allows Amazon customers to sign-up for recurring, scheduled deliveries of products that they use frequently. This helps customers cut down on the frequent trips to the brick & mortar retailer in their neighborhood. When customers subscribe, they receive a base discount for the products they order. This base discount is funded by the seller of the item, and in some cases is funded by Amazon. The customer is also given the opportunity to customize how frequently their item needs to be delivered.
Sellers benefit from the Subscribe & Save program by building an active, consistent customer base for their products on Amazon. This program allows Sellers to more effectively forecast the demand for their products. The program is most effective for consumable or single-use products that customers will need to re-order monthly.
What are the requirements for Subscribe and Save
Only sellers that have an FBA account in good standing are eligible. Effective December 18, 2019, only Brand Registered Sellers are allowed to enroll their products in Subscribe & Save. Sellers that do not have the option to enable Subscribe and Save in their account settings, but believe their account is eligible, should contact Selling Partner Support.
For Brand Registered Sellers that are currently enrolled in the Subscribe and Save program, certain ASINs may not be eligible for the program. Amazon requires that ASINs must be sold in FBA for 3 months or longer to be eligible. Both the ASIN and the SKU must be active at the time of enrollment, and not be enrolled in any other FBA Programs that could impact Subscribe and Save Performance. The ASIN and SKU should also have a strong history of being in stock, and sales performances must exceed Amazon’s internal requirements.
Additionally, poor performance metrics can affect your ability to participate in the program. The selling account must demonstrate the ability to consistently remain compliant with all FBA Policies, and maintain strong Account Health Performance. Seller performance reviews are ongoing in order to ensure a positive Amazon customer experience. Amazon will consider FBA inventory performance, customer feedback, and Subscribe & Save order cancellations.
How to Enroll Products in Subscribe and Save
As of December 2019, products from eligible FBA seller accounts are automatically enrolled in the program. Eligible, replenishable items will be automatically enrolled at a 0% base discount, at no cost to the seller. Amazon will fund an additional 5% tiered discount when customers receive five or more items in one delivery.
Sellers that wish to enroll new products that have not been automatically enrolled should send an email to fba-sns-help@amazon.com.
What Discounts Can you set up with Subscribe and Save
Sellers can choose from three base funding options: 0%, 5%, or 10%. These Base Discounts will apply to all Amazon customers who receive four or fewer subscriptions in a delivery. For Amazon customers who receive five or more subscriptions in a delivery, they will reach tiered status, and Amazon will fund an additional 5% discount (for a limited time).
Seller coupons and promotional discounts are added to Subscribe & Save Discounts, so sellers should consider the impact of running a lightning deal or other promotion on any ASIN & SKU that is also enrolled in Subscribe & Save.
Does Your Product Make Sense for Subscribe & Save
Sellers that offer consumable, single-use products on Amazon through the Fulfillment by Amazon program should definitely consider enrolling in Subscribe and Save. All Sellers who have active offers in eligible categories should consider testing Subscribe & Save for their products. As with all Amazon selling strategies, sellers should be prepared to test and measure the impact that Subscribe & Save has on their business. Amazon offers additional reporting on Subscribe & Save, and sellers should be familiar with this reporting.
Subscribe & Save Manage Products - is a performance dashboard that helps sellers review the following metrics for weekly, monthly, quarterly, and yearly timeframes:
Shipped Units: How many units shipped for subscription orders over a given time period.
Shipped Revenue: Sum of revenue for subscription orders over a given time period.
Subscriptions Count: The Number of Active Prescriptions at the end of a given time period.
Not Delivered due to Out of Stock: Percentage of Units that were not delivered because ASIN was Out of Stock
Average Revenue Per Customer: A comparison of average revenue from subscribers vs. non - subscribers
Planned Revenue: Sum of your revenue from orders expected to ship for active subscriptions
Planned Units: Number of Units for orders expected to ship for active subscriptions
Subscribe and Save Forecasting Report - This Fulfillment report can be used to help a business decide how many units will be required to fulfill subscriptions for any Subscribe & Save offer up to eight weeks in advance.
Subscribe and Save could be a great way to build customer loyalty and make forecasting inventory needs and sales projections much easier. If you have any questions about enrolling in Subscribe and save, please contact Goat Consulting below.