What Is Amazon Subscribe and Save and How Does It Work for FBA Sellers?
The Amazon Subscribe and Save program is one of the best new benefits introduced by Amazon, the world’s largest online retailer and marketplace. While it sounds like it was created exclusively to benefit consumers, it also provides several advantages for sellers of FBA (Fulfillment by Amazon). You get a steady stream of regular customers without much effort and no extra fees.
In this article, we talk about how Amazon Subscribe and Save for FBA sellers and discuss details like how the program works, eligible product categories, and how to register for Subscribe and Save.
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What Is the Amazon Subscribe and Save Program?
Consumers need many things replenished regularly, such as toilet paper, hygiene products, and groceries. Amazon Subscribe and Save is a rewards program where customers schedule frequent free shipping for such items. Buyers save more as they buy more, as long as they schedule the products to be delivered at the same time. Buyers save around 15% when they purchase at least five products and send them to the same address in one auto-delivery.
Benefits for Sellers Joining Subscribe and Save
The program is highly beneficial for FBA sellers:
Customer Loyalty and Engagement
Buyers must subscribe to regular delivery to enjoy the program's benefits, which means sellers gain regular customers in the process. As a seller, it’s best to provide customers with the best deals to gain their loyalty. You can even push it further when you implement personal rewards programs for regular customers.
When you become a dedicated Subscribe and Save store, you can attract a wider audience and boost sales significantly. Loyal customers are more likely to browse the rest of your storefront and purchase other products. More sales improve your organic ranking, so your products show up higher on search results. New customers find you faster and increase sale volume even further.
Increased sales mean more data for sales analytics, which is crucial in improving your products and services. Data gathered from FBA sales activities can enhance your business’s sales processes. For example, you could project future revenue to make smarter business decisions or find new products your customers want.
How Does Amazon Subscribe and Save Work?
To understand how Subscribe and Save works for sellers, one must understand how it works for customers.
Subscribe and Save for Buyers
They choose items indicated in the Subscribe and Save store. When they select items, they also input delivery frequencies, which come in intervals of one month to six months.
Customers can then click the Subscribe Now button, so the item becomes part of auto-delivery. Subscription to a product entails a 5% discount, while five or more products merit a 15% discount.
There are two types of Subscribe and Save orders:
- Sign-up order - When a customer subscribes to a particular product, it automatically becomes a sign-up order.
- Replenishment order - When the customer inputs the delivery frequency, a replenishment order is automatically generated in the following month or months.
Subscribe and Save for Sellers
Sellers have to go into their Seller Central dashboard and add eligible products to the program. They also must maintain stock volumes at certain levels, or products drop out of the program. Amazon fulfills all deliveries on schedule once an order comes in.
You don't have to worry about order fulfillment, customer schedule changes, or changing order volumes as a seller. All you need to do is manage stock levels and check on items from within your dashboard.
Seller Eligibility Requirements for Subscribe and Save
Not all vendors on Amazon can participate in Subscribe and Save. To be eligible, you must have an FBA seller account in good standing. The following are the criteria to be considered:
- Fulfillment history and in-stock rate - The vendor must have been FBA-approved for at least three months with an in-stock rate of 85% or higher.
- Sales performance - The account should show positive sales.
- Seller feedback rating of 4.7 or higher. Seller feedback is different from product reviews.
Additionally, frequent Amazon Subscribe and Save price changes are not appreciated. Sellers cannot change their product pricing frequently or mark up product too high. Tools like Listing Alerts for Amazon keep a check on competitor pricing and can alert you of any changes.
Product Categories Eligible for Subscribe and Save
Not all Amazon products are part of the program. To be a competitive seller, find high-demand products that don’t have a lot of suppliers from the platform. Here are the included product categories:
How Can Sellers Register for Subscribe and Save
First, check your eligibility for the program. Click Settings on the seller dashboard. On the dropdown menu, click Fulfillment by Amazon and then Subscription Settings. You will find your account status there. If you are not eligible for the program but believe you should be, contact Amazon Selling Partner Support.
If you qualify, follow the below steps to register:
1. Enable Settings.
Go to Subscription Settings and click Edit. You’ll redirect to another page where you’ll see two options: enable and disable. Click on the right button and update.
You will then be directed to a page with the Subscribe and Save terms and conditions, which you must agree to move forward.
How to cancel Subscribe and Save on Amazon? Just follow the same steps but click Disable.
2. Add Products
Go to your Seller Central account and add products to your Subscribe and Save inventory file template. Follow these steps:
Help → FBA → FBA features and fees → FBA Subscribe and Save → Add or remove Subscribe and Save products. Next, click on Subscribe and Save inventory file template.
The template has three tabs, one containing clear instructions for putting products into the program. Once done, upload the inventory file.
3. Track Performance
Monitoring performance helps you improve your business. Two critical reports to look out for:
Performance Results Report
To generate, go to your Seller Central account and click Reports, then choose Fulfillment.
On the left is the sales page, where you will find an option for Subscribe and Save performance.
Click on Subscribe and Save Forecasting, located on the top left of the inventory page. The report can help with future pricing and inventory.
Tips and Tricks To Boost Subscribe and Save Sales
With the following strategies, your sales can skyrocket even further
Research Your Customers
According to Google surveys, 40% of marketers make their decisions based on consumer research. Market research helps you understand your target audience—what they want and why they want such products. The research results help you streamline operations, improve marketing strategies, choose products to stock, and prepare your brand design.
Create Product Bundles
Another excellent Amazon strategy is product bundles. To be effective, you must put together frequently bought products. You can review your customers’ purchase history to identify what you can bundle. You can also use Amazon product recommendations to create your bundled deals and entice more customers looking for savings.
Improve Your Seller Feedback
Seller feedback is the customer’s assessment of your performance as a seller. These reviews are visible on your seller profile.
Good seller feedback means higher product placement. Three ways to improve seller feedback:
Ensure there will be no negative customer feedback by providing high-quality products and top-notch services. If you are selling low-cost products from China, inspect them before packaging and delivery.
Provide accurate, highly detailed listings so customers will not be disappointed when they receive the products. Tools like Listing Quality Check for Amazon automatically review your listings and suggest improvements so you can outshine the competition.
Even though Amazon handles delivery, you are still expected to manage customer service. Answer questions promptly, respond to reviews, and be patient with customer inquiries. Resolve invoice requests as soon as possible.
Buyers get convenience and savings from the Amazon Subscribe and Save program. However, sellers also benefit from consistency, customer engagement, and improved analytics. To join the program, sellers must be FBA eligible and have good standing accounts. Amazon will check past seller performance and stock levels before you can participate in the program. You must also sell products in the eligible categories. As long as you know how to maximize the program to your advantage, you’ll surely see a boost in sales!
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Apart from Subscribe & Save, FBA sellers can also target business buyers and expand into the B2B market. Discover Amazon B2B: Guide about Amazon Business to learn about the B2B space.