Launched in 2007 in the USA and introduced in January 2018 in India, Amazon Subscribe & Save is an innovative feature which has the potential to increase a seller’s overall sales by 10-30%, gain repetitive customers, expand the brand, get reliable business and that too at a lower user acquisition cost! Let’s understand this feature of Amazon in more depth.
What is Amazon Subscribe & Save?
The Subscribe & Save feature allows Amazon customers to receive regular shipments of products they frequently use. Subscribers will receive discounts and maybe free delivery on their Subscribe & Save orders, as determined by the individual merchants.
Buyers can save 5% to 15% on the selling price by scheduling repeat delivery of their favorite items with Subscribe and Save.
The quantity, delivery frequency, and date are all determined by the buyers. At any time, they can change or discontinue their subscription.
Buyers enjoy it because it reduces the cost of products and allows them to spend less time reordering items they frequently buy.
It appeals to sellers because it ensures long-term revenue and boosts client loyalty.
Which products are ideal for Amazon Subscribe and Save?
Subscribe and Save is best for products that require regular refilling. Furniture and pricey electronics are examples of higher-priced ‘one-time’ things that are not suitable.
Here is a list of some of the most popular Subscribe and Save categories:
- Health and Personal Care
- Office Products
- Grocery & Gourmet Foods
- Home and Kitchen
- Sports, Fitness and Outdoors
- Pet Supplies
- Car & Motorbike Accessories
- Personal care appliances
- Lawn and Garden
- Luxury Beauty
- BISS (Business Industrial and Scientific Supply)
- Personal Computer
Source: Amazon Seller Central
There is a maximum possible savings percentage for each product category. Most start at 5% and increase to 10% or 15% based on the category and the number of current subscriptions a customer has.
Benefits of Subscribe & Save to Seller
S&S is appropriate for products that are acquired on a regular basis. Customers can specify how frequently they want their supplies restocked.
Here are the basics of joining the programme, but before we do, let’s take a minute to understand why sellers love it so much.
- Increase Lifetime Value
You don’t have to fight for the Buy Box a second time once you’ve ‘captured’ a consumer into your S&S program. S&S is only one of the numerous strategies to boost Amazon’s customer lifetime value.
- Increase Brand Loyalty
Customers should/can be deterred from moving to other brands by the ease of a subscription re-order.
- Attract Amazon’s High-Value Customers
S&S draws Amazon’s most savvy and loyal consumers. People who buy more of their goods on Amazon than anywhere else.
According to Amazon data, people who utilize S&S buy more frequently and spend more per visit.
- Increase Product Sales
If you ask Amazon, they’ll tell you that things in the program sell at a much higher rate than products that aren’t.
- Increase Buy Box Win Rate
Given buyers’ strong affinity for S&S, brand owners that compete against resellers enjoy a significant advantage. With the subscription buy box being the default option for buyers, the brand’s win rate will increase automatically.
It will also deter resellers. If you’re experiencing trouble with unauthorized resellers, this could be a good approach to keep them from competing against you.
Benefits of Subscribe and Save to Buyers
- Additional savings when you sign up for Subscribe and Save.
- Shipping is free.
- Delivery dates that are flexible, with the opportunity to change the delivery date.
- Hassle free automatic delivery
- Available in a variety of categories
Eligibility Criteria for Sellers
You can participate in Amazon’s Subscribe and Save programme in your account settings if you qualify for the eligibility requirements. Your sales history and seller performance metrics are among the top eligibility criteria, but they are not the only ones. To be eligible to participate, you must complete the following requirements:
- FBA India Status is active for the last three months.
- Customer feedback rating is 3.8 or above.
- You have your status as a seller on Amazon.in as ‘Normal,’ i.e., your status should not be either ‘Fraud,’ ‘Suspended,’ or ‘Blocked.’
- The products you list on Amazon.in should fall under relevant categories.
- Number of offers provided by you under Subscribe and Save and have been blocked, for any reason, should be less than 1/3 of the total number of offers provided by you.
There could be other eligibility criteria in addition to the above. For more details, please refer to the FBA Subscribe & Save Seller Terms and Conditions.
Source: Amazon SellerCentral
How to check for eligibility?
Using Seller Central, you can immediately see if you’re eligible for Amazon’s Subscribe & Save programme. Follow the steps below to accomplish this:
Step 1: Click the settings button in the right corner of the seller central dashboard.
Step 2: From the dropdown menu, select Fulfillment by Amazon.
Step 3: A variety of menu options will appear once you click this. Select Subscription Settings from the drop-down menu.
Step 4: This area displays your current Subscribe & Save status and indicates whether you are eligible to participate.
Steps to enable Subscribe and Save program?
From the subscription option, click the Edit button on the right, select Enable using the toggle button, and then click Update.
After that, read the terms and conditions of the Subscribe and Save program, make sure you understand them, and then click the Agree option.
You can now sell on Amazon’s Subscribe & Save service once this is completed.
How to add products to the Save & Subscribe Program?
Here’s what you’ll need to do to add products to the Save and Subscribe program:
Step 1: Create an inventory file using the Subscribe & Save template. Log in to your Seller Central account. Click on ‘Help’ from the menu bar. FBA (Fulfillment by Amazon) > FBA features & fees > FBA subscribe & save > Add or remove S&S products.
You now need to click on ‘subscribe & save inventory file template.’
Step 2: After completing step 1, you will be given an excel page with three tabs. You’ll find detailed instructions on how to upload product data to the subscribe & save the program on the instructions tab.
Prepare the inventory file and upload it.
Overview of the excel file:
- Open Excel and go to the Instructions tab to examine the guidelines.
- Look over the samples on the Examples tab.
- Type the MSKUs for the product in the SKU column on the tab Template. Type Enable in the Action column to enable the items or Disable to disable the previously enabled items.
- When saving the file, make sure you choose Text (*.txt) from the drop-down menu.
- On the ‘example tab’ sheet, we can sample templates.
- Column A: In this column, enter the product SKUs that you want to list. Make sure you use the correct SKU. Do not use the ASIN.
- Column B: Enter ‘enable’ or ‘disable’ here, depending on what action you want to take.
After you’ve filled up the template, you’ll need to upload it. To do so, go to Seller Central and select File Upload under Add or Remove Subscribe & Save Products.
You will be redirected to a summary page after the upload has been completed, where you will see a list of successfully enrolled products and those that had upload errors.
Setting up an account with Amazon Seller Central isn’t the same as becoming an Amazon Vendor.
It’s a platform that’s only accessible via invitation. You can’t just apply; you’ll need an Amazon invite first.
How do you go about getting one? Amazon has a vendor recruitment team that looks for new brands and products to offer all around the world.
Recruiters usually look for:
- Those with high sales on Seller Central.
- Popular product sellers on the marketplace.
- Interesting products exhibitors at trade shows and fairs.
You’ll receive an email inviting you to join Vendor Central if Amazon is interested in what you’re selling. The team will walk you through the steps of the procedure and the terms of the agreement.
As soon as you agree to the terms, you’ll receive access to a Vendor Central account and can begin directly supplying Amazon.
Connect with us: Paxcom India Pvt. Ltd.
You can get in touch with us, and our team of experts can also help you with enabling this feature for your brand.