What You Need To Know About Amazon’s Subscribe & Save Program

What is the Amazon Subscribe & Save program?

Amazon’s Subscribe & Save program allows customers to schedule recurring deliveries of essential products at a discounted rate. Launched in 2007, this program helps shoppers save money while giving FBA sellers an opportunity to enhance customer retention and boost recurring revenue.

Subscribers can choose regular delivery intervals—such as monthly—and receive a discount on every order. Customers who subscribe to five or more items in a single month qualify for an even greater discount. The program offers flexibility, as customers can cancel subscriptions anytime without penalties.

Eligibility Requirements

To participate in the Subscribe & Save program, sellers must meet the following criteria:

Seller eligibility

• Must have an active Amazon selling account in good standing
• Must be the brand owner with products enrolled in the Brand Registry

Product eligibility

• Must maintain an in-stock rate of at least 90% over the past 28 days
• Must not belong to a restricted category
• Must have an average selling price below $200
• Must be buyable and meet Amazon’s fulfillment requirements

Offer eligibility (must be maintained for 3 consecutive months)

• Free domestic shipping
• Valid tracking rate of 95% or higher
• Order defect rate below 1%
• Pre-fulfillment cancel rate below 2.5%
• Delivery estimate accuracy above 93.5%
• Late shipment rate below 4%
• Average domestic delivery time of fewer than 5 days

Amazon automatically enrolls eligible products in Subscribe & Save at the default discount rate (set at 0% unless adjusted in Seller Central).

What Products Can Be Enrolled in Amazon’s Subscribe & Save?

Subscribe & Save is available for select product categories, including:

• Beauty
• Grocery
• Health & Baby Care
• Automotive Parts & Tools
• Electronics
• Tools & Home Improvement
• Industrial Supplies
• Kitchen
• Lawn & Garden
• Musical Instruments
• Office Supplies
• Outdoors
• Pet Supplies
• Sports
• Toys

‍How Subscribe & Save discounts work

Sellers can choose to offer either a 5% or 10% discount on their Subscribe & Save products. Amazon reports that offering a 10% discount can increase conversion rates by 1.8x compared to not offering a discount.

Who funds the discounts?

Previously, sellers bore the cost of the higher discount tiers, which often benefited Amazon more than individual brands. Amazon has since adjusted the funding structure:

• 0% Seller Discount: Customers receive no discount for four subscribed products in a single order. If they subscribe to five or more products, Amazon funds a 5% discount.
• 5% Seller Discount: Customers receive a 5% discount for four subscribed products (funded by the seller). If they subscribe to five or more, Amazon funds an additional 5%, bringing the total discount to 10%.
• 10% Seller Discount: Customers receive a 10% discount for four subscribed products (funded by the seller). If they subscribe to five or more, Amazon adds an additional 5%, bringing the total discount to 15%.

FAQs about Amazon Subscribe & Save

How are Subscribe & Save orders fulfilled?

Products must be sold through Amazon FBA to qualify. While exceptions may be granted for self-fulfilled products, sellers must contact Amazon support to request approval.

Are there fees for participating in Subscribe & Save?

There are no direct fees, but sellers must account for discount costs and any impact on profit margins. Standard FBA fees and Amazon selling fees still apply.

What are the benefits of offering Subscribe & Save?

Key benefits include increased sales volume, improved customer retention, predictable revenue, enhanced product visibility, and stronger brand loyalty.

How does Subscribe & Save impact inventory management?

With predictable recurring orders, sellers can better anticipate demand and manage inventory more effectively to prevent stockouts and excess storage fees.

Can sellers control the discounts offered?

Yes, sellers can select from three discount options: 0%, 5%, or 10%. When customers subscribe to five or more products, Amazon funds an additional 5% discount.

How does pricing work for Subscribe & Save?

Pricing must be competitive and attractive enough to justify the subscription model. Sellers should carefully calculate their discounts to maintain healthy profit margins.

How frequently can customers receive Subscribe & Save deliveries?

Customers can select from multiple delivery intervals, including every 2 weeks, 1 month, 2 months, or 3 months, with the latter being one of the most popular choices.

If you have more questions about Amazon Subscribe & Save or need help optimizing your Amazon strategy, contact us today.

If you have any more questions on the Subscribe & Save program or selling on Amazon, we’re here to help. Contact us today.