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

News & Insights

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

What is the Amazon Subscribe and Save program?

A little-known feature on Amazon has been on their site since 2007. Amazon’s Subscribe and Save program gives shoppers the opportunity to receive routine and scheduled deliveries of household necessities at a discounted rate. It’s an excellent way for shoppers to save money on their most-used items at home and gives FBA sellers a chance to improve their customer retention.Customers select products to be delivered every one to six months, and they are provided a discount with every order that successfully gets delivered. They can cancel any order they don’t need without penalty, and those that place orders for five or more products in a month are given an even steeper discount.

Product Listing Page with a Subscribe & Save Option | Amify

An example of a product page with the Subscribe and Save option available.[/caption]

Subscribe and Save Updates

In Q1 of 2020, Amazon released three primary new updates to their Subscribe and Save program. They are:

  1. Product Enrollment
  2. Tiered Discounts
  3. Who Funds the Discounts

Product Enrollment

In the past, Amazon used to rely on sellers to choose which of their products to offer subscriptions. With this new update, Amazon automatically chooses what items are the most applicable to regular use and enables the Subscribe and Save program at a flat 0% discount. This change means items listed on a seller’s page could end up below their Minimum Advertised Price, but Amazon gets around this complaint by not showing the discounted price on the product detail page. The discount is only applied if a customer fulfills five or more orders of that item in a month (they would get a 5% Amazon-funded discount.) For sellers who want to offer a 5% or 10% discount, they must contact the Amazon Subscribe and Save team to check their eligibility or to remove themselves from the program.

Tiered Discounts

As previously mentioned, sellers can now offer a 5% or 10% discount to repeat customers. Amazon asserts those who offer the 10% discount can increase their conversion rates by 1.8X as compared to not offering a discount at all. Sellers who have the ability to provide those discounts can alter their selling strategy based on varying industry factors, and those that offer the 10% discount gives sellers a substantial competitive edge over other competitors who offer none.

Who Funds the Discounts

Previously, sellers saw no benefit for paying for the higher discount rates for their customers in the Subscribe and Save 5+ monthly subscription program. Those subscriptions didn’t have to be from the same seller, so sellers were essentially paying for consumers to be loyal to Amazon (and not them). Starting in Q1 of 2020, Amazon is now taking responsibility for the additional discount, by making it a standard 5% above the seller discount. In this manner, sellers are responsible only for the 5% they’ve agreed to (and if they want to offer a 10% discount, they’ll have to talk with the Subscribe and Save team.)

If you have any more questions on the Subscribe and Save program or selling on Amazon, we’re here for you. Contact us – we welcome the opportunity to help you in this trying time.

More Resources And Articles

Discover effective inventory management strategies to prevent excess stock, avoid Amazon's long-term storage fees, & optimize profitability.

Inventory Strategies to Avoid Amazon’s Long-Term Storage Fees

Explore the nuances of Amazon and Google SEO and to boost visibility and success on the most dominant ecommerce platforms.

Amazon and Google Algorithms Require a Tailored Approach to SEO

Discover how optimizing your supply chain can boost your profit margins on Amazon, thanks to strategic planning, efficient management, and leaner operations.

A Leaner Supply Chain Can Lead to Bigger Profits on Amazon

Explore how setting Specific, Measurable, Achievable, Relevant and Time-bound goals can pave the way to success for Amazon sellers.

Setting Amazon SMART Goals for the New Year

Uncover the most effective strategies to manage seasonal fluctuations in demand, reduce supply chain stress, and grow your Amazon business.

Ease the Supply Chain Stress of Seasonal Demand

Explore the risks that excess inventory poses to Amazon sellers and the strategic solutions that can overcome them.

Don’t Let Excess Inventory Hinder Amazon Success

Discover how supply chain compliance can help you overcome Amazon's regulatory challenges and ensure seamless operations.

Supply Chain Compliance is Vital to Navigating Amazon’s Regulatory Hurdles

Explore how Amazon is leveraging Artificial Intelligence to combat fraudulent reviews and enhance trust and reliability on its platform.

AI is Amazon’s Newest Weapon Against Fraudulent Reviews

Contact Us

Learn more about how we can help your Amazon business succeed!