Amazon’s “adapt or die” philosophy has revolutionized the way eCommerce functioned in its early stages. Therefore, it was no surprise that in 2017, the retail giant introduced the Subscribe & Save Deals program, targeting consumers on a whole different level.
Once upon a time, books were the most purchased items on Amazon. Fast-forward to 2020, and we’re now seeing a different trend. Nowadays, shoppers around the world go online to buy anything from groceries and beauty products to clothing items and electronics.
The Amazon Subscribe & Save program allows customers to sign up for regular deliveries of products they often use. This includes essentials like toothpaste, toilet paper, and baby diapers just to name a few. In return, customers get discounts and free shipping deals.
What Makes Amazon Subscribe & Save Attractive to Customers?
When a customer subscribes to product delivery, they are given options to choose the product, how many they want to be delivered, and how often those deliveries will be made. They get a 5% discount per subscription if they subscribe to four or fewer products. Should the customer decide to subscribe to a fifth, they receive a 15% discount on their entire order.
You can just imagine the amount of money subscribers can save. It’s a very attractive program.
Another reason why many Amazon customers avail of the Amazon Subscribe & Save program is time saved. The program takes hours off of their routine errand runs. Instead of going to the supermarket, all they have to do is subscribe and wait for the items to be delivered.
Subscribe & Save allows customers the convenience of having someone do all the heavy lifting for them in terms of the delivery itself.
What’s In It For You?
It’s fair to say that when a program allows consumers to save time and money, it’s always going to be a good deal. What makes the Amazon Subscribe & Save program interesting is that the customers aren’t the only ones who stand to benefit from it. Even sellers stand to gain given how attractive it is to buyers.
Having said that, it only makes sense for sellers to take advantage of such a program to maximize sales and revenue for the following reasons.
1. Increased Visibility
Products on offer through the Amazon Subscribe & Save program are automatically added to the Subscribe & Save Storefront. Getting your products in the program, therefore, helps sellers gain visibility on the marketplace. Every time a customer browses ASINs enabled for Amazon Subscribe & Save, that’s extra exposure.
2. It Promotes Brand Loyalty
It’s fair to say that having the option to subscribe and save can lead to brand loyalty and increased market share. If you can convince someone to buy once, getting them to commit to buying indefinitely is not far-fetched. Especially with the Amazon Subscribe & Save program, buying the next round is easier and cheaper. It eliminates the need to search for products and choose a brand all over again.
For most consumers, going to the supermarket every time an essential is running low is a hassle. Plus, having to remember when to buy what items and how much of it is needed makes it complicated.
Taking away all the guesswork is without a doubt a huge convenience. When Amazon Subscribe & Save brings this to the table, your value proposition grows stronger. This gives you a leg over your competitors.
4. Potential for Multiple Purchases
The fact that the customer is presented with two options already puts you at an advantage. Whether they choose to do a one-time purchase or commit to recurring purchases in the future, both lead to a sale. Not all customers have to commit to future purchases for you to increase your revenue, either. You only need a fraction of your customers to come back for more.
5. Consistent Revenue Projection
Having the ability to retain a certain portion of repeat purchases through subscriptions can help you predict at least part of your monthly revenue. It goes without saying that making accurate revenue projections is always good for business. Accurate revenue projections help you stabilize your income and make smarter investments. It can also allow you to secure funding given the reliability of your data.
Tips to Optimize Your Subscribe and Save Offers
Given these potential benefits, you’d want to make the most of this program as a seller. Optimizing your Subscribe & Save offers can help you maximize your revenue and encourage more people to stay loyal to your brand.
Here are a couple of tips and tricks to consider:
1. Do your research
If you really want to harness the power of Amazon Subscribe & Save, you need to do a lot of research.
Take the time to check out what your competitors are doing. What kind of discounts are they offering? Which products do they have enrolled in the program? Scouting the competition will give you a better idea of what works and what doesn’t.
You may also consider visiting physical retail stores.
Check out the flyers they disseminate over a couple of months to see the types of products they have on sale and how much of a discount they are slashing off the price. If local supermarkets can offer consumers a better deal, they’ll be less likely to buy from you. Since Subscribe & Save products are mostly non-perishables, the possibility of losing sales to cheaper offers is very high.
2. Review your customers’ history
Take a closer look at your repeat customers’ purchase history to learn which products and in what sizes and quantities they prefer. This will give you a better idea of what to include in your bundles. Check as well how often they buy different products so you can make sure you always have everything they need.
More than satisfying repeat customers, knowing these numbers will help you to attract more subscriptions and further increase your revenue steadily over the long term.
3. Ramp up your offers
There’s no question that convenience is the biggest key when it comes to online shopping. Consumers can shop at any number of wholesale stores to get cheaper items. Not everyone, however, has the space to accommodate several months’ worth of supplies. The convenience lies in receiving a steady supply of consumables without having to stock bulky items for months on end.
4. Come up with bundles that make sense
There will always be items that go together perfectly. Shampoo and conditioner, laundry detergent and fabric softener, baby diapers and wet wipes – you know what I’m getting at.
You need to think of products that you can bundle together and discount exclusively for Subscribe & Save orders. Experiment with different combinations and track the results. The right discounts on the right bundles can skyrocket your sales.
5. Take eligibility seriously
You must be enrolled in FBA before you can even apply to get your eligible offers in the Amazon Subscribe & Save program. You must also have a good seller performance rating with a feedback score of at least 4.7 and a strong sales history over at least 3 months to be considered for the program.
Amazon Subscribe & Save offers appear to customers via the Buy Box. You must, therefore, win the buy box – and maintain a good performance – if you want to take advantage of the program’s many benefits.
Meeting stock requirements is another very important factor. Amazon requires an in-stock percentage of 85% to remain eligible.
There’s no question that the Amazon Subscribe & Save program comes with a ton of benefits that go both ways.
While customers can save time and money, it also allows sellers to sell more and gain larger and more stable revenue. Enrolling products in the program is not enough to succeed, however.
If you want to make the most of the program, you need work at maintaining your eligibility. Be creative and consistently measure results.
The tips provided above should give you a head start. The thing you need to remember is that at the end of the day, it’s the convenience that the program offers that makes it attractive to Amazon customers. Offer your products with people’s convenience in mind and you’ll never go wrong.