Unlock Recurring Revenue with Subscribe and Save on Amazon

Amazon's Subscribe & Save (S&S) program offers customers the convenience of scheduling recurring product deliveries, which saves time and money. The program is an opportunity for sellers to secure repeat sales and build brand loyalty.

The Subscribe & Save program aligns with the growing trend of consumer behavior that prioritizes convenience. Today, shoppers are more inclined to base their purchasing decisions on how easy and fast the purchasing process is, rather than just the product's price. This shift is prompting companies like Amazon to innovate and enhance their services to satisfy the growing demand for convenience.

Let’s break down why Subscribe & Save is a great move for brands on Amazon.

1. What Is Subscribe & Save?

Consumers can begin by shopping eligible Subscribe & Save products and choosing the quantity and delivery schedule that suits them best. Once the subscription is set up, Amazon handles everything else, and shipping is always free. Users have the flexibility to edit, skip, or cancel their subscriptions whenever they want.

There are several key features, such as the ability to automate repeat sales, offer discounts, and customization options. Customers can subscribe to a product for delivery on a weekly or monthly cycle. If they subscribe to receive five or more products in one automatic delivery to the same address, they can save up to 15%. Amazon provides a 5% discount on Subscribe & Save orders of five items or more. Additionally, brands can offer an extra 5% or 10% discount to help boost sales.

To join the Subscribe & Save program, you need to have a selling account in good standing and be a brand owner. Be sure to review the entire eligibility requirements for brands.

2. Benefits of Subscribe & Save for Brands

A. Customer Retention & Lifetime Value 

Subscribe & Save is an excellent strategy for driving repeat purchases without the need for additional advertising expenses. This approach not only helps sellers maintain a steady stream of customers but also fosters predictable, recurring revenue.

B. Improved Forecasting & Inventory Planning

S&S greatly improves forecasting and inventory planning by providing insights into future demand trends. This visibility helps businesses make informed inventory decisions, leading to more efficient stock management. By accurately predicting customer needs, brands can minimize the risks of overstock and stockouts.

C. Boosted Organic Rankings & Conversion Rates

The program also significantly boosts organic rankings and conversion rates. As sales velocity increases, it enhances the Best Seller Rank (BSR) and search visibility on Amazon. This is crucial because products with strong Subscribe & Save metrics tend to receive preferential treatment in search results. This improved visibility can lead to sustained growth and higher sales. 

D. Reduced Advertising Dependency

S&S helps reduce advertising dependency by enabling brands to achieve more efficient Customer Acquisition Costs (CAC) through recurring purchases. This means less reliance on top-of-funnel paid media, lowering overall marketing expenses and fostering a loyal customer base. 

3. Strategies for Maximizing Subscribe & Save Success

A. Discount Optimization

To maximize Subscribe & Save success, you must optimize your discounts. The key is to find the sweet spot between incentivizing customers and protecting margin. You can do this by analyzing customer behavior to find appealing discount levels and test different tiers based on subscription frequency.

B. Inventory Readiness

Next, make sure you consistently have stock available. This is essential to avoid any potential S&S suppression, which can negatively impact your subscription service. Keeping your inventory well-stocked not only enhances customer satisfaction but also helps maintain a steady flow of orders.

C. Marketing Your S&S Option

Here are some tactics to help you drive more subscribers:

• A+ Content: Adding A+ Content to your product detail pages can boost conversion rates, increase sales, reduce negative reviews by showcasing product features, and enhance discoverability when combined with ads, deals, or coupons.
• PPC campaigns: Use ads to boost product visibility in related shopping results, helping customers find your products. Engaging formats can attract new customers, while keywords can connect with shoppers who haven't discovered your brand yet, making sales more efficient.
• Off-Amazon education: Improve your understanding of marketing, pricing strategies, and customer engagement, that can be applied to your S&S offerings to increase its appeal and attract more subscribers.

4. Case Study

Straight Up Growth helped a new brand achieve $2.1 million in revenue on Amazon primarily through the Subscribe & Save program. They gained over 5,000 new Subscribe & Save customers in just one year, leading to recurring revenue. S&S makes advertising costs more profitable since these customers tend to generate 2-4 times the revenue of regular customers. Subscribe & Save is important for sustainable growth on Amazon.

5. Conclusion and Q&A

To wrap things up, it’s clear that Amazon’s Subscribe and Save program is a great opportunity for brands to secure repeat sales and build brand loyalty. By enhancing customer retention and lifetime value, as well as improving organic rankings and conversion rates, it's a no-brainer to integrate this feature into your business.

Get Straight Up Growth to audit your catalog for Subscribe & Save readiness and think about implementing the feature to boost your growth on Amazon!

1. How do I enroll my products in Subscribe & Save on Amazon?

To join Subscribe & Save, your products have to be from a brand that's enrolled in Amazon Brand Registry, and you need to be a Brand Representative. Next, you can list your products in the Amazon store by either creating new product detail pages or matching your offers to existing ones. Learn more. 

2. What kinds of products are best suited for Subscribe & Save?

Products best suited for Amazon Subscribe & Save are consumables or frequently reordered items. Examples include household essentials, beauty products, vitamins, pet supplies, and pantry staples.

3. Do I have to offer a discount for Subscribe & Save?

No, you don't have to offer a discount. Amazon automatically enrolls eligible products at a 0% discount. However, you can choose to offer a 5% or 10% discount, and Amazon may add an additional 5% discount if a customer subscribes to five or more items.

4. Will offering Subscribe & Save hurt my margins?

Offering Subscribe & Save might slightly reduce profit margins due to discounts. However, the increased sales volume from repeat customers and predictable revenue stream can often offset this, ultimately increasing overall profitability. 

5. How can I track the performance of my Subscribe & Save program?
You can use the Subscribe & Save Performance dashboard to track how your S&S business is performing on Amazon. The dashboard shows key metrics to help analyze performance and trends including S&S sales, subscription count, sales by delivery, and more!

6. Can I advertise my Subscribe & Save offer?

Yes, Amazon allows you to create coupons specifically for Subscribe & Save, and any existing promotions will apply to Subscribe & Save purchases. You can also utilize other advertising methods to draw attention to the S&S option for your products.

7. How does Subscribe & Save impact my rankings?

Subscribe & Save can foster brand loyalty and drive sales, which may enhance your visibility and overall sales performance. By attracting more potential customers, the program can also contribute to better rankings on the platform.