Subscribe & Save: New Year, New You and Beyond

In the ever-evolving landscape of eCommerce, brands are constantly searching for ways to stand out, build lasting relationships with customers, and of course, boost their bottom line. Enter Amazon’s Subscribe & Save (SnS) program, a powerful tool that can unlock a world of recurring revenue and loyal customer engagement.

What is Subscribe & Save?

Imagine a world where your customers automatically receive their favorite products from you, without lifting a finger. That’s the magic of Subscribe & Save. Customers can choose to receive regular deliveries of eligible products at predefined (weekly, bi-weekly, or monthly) intervals, enjoying convenient replenishment and exclusive discounts. It’s a win-win scenario: shoppers save money and time, while brands secure predictable revenue and foster customer loyalty.

Benefits for Brands, What’s In It for Us?

Joining the Subscribe & Save program isn’t just about convenience for your customers; it’s a strategic move that can significantly benefit your brand:

  • Predictable Revenue: Say goodbye to the feast-or-famine cycle of traditional sales. Subscribe & Save’s recurring orders translate to a steady stream of income, allowing you to forecast revenue with greater accuracy and plan for future growth.
  • Boosted Customer Retention: Once hooked on the ease and savings of automatic deliveries, customers are more likely to stick with your brand. Studies show that Subscribe & Save customers have a 40% higher retention rate compared to non-subscribers.
  • Increased Purchase Frequency: Regular deliveries encourage customers to top up their stock before running out, leading to more frequent purchases and potentially higher order values.
  • Stronger Customer Relationships: The program fosters a sense of trust and commitment between your brand and your customers. By anticipating their needs and offering them a convenient solution, you’re building valuable relationships that translate to brand loyalty.
  • Enhanced Brand Visibility: With your products appearing regularly in your customers’ subscribe & save deliveries, you stay top-of-mind, increasing brand awareness and potentially driving impulse purchases of other items in your catalog.
Making the Most of Subscribe & Save:

Convinced about the program’s potential? Here are some tips to maximize your success:

  • Identify the Right Products: Not all products are created equal for Subscribe & Save. Focus on everyday essentials, consumables, and frequently repurchased items that benefit from automatic replenishment. Think coffee beans, pet food, cleaning supplies, or health and personal care products.
  • Offer Competitive Discounts: Brands can offer discounts ranging from 0-15%. Currently, Amazon will provide an additional 5% off when a consumer has more than 5 products in their cart. This means that a consumer purchasing 5 or more SnS items can save up to 5-20% off their scheduled Subscribe & Save purchase. Hinge Commerce recommends brands set their SnS discount at 10%, as attractive savings are key to enticing loyal customers.
  • Boost Enrollment: Periodically utilize Subscribe & Save Coupons to entice customers to enroll in the program. These coupons are only valid on SnS purchases and provide an additional one-time discount on the purchase. As an example, if your brand’s standard SnS discount is 10% off, during select times your brand can offer a SnS Coupon in which new SnS customers will get an additional 20% off their initial SnS purchase. Subsequent SnS deliveries will only receive the standard SnS discount of 10% off.
  • Ensure Availability: The key to Subscribe & Save success is inventory availability; brands must maintain in-stock levels for products to be eligible for the program. But once enrolled, FBA inventory levels must be monitored and evaluated against both SnS and non-SnS order velocity.  Amazon always prioritizes FBA inventory for SnS orders first. Hinge Commerce recommends using the Subscribe & Save Forecasting reports provided by Amazon to help you navigate this challenge.
  • Personalize the Experience: Go beyond basic deliveries. You can utilize Subscribe & Save Performance Reporting to identify products that you can strategically bundle via hard bundling or virtual bundling.
  • Build Customer Engagement: Don’t just set it and forget it! Keep your subscribers engaged with exclusive offers, product updates, and valuable content related to your products. Utilize Amazon Customer Engagement tools to send emails to your High Spend customers encouraging enrollment in Subscribe & Save, especially when running a SnS Coupon. Also, use DSP and social media posts to nurture these relationships and drive repeat business.
  • Remember: Building a successful Subscribe & Save strategy takes time and effort. Continuously monitor your performance, analyze customer data, and adapt your approach to optimize your program and maximize its potential.
Enrolling Your Products in Amazon Subscribe & Save

Joining Amazon’s Subscribe & Save program can be a game-changer for your brand by boosting recurring revenue and fostering customer loyalty. However, navigating the enrollment process might seem daunting. To make it easier, here’s a comprehensive guide for brands looking to tap into the power of Subscribe & Save:

Eligibility Requirements:

Before diving in, ensure your brand and products meet the key eligibility criteria:

  • Professional Seller Account: You must have a professional seller account in good standing.
  • Amazon Brand Registry: Your brand must be enrolled in Amazon Brand Registry to gain full control over product listings and eligibility for various programs like Subscribe & Save.
  • Fulfillment by Amazon (FBA): Your products must be fulfilled through FBA, meaning Amazon manages storage, packing, and shipping. This guarantees efficient deliveries and a smooth customer experience.
  • Inventory and Performance: Maintain an 85% in-stock rate and a seller feedback rating of 4.7 or higher to demonstrate reliability and commitment to customer satisfaction.

On January 4th, 2024, Amazon announced a new tool to help sellers check to see if their FBA Products are eligible for Subscribe & Save. The new self-service feature offers instant eligibility checks and 24/7 access so you can check your eligibility at any time, and it removes the need to contact support. Previously this could result in delays of up to 5 days while internal Amazon research is being completed by Support.

To use this new feature navigate to the Subscribe & Save Dashboard and search for your ASIN. It’s that simple!

The Enrollment Process:

Once you meet the criteria, enrolling your products is straightforward:

  1. Identify Eligible Products: Analyze your catalog and prioritize everyday essentials, consumables, or frequently repurchased items that benefit from automatic replenishment. Think coffee beans, pet food, cleaning supplies, or health and personal care products.
  2. Navigate Seller Central: Go to your Seller Central account and navigate to the “Subscribe & Save” dashboard.
  3. Select Products: Find and select the eligible products you want to enroll in Subscribe & Save.
  4. Set Discounts: Choose your desired discount rate (0-15%), Hinge recommends 10% to achieve the best enrollment and ROI.
  5. Review and Submit: Double-check all settings and submit your enrollment request.
Additional Tips for Success:
  • Optimize Product Listings: Enhance your product listings with high-quality images, detailed descriptions, and clear information about Subscribe & Save options to attract potential subscribers.
  • Run Promotions: Consider launching Subscribe & Save Coupons to generate initial interest and incentivize customers to try Subscribe & Save with your brand.
  • Monitor and Analyze: Continuously track your performance, analyze customer feedback, and adjust your approach based on data insights. Experiment with different discounts and promotional strategies to find the optimal formula for your brand.
  • Engage with Customers: Don’t just be a silent provider! Offer personalized recommendations, valuable content related to your products, and exclusive deals for your subscribers to deepen engagement and build lasting relationships.
Helpful Resources:

Remember, building a successful program takes time and effort. Hinge Commerce can help with strategic planning, continuous optimization, and managing inventory levels to ensure that your current and future Subscribe & Save Customers never miss a delivery. Subscribe & Save can become a powerful tool for propelling your brand towards e-commerce success.

The Future of Subscribe & Save:

With its proven track record of success and its ever-growing user base, Subscribe & Save is undoubtedly a program worth embracing. As eCommerce continues to evolve, expect to see even more innovative features and integrations within the program. Personalized AI-powered recommendations, dynamic scheduling options, and seamless integration with Amazon-based smart home devices are just a glimpse of what the future holds.

By proactively participating in and strategically leveraging Subscribe & Save, your brand can secure a competitive edge, foster lasting customer relationships, and unlock a sustainable path to recurring revenue. What are you waiting for? Hit the contact us button at the top to schedule a meeting with one of our experts to begin your journey of Subscribe & Save success.

 

 

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