Peaks and troughs in demand can be a real challenge for brands selling on Amazon. It’s makes it almost impossible to plan inventory, forecast revenue, and maintain healthy cash flow. That’s where Amazon’s Subscribe & Save programme comes in, offering brands a powerful way to stabilise revenue by turning one-off shoppers into loyal repeat customers.
Subscribe & Save allows customers to schedule regular deliveries of products they use frequently, from household essentials to beauty items and supplements. For customers it represents effortless shopping – a way to ensure they never run out of the products they use most. But for brands, it’s a chance to build predictable, recurring revenue streams and strengthen customer loyalty. Here’s a quick guide to help you make the most of the opportunities it presents.
Understanding Subscribe & Save
Amazon’s Subscribe & Save programme gives customers the chance to sign up for automatic, recurring deliveries of products they purchase regularly. In return, they usually receive a small discount and the convenience of not having to reorder manually. For brands, Subscribe & Save creates several advantages, including…
- Predictable revenue: Regular, recurring orders help smooth out sales fluctuations
- Customer loyalty: Subscribers are less likely to switch to competitors, fostering long-term relationships
- Higher visibility: Products enrolled in the programme may be prioritised in search results, making them easier for shoppers to find
However, to fully unlock the benefits of Subscribe & Save, brands need to approach it strategically.
Selecting the right products
Not every product is suited to the Subscribe & Save model. Focus on items that customers need to replenish regularly, think vitamins, cleaning supplies, pet food, or skincare products.
Use sales data to identify products that customers already buy frequently and consider how often they’re likely to need a refill. Products with a natural repurchase cycle are more likely to attract subscribers and deliver consistent revenue.
Pricing for profitability
Discounts are part of the appeal of Subscribe & Save for shoppers, but it’s important to protect your margins. Typically, Amazon suggests a discount of 5% to 15% per subscription, but you can set this within a range that makes sense for your business.
Before enrolling a product, calculate the cost implications of offering discounts, including production, fulfilment, and Amazon fees. Ensure that the discount doesn’t erode your profitability, especially when combined with promotional campaigns or advertising spend.
Optimising listings and advertising
Just because a product is in the Subscribe & Save programme doesn’t guarantee success. Your product listings still need to stand out, with clear images, detailed descriptions, and persuasive bullet points that highlight the benefits of subscribing.
Invest in advertising strategies that promote your Subscribe & Save offers. Sponsored Products and Sponsored Brands can be used to drive visibility, while Display ads can remarket to existing customers and remind them of the convenience of subscribing.
Incorporate messaging that highlights the benefits of Subscribe & Save, such as savings and convenience, both in your advertising and on your product detail pages.
Maximising retention
Getting customers to sign up is just the beginning. To truly unlock recurring revenue, focus on retaining subscribers. Monitor your churn rates, the percentage of customers who cancel their subscriptions, and identify ways to improve.
Some tips for reducing churn include…
- Product Quality: Ensure the product consistently meets or exceeds expectations
- Stock Management: Avoid stockouts, which can disrupt subscriptions and drive customers to competitors
- Customer Communication: Use your brand’s packaging and marketing to remind customers of the benefits they’re receiving through Subscribe & Save
Amazon’s Subscribe & Save programme can be a powerful tool for brands looking to build consistent revenue and deepen customer relationships. By selecting the right products, pricing them strategically, and supporting them with effective advertising and retention strategies, you can turn occasional buyers into loyal, repeat customers, all while improving your bottom line.
