What Exactly Is Amazon FBA Subscribe & Save?
When a customer on Amazon subscribes to order a product, they are provided with the chance to select that specific product and determine the frequency of delivery. Then the people who enroll in the subscription will be able to receive a 5% discount according to the subscription as well. They will be able to get five different subscriptions delivered per month. While doing that, they can also experience up to 15% discounts on complete orders.
What Requirements Are Needed to Be Eligible for Amazon FBA Subscribe & Save?
To make sure that you can get Amazon FBA shipment under the Subscribe and Save program, you need to double-check the requirements and make sure that you are aligning with them. First of all, you need to have a good standing on Amazon. You should also have a feedback rating of over 4.7. You should have been active on Amazon for a period of more than three months.
You can also visit the account settings as a seller and you will be able to notice if this option is available to you or not.
What Products Are Eligible for Amazon FBA Subscribe & Save?
The products that are eligible under Amazon FBA shipment are automatically qualified for Amazon FBA shipments as well. In addition to that, the product in-stock percentage should not be under 85%. The exact discount percentage that you can get depends on the product category and the total number of products that you order. The discount will also be applied to the selling price that you define.
As soon as you register, Amazon FBA will take appropriate measures in order to pick the product, pack it and then deliver it. Therefore, you will not have to go through any hassle to ship the products. All you have to do is to track the progress of your orders through Amazon UK Seller Dashboard.
Pros and Cons of Amazon FBA Subscribe & Save Program
You will be able to plan sales in advance and be sure that you will get the desired profit.
If a customer subscribes to one of your products, then he will probably want to look at other products that you sell under your brand.
- You don’t need to commit yourself to a long-term delivery plan.
If you are working with FBA, repeat orders are no longer your problem. You need to care only about the availability of your goods in stock. Amazon will do all other operations on its own.
- More safety of your business.
Participation in the program will help to make the business more stable, will allow to more accurately assess future profits.
If your margin is too small, a 5% discount can significantly affect your final profit. Consider whether your margin is high enough to cover this discount.
- Regular replenishment of goods.
You must constantly ensure that the stock of goods in the warehouse is at least 85%.
- It will be difficult to hold promotions and provide additional discounts.
Any discount on the goods that you choose to deliver to customers, for example, during the sales period, is automatically applied to those goods that you sell by subscription. Therefore, your total profit may be quite small. Perhaps the sale will take place even at a loss to you.
Is Amazon FBA Subscribe & Save Worth?
If you sell products on Amazon, you should consider Subscribe & Save Program. You will receive additional recurring orders and increase your profits.
On the other hand, if your margin is too low, you will not experience significant benefits from participating in the program. Therefore, you should analyze this option carefully before you will be involved in it.