April 29, 2019

Amazon FBA Subscribe & Save Program

The FBA Subscribe and Save program was introduced by Amazon back in 2007. It provides the Amazon customers with the opportunity to sign up for ordinary delivery of the products at a discounted price. In addition to that, they will be able to enjoy free shipping as well.

If you are an FBA seller on Amazon, you will be able to apply to the FBA Subscribe & Save program. But before you do it, it is important for you to have a clear understanding about what this program is all about. Then you will be able to make an informed decision and overcome expected issues.

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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 to the subscription will be able to receive a 5% discount according to the subscription as well. They will be able to get five different subscription delivered per month. While doing that, they can also experience up to 15% discounts on the 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 on the selling price that you define.

As soon as you register, FBA will take appropriate measures in order to pick the product, pack it and then deliver to you. Therefore, you will not have to go through any hassle to get the products delivered to your doorstep.  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

Pros:

  • Regular sales.

You will be able to plan sales in advance and be sure that you will get the desired profit.

  • Advertise your brand.

If a customer subscribes to one of your products, then he will most likely 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 make the business more stable, will allow to more accurately assess future profits.

Cons:

  • Small profit.

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%.

  • You 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?

Now you must be wondering whether Amazon FBA Subscribe & Save is really worth to try or not. If you are a person who purchases your essentials on Amazon on a regular basis, this can be considered as one of the best opportunities available for you to consider. For example, you will come across the need to get some of the items on a regular basis. Dish soap, toilet paper and toothpaste are perfect examples for such products. Now you can order them all through the Amazon FBA Subscribe & Save program. This will help you to get them delivered without any hassle.