Similar trends have been witnessed in other countries as well. Amazon is one of the companies that caught the trend early. With its membership subscription services, the e-commerce company become an industry giant by attracting 140 million paid members. Amazon did not stop there, however. It launched a subscription-based delivery program, where it partially pays for discounts offered by Amazon sellers.
Today, we will take a closer look at this program that Amazon calls ‘Subscribe and Save,’ and how it allows both consumers and sellers to come out as winners.Subscribe & Save ProgramThe Subscribe & Save program is Amazon’s subscription program that allows customers to have frequently purchased products delivered to them on a regular basis. Each customer can choose the schedule that works for him/her. On top of free regular delivery, subscribers to the program get up to 15% off their purchases. The program applies to consumable consumer products purchased recurrently on a regular basis, such as diapers, cosmetic products, and office supplies. Customers can get what they need at discount prices, while saving the time and energy from manual purchases of the products.Subscribe & Save is Better for SellersYou may ask, “Does Subscribe & Save benefit consumers at the expense of sellers?” And the answer is, “Not at all!” The program is more useful for Amazon sellers, because it offers the following benefits:
- 01Maximizes Product Exposure
A seller, who participates in the program, is automatically listed in Amazon’s “Subscribe & Save” front page, which means free product exposure without additional costs.
- 02Improves Brand Loyalty
The program allows sellers to attract loyal customers and reduce the risk of losing customers. According to a study conducted by Amazon, the program can increase a seller’s purchase conversion rate by up to 80%. In the long term, a seller can secure a loyal customer base without paying extra for advertisements.
- 03Allows for Consistent Profit Forecasts
If a seller can maintain a certain number of subscribers, it can forecast more reliable monthly sales. Such reliable forecasts provide a seller with an insight regarding when to restock its inventory. It also stabilizes a seller’s profits, which allows the seller more freedom to invest its earnings to a wider range of opportunities.
- 04Supports Discounts
A seller can offer discounts up to 10% to Subscribe & Save subscribers. On top of the seller’s discount, Amazon offers additional 5% for customers subscribed to five or more products. It means that a seller can offer additional discounts to customers at Amazon’s expense.
(Source: Amazon Seller Central)
|Product Category||Discount rate for customers subscribing to scheduled delivery of 1 to 4 products||Discount rate for customers subscribing to scheduled delivery of 5 or more products|
|(The delivery date should be the same for all subscribed products)|
|Cosmetics and beauty items||5%||15%|
|Health and baby supplies||5%||15%|
|House tools & home improvement||5%||10%|
(Source: Amazon Seller Central)‘Out of Stock’ is Amazon Seller’s Worst EnemyAn Amazon seller should avoid ‘out of stock’ at all costs. This entails various disadvantages such as reduced exposure due to lower ranking, IPI score decline, and non-eligibility for Prime Day.
Even if you secure multiple subscribers through the Subscribe & Save program, you may receive negative feedbacks due to the inability of delivering products on time. To meet delivery schedules, you need systemic inventory management, and highly capable forwarders who can help you restock an appropriate number of products in time.Cello Square, a Highly Recommended Solution for Amazon SellerSamsung SDS’ forwarding service Cello Square offers special courier services for Amazon FBA. It is highly recommended for Amazon sellers because it offers the fastest international courier option from customs clearance to reception by Amazon.
Cello Square’s maritime transportation services also cover all stages from preliminary consulting to storage at/shipping to local logistics centers, thereby helping sellers address their logistics needs. In addition, you can tract your cargos in real time anywhere, anytime online and on mobile, allowing you a window of opportunity in case of an emergency. You can also avail yourself of dedicated support from experts across different fields, which means you can organize your own logistics team.
Cello Square also offers other unique benefits as well, and its forwarding process is tailor-made for Amazon FBA businesses, which require optimized lead time and tracking.
- 01Guidance for export customs clearance
Provides guidance for products exported to the US, Japan, Europe, and other countries
- 02Real-time shipping status
Capable of tracking cargos throughout the shipping process
- 03Fast shipping for easier restocking
Offers fastest shipping regardless of quantity and useful for FBA urgent restocking
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