Subscribe and Save: How to Make the Most of Amazon’s Program

Frequent Amazon shoppers already know that using the Subscribe and Save program for recurring orders of essential goods can save them up to 40%.

In a win-win approach, there are evident advantages for both Amazon and sellers. The marketplace is constantly dealing with increasing competition in the retail market and understands that customer loyalty is more important than ever.

One of Amazon’s many strategies to boost buyer loyalty is precisely the Subscribe and Save recurring order program.

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How Subscribe and Save Works and Why It’s Worth It

The mechanism is simple:

• Within the Subscribe and Save storefronts, you can choose from thousands of eligible items. Simply select the dedicated option on the product page.
• Once you’ve chosen the product, you’ll need to select the quantity and delivery frequency. There are no fees charged, and you can cancel your purchases at any time.
• The benefits are significant. For 1-2 subscriptions, costs can be reduced by up to 10%. If you receive at least 3 subscriptions in one delivery, prices are reduced by up to 15%.

The program has steadily expanded in recent months, and in the USA—one of the most receptive markets to this model—23% of Amazon customers had at least one active subscription.

A recent report from Consumer Intelligence Research Partners (CIRP) highlights the continuous growth of the program. It also provides useful insights into how Subscribe and Save impacts customer loyalty and spending habits:

• Customers benefit from discounts ranging from 5% to 10% on recurring orders. Some promotions offer up to 40% off for new subscriptions.
• Customers who join this program are very valuable to Amazon sellers. They spend more money overall on the platform beyond their active subscriptions.
• The program strengthens customer loyalty. It is therefore a key part of Amazon’s growth strategy in an increasingly competitive retail market.

>>> You can also read our Practical Guide to Amazon’s Sales Register.  <<<

Why Do Customers Cancel Their Subscriptions?

The study also looked into why customers sometimes cancel their subscriptions (which happens in about 1 in 10 cases per year).

The most frequent reasons for canceling Subscribe and Save orders include:

• Price increases
• Excess inventory
• Personal financial conditions

However, it is interesting to note that even those who cancel their subscriptions remain important Amazon shoppers, with higher spending volumes than those who have never subscribed.

>>> Read our article: Innovative Packaging – Amazon’s New Solutions for the Future of Packaging. <<<

How Amazon Customers Use the Subscribe and Save Program

As we have seen, Amazon’s Subscribe and Save feature allows customers to:

• Schedule recurring deliveries of essential everyday items
• Take advantage of exclusive discounts
• Use free shipping

Although this is not the focus of our discussion, it is worth noting how easy it is for customers to subscribe to the program.

All they need to do is:

Open the Amazon app and log into their account

• Search for the desired product
• Tap Subscribe and Save on the product page
• Select a delivery frequency, with options ranging from one month to six months
• Choose the shipping address and payment method
• Check the order details, including the applied discount, and confirm the subscription

Once subscribed, managing the subscription is very simple.

In fact, you simply need to go to your account, select the subscribed items, and then manage the delivery frequency, pause shipments, or cancel subscriptions at any time.

How the Subscribe and Save Program Works for Sellers

Things are slightly more complicated for sellers, to whom this article is addressed.

In fact, seller participation in Subscribe and Save is not automatic. Amazon has established specific eligibility requirements, which include:

• Order history
• Warehouse fees
• Sales performance
• Product category
• Average selling price

Not all Amazon sellers are eligible for the program. The simplest way to check eligibility is to see if the option is available in your account settings.

Given the high number of Amazon requirements for program eligibility, if you sell Subscribe and Save-eligible items but do not have access to the option, it’s best to contact Seller Support.

Competitors Threaten Amazon’s Position

With the features outlined above, Amazon’s Subscribe and Save program has long been a useful element for repeat purchases.

However, Amazon’s leading market position is not unshakable and could soon face new competition from an unexpected source in TikTok, which with its TikTok Shop is experimenting with a subscription-based purchasing feature that allows users to receive recurring deliveries of products like snacks and vitamins at a discount.

The new functionality of TikTok Shop essentially mirrors the well-known Subscribe and Save program from Amazon, attracting users with recurring purchases at discounted prices. By doing so, sellers who trade on TikTok will be able to benefit from more predictable revenues and better inventory management: appealing elements that many sellers must contend with, given the fluctuation in demand for viral videos.

Currently in the testing phase, the feature is not yet widely available, but early adopters believe it could hinder Amazon’s leadership position, with TikTok – increasingly focused on e-commerce – ending up becoming a serious competitor to Amazon in the subscription market, particularly for impulse and trend-driven products.

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What Does This Mean for Amazon?

Let’s conclude this brief analysis by remembering that while Amazon’s Subscribe and Save program has long been a benchmark for customer loyalty on Amazon, offering convenience and discounts on repeat orders, the future may hold some new developments.

If TikTok were to successfully integrate subscriptions into its shopping experience, it could attract some customers away from Amazon and, in particular, those who already use the app for product discovery.

In short, even though Amazon remains by far the dominant e-commerce platform in the international market, the possibility that a new player may enter the market should not be underestimated. In this sense, TikTok’s ability to turn viral content into immediate sales represents a challenge that could reshape the way brands approach subscription-based selling.

How Amazon Sellers Can Strategically Use Subscribe and Save

At this point, we can return to the main topic of our discussion. So, let’s ask ourselves what Amazon sellers can do to maximize their revenues with the Subscribe and Save program.

Clearly, with TikTok and other players testing a subscription purchasing feature, Amazon sellers must refine their strategy on Subscribe and Save to remain competitive. But how?

There are numerous strategies that can be implemented. And even if not all of them will be equally successful for every seller, it is still worth evaluating their practical effectiveness on your account:

• Offer discounts to increase subscriptions. A 10% discount on Subscribe and Save can be combined with a 15% coupon provided to first-time buyers.
•  Retain customers with competitive prices. Competitive pricing attracts and retains subscribers and reduces the likelihood that they will switch to competitors.
• Increase product visibility. Subscribe and Save items often receive additional exposure on Amazon, increasing conversions.
• Do cross-selling for subscribers. Customers who subscribe to one item are more likely to purchase related products from the same brand!