FBM sellers, you’re in luck. Amazon’s Subscribe & Save has always been a robust program for generating sales, allowing customers to schedule recurring product orders. Until now, it had been exclusive to FBA sellers; on June 27, Amazon announced that Subscribe & Save would open to FBM orders for the first time. If you’re an FBM seller considering Subscribe & Save, we’re here to break down the program and what it means for you.
How it will work
On June 27, Amazon will enroll all FBM sellers’ items in Subscribe & Save at the 0% seller-funded base discount. If a customer has five or more subscriptions scheduled to arrive on the same day, Amazon funds an additional 5% discount.
Subscribe & Save is a popular program because it encourages customers to purchase your products regularly, generating a consistent revenue stream you can rely on. Many categories of products are eligible, including Beauty, Electronics, and Tools & Home Improvement.
Points of consideration
There are, of course, some potential pitfalls to the program. To provide a big-picture perspective before you decide to enroll, here are some pros and cons to consider:
Subscribe & Save is fantastic for sellers prioritizing expanding their customer base and making consistent sales. Participation in the program can be a game-changer, and the decreased profit margins may be worthwhile in the long term. However, if your products have low profit margins, the extra discounts may cost you extra to maintain.
Ultimately, the choice is yours and you should consider your business needs. At AO2, we help many sellers like you make those decisions. If you’re an FBM seller with June 27th on top of mind, contact our team of Amazon experts who can work with you to develop a custom solution today.
