Optimizing Amazon Vendor Agreements and Pricing
Transcription
The subscribe and save program for consumers allows them to sign up for systematic deliveries of those products that they use often for which they also receive discounts. And for your shipping for a vendor, this means you would need to agree to certain terms to have your products eligible for this program.
show moreThere are two types of subscribe and save orders that consumers can engage. Sign up orders for the initial order placed and replenishment orders for the follow up orders. These are automatically generated by Amazon based on the frequency and quantities set by the consumer as a vendor or a fulfillment by Amazon supplier.
You can apply for this program to see whether your products are eligible for.
If you are eligible, you can go to your account settings on vendor central, under the settings tab and account management to enable your participation in the subscribe and save program, or you can contact your buyer directly. If you cannot find the option to enable your participation in subscribe and save in your account management settings, then you are not eligible for the program.
If you do become eligible, this option will automatically be enabled in your settings. And you will be notified via email by Amazon or on your vendor, central dashboard homepage, under recommendations, Amazon bases, its eligibility criteria on your sales history, operational performance metrics, et cetera, in order for you to be able to part.
You must be selling to Amazon via fulfillment by Amazon and not direct fulfillment. You must be in good standing with Amazon. Have a feedback rating of 4.7 or higher and have been active for longer than three months. Your products must have an in stock percentage greater than 85% for eligible offers the subscribe and save discount is applied to your price for the product on the day, the order is placed.
The subscribe and save discounts range from 5% to 15% on most products and up to 20% on selected items, such as diapers. The discount varies depending on the number of products, the customer subscribes to customers used to be able to unlock extra savings on eligible subscriptions when they subscribe to five or more products from any vendor, not just your product.
To be delivered on the same day to the same address. Now, sellers can choose to offer a 5% or 10% discount immediately to customers who have up to four subscriptions. However, once a customer tiers up to five subscriptions, Amazon will fund the extra 5% discount for a total of 10% or 15% discount offered to the customer.
The decision on whether to offer 5% or 10% discount upfront should be made with data while you are likely to see an increase in subscribers with a deeper discount, you’ll need to determine whether the margin erosion is worth the increase sales. The discount will be calculated before other discounts, except for any deal of the day office on your products.
You fund the subscribe and save customer discount from your monthly payments from Amazon, and only on the products enrolled in the program, any coupons or other promotions you offer also apply to your subscribe and save products. For example, if you run a promotion, offering a 20% discount on a product that is also available through subscribe and save, that discount will be added to existing subscription.
And will result in a total customer discount greater than 20% for subscriptions. Subscribe and save is not currently offered for media products, to register, click on the contact, ask button in your vendor support center, select promotions and marketing, then subscribe and save and request the agreements for enrollment. Once a funding agreement is signed. All the products in your catalog that shipped to Amazon fulfillment centers will be evaluated weekly based on a variety of criteria, including repeat purchase relevancy, operational and profitability metrics.
Once products are enrolled in the program, the subscribe and save buy box will be enabled on your detail page. Remember that the discount applies to the selling price that you set for the products you offer as subscription. And is deducted from your revenue. Once a customer is registered for the program, Amazon will pick pack and ship your subscribe and save orders for you.
For vendors. This percentage is normally calculated for the month and deducted from a remittance and the following month, it can also be negotiated as a starting percent of 5% per as, and only if you are a vendor, but we recommend you discuss this with your buyer initially.