BLOG: Retail
7 Min Read | September, 2025
Why Subscribe & Save matters for 1P vendors
For replenishable categories, growth is not only about the next click—it is about securing the second, third, and tenth order with minimal friction. Amazon’s Subscribe & Save (SnS) program converts repeat intent into scheduled revenue, offering a powerful lever to stabilize demand across seasons. Shoppers benefit from predictable deliveries and savings, Amazon benefits from consolidated shipments, and 1P vendors gain more forecastable reorders.
It further promotes customer loyalty / retention and thus also promotes the corresponding brand loyalty. The initial investments in advertising thus become loyalty customers. This is the last step in the customer journey. Another advantage is that the average revenue per customer is up to 2-4 times higher for subscription customers.
How shoppers use Subscribe & Save
Shoppers can sign up for recurring deliveries on eligible items, selecting a delivery frequency that ranges from every two weeks to every six months. Discounts typically fall between 5% and 15%, with some categories offering up to 20%. An additional 15% discount is unlocked when households have five or more active subscriptions delivered to the same address. This predictable saving creates a strong incentive for loyalty and repeat orders.
Although the subscription model can be terminated by the end customer directly after the first delivery, it has been shown that the majority of end customers place 2+ more orders via the subscription model.
Starting Subscribe & Save as a 1P vendor
Before launching Subscribe & Save, 1P vendors need to ensure their products and operations meet Amazon’s requirements. There are three key areas to focus on:
Product Eligibility
Products should ensure the following criteria, so customers have consistent access and build trust in the subscription model:
- Maintain an in-stock rate of at least 90% over the trailing 28 days.
- Ensure the product is not in a restricted category.
- Keep listed price below $200.
- Confirm the offer is continuously buyable.
Operational Readiness
The most important factor for 1P vendors is maintaining sufficient inventory buffers to avoid stock-outs. Missed shipments can lead to canceled subscriptions and increased churn, directly undermining customer retention.
Activation & Monitoring
Eligible items are often automatically enrolled with a 0% base discount, which can be adjusted. Enrollment status can be tracked via the Subscribe & Save dashboard in Vendor Central or by coordinating with your Vendor Manager or AVS. Continuous monitoring ensures that eligible SKUs remain active and profitable.
Choosing the right funding model for Subscribe & Save
Amazon offers two main funding models for Subscribe & Save:
Flex Agreement reimburses Amazon for the exact discount redeemed by each customer. This ensures spend aligns with actual redemptions but carries unlimited exposure. It is best suited for vendors with experience and reliable performance data on their SKUs.
Fixed Accrual allows vendors to cap their exposure by funding a fixed percentage of net sales for a given term. If redemption rates exceed the accrual, Amazon covers the overage. This option provides predictability, especially useful for pilots on new SKUs or categories.
Recommendation: Start with Fixed Accrual during an 8-12 week pilot to cap risk. Once redemption and retention patterns are clear, evaluate a move to Flex for more precise alignment between spend and customer uptake. During annual vendor negotiations, these terms can often be revisited to optimize long-term cost efficiency.
How to accelerate sign-ups without eroding margins
Vendor Powered Vouchers (VPVs) can be used to drive first-time sign-ups or re-engage lapsed subscribers. However, because promotions can stack with SnS discounts, careful modeling of the effective markdown is essential. VPVs should be deployed selectively, such as for new product launches, seasonal pushes, or churn reactivation campaigns, rather than being always-on.
Additional recommendations to further drive subscription sign-ups and completions include the integration of visual references in Amazon gallery images (see Coca-Cola as an example), the creation of a dedicated brand store page, and clear communication of the benefits associated with a subscription (e.g., Bears with Benefit, Coca-Cola).
Coca cola Brand Store / Bears with Benefit
In addition, the subscription savings advantage (SaS) should be prominently highlighted through Amazon Ads campaigns. Corresponding DSP activities can also be leveraged to reach customers outside of Amazon and convert them into loyal subscribers within the Amazon ecosystem. See Here
Measuring performance in Vendor Central
Amazon provides a Subscribe & Save dashboard in Vendor Central with account- and ASIN-level insights. To run a disciplined program, vendors should monitor three areas consistently:
- Subscription Revenue & Retention: Track revenue share from SnS, active subscriptions, and retention benchmarks (around 90% at 30 days, 75% at 90 days). Use category benchmarks only as directional guidance.
- Coupon and Discount Effectiveness: Evaluate sign-ups driven by discounts and VPVs, and limit ongoing dependency on coupons. The use of SaS coupons is particularly recommended for Tentpole events in order to bring a large new customer group into the subscription model. It has been shown that subscriptions rise sharply at deal events in particular and then remain at a stable level for a longer period of time.
- Stock Health: Monitor revenue lost due to out-of-stock events. Rising OOS-driven cancellations are an early churn warning.
Weekly or monthly reviews of these KPIs ensure vendors can identify risks early and make adjustments in funding, inventory, or promotion strategy.
Finding the right funding level
There is no universal funding rate for Subscribe & Save. The right level depends on category economics, price point, and operational reliability. A best practice is to start with a focused pilot of 8-12 weeks on a small number of predictable SKUs, then expand once the unit economics are proven.
For many vendors, Subscribe & Save can consistently increase revenue by locking in repeat orders. However, margin and stock availability must support this growth. A discount that is too aggressive without sufficient inventory buffers can erode profitability and damage customer trust. Vendors should aim for a balanced discount tier that boosts conversion while protecting margins, supported by reliable forecasting and supply planning.
Building a successful launch plan
A structured approach is key to success with Subscribe & Save. Five practical steps include:
- Select the right ASINs: Focus on consumables or SKUs with high repeat intent.
- Choose the right funding model: Start with Flex Accrual for capped risk, then consider Fix for margin optimization.
- Set discounts and buffers: Align with Amazon’s discount tiers and ensure inventory readiness.
- Communicate SaS via Content Strategy – Gallery Images & Brandstore Side
- Use VPVs strategically: Deploy time-boxed coupons for activation or reactivation, not as a permanent lever.
- Track KPIs consistently: Monitor SnS penetration, retention, churn, and coupon dependency.
- Expande Advertising Activities and push Subscribers to Amazon via DSP Campaign Set-Up
Knowing when Subscribe & Save is successful
Success with Subscribe & Save is not just about growing subscriber numbers. A healthy program can be identified by several clear indicators:
- An increasing share of revenue from SnS across enrolled ASINs.
- Stable retention rates near 30- and 90-day benchmarks for your category.
- Coupons used episodically, not permanently.
- A declining trend in OOS-driven cancellations as forecasting improves.
Vendors should also proactively manage program risks to protect long-term value. For example, when retiring SKUs, coordinate with your Vendor Manager or AVS to migrate subscribers to successor products. Existing subscribers continue deliveries even if you lose the Buy Box, but new sign-ups will follow current Buy Box ownership. Additionally, Amazon may initially self-fund small discounts but later request vendors to take over. Staying on top of these shifts safeguards profitability.
Advanced vendors also compare margin outcomes before and after introducing SnS to confirm sustainable profitability. In practice, success means more predictable recurring revenue that strengthens customer loyalty while protecting long-term margins.
Key takeaways for 1P vendors
- Start with product eligibility, operational readiness, and continuous monitoring to ensure SnS success.
- Choose funding models wisely: pilot with Flex Accrual, then refine with Fix once patterns emerge.
- Use coupons selectively to activate or re-engage subscribers without eroding margins.
- Track performance regularly–focus on retention, coupon impact, and OOS-driven churn.
- Protect long-term value by planning end-of-life transitions and staying on top of Amazon’s funding shifts.
Success is measured not only in subscriber growth but also in sustainable profitability and reduced churn.
How CATAPULT can support your Subscribe & Save strategy
While Amazon’s dashboard provides a starting point, most 1P vendors struggle to connect Subscribe & Save funding decisions directly to profitability, retention, and inventory. CATAPULT addresses this by integrating retail analytics, digital shelf insights, and media performance into one view. We provide deep visibility into stock levels and profitability–two critical factors when setting up SnS successfully.
With CATAPULT, vendors can:
- Link discount and coupon strategies to overall profitability instead of surface-level KPIs.
- Monitor stock health to ensure sufficient buffers and prevent OOS-driven churn.
- Gain holistic insights by combining retail, media, and digital shelf data into one unified platform.
Subscribe & Save has the potential to be a powerful growth lever–but only if managed with precision. CATAPULT enables 1P vendors to navigate Amazon’s complexity with confidence, turning subscription mechanics into a sustainable source of recurring revenue.
Check out our modules here: CATAPULT for Amazon.
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