Amazon's Subscribe & Save Program has Resulted in a +400% Cancellation Rate for our Company
While there are obvious benefits to the Amazon Subscribe & Save Program for us Sellers, Amazon customers are using the program as a quick way to save 10% or 15% off their first order, and then abruptly cancelling the program after receiving the initial product.
Customers are very savvy. They will make use of work-arounds to shave costs, and the Subscribe & Save Program is being exploited (big time) in a manner that belies the core reason for which the program was developed in the first place.
Customers brag about this on Reddit, boasting about why anyone would NOT check off the Subscribe & Save box when placing initial orders to get the discount because it's so easy to cancel the program. They continue this practice for all subsequent orders. Rinse and repeat.
Because of this issue, our company has experienced an increase of +425% in Cancelled Orders, 92% of which are canceled Subscribe & Save orders. Previously, we had 1 or 2 order cancellations per day. Now we average 9 per day. I would be curious of what percentage of customers that initiate Subscribe & Save cancel after receiving their first discounted order. Based on experience I would estimate this figure to be more than 85%.
The Subscribe & Save program was designed to benefit loyal customers whom repeatedly purchase the same products throughout the year. But, based on our company's metrics and what we're seeing in the market, the vast majority of Subscribe & Save order initiations are cancelled after receiving the initial discount---just another work around to save money for a program that they never intended to use in the first place. While we are ecstatic about our customers who fairly opt into the program , we are disappointed about the bulk customers that exploit the program to save a quick buck. More and more Amazon customers are catching on to this work-around at the expense of Sellers.
LILY SADO INC.
Amazon's Subscribe & Save Program has Resulted in a +400% Cancellation Rate for our Company
While there are obvious benefits to the Amazon Subscribe & Save Program for us Sellers, Amazon customers are using the program as a quick way to save 10% or 15% off their first order, and then abruptly cancelling the program after receiving the initial product.
Customers are very savvy. They will make use of work-arounds to shave costs, and the Subscribe & Save Program is being exploited (big time) in a manner that belies the core reason for which the program was developed in the first place.
Customers brag about this on Reddit, boasting about why anyone would NOT check off the Subscribe & Save box when placing initial orders to get the discount because it's so easy to cancel the program. They continue this practice for all subsequent orders. Rinse and repeat.
Because of this issue, our company has experienced an increase of +425% in Cancelled Orders, 92% of which are canceled Subscribe & Save orders. Previously, we had 1 or 2 order cancellations per day. Now we average 9 per day. I would be curious of what percentage of customers that initiate Subscribe & Save cancel after receiving their first discounted order. Based on experience I would estimate this figure to be more than 85%.
The Subscribe & Save program was designed to benefit loyal customers whom repeatedly purchase the same products throughout the year. But, based on our company's metrics and what we're seeing in the market, the vast majority of Subscribe & Save order initiations are cancelled after receiving the initial discount---just another work around to save money for a program that they never intended to use in the first place. While we are ecstatic about our customers who fairly opt into the program , we are disappointed about the bulk customers that exploit the program to save a quick buck. More and more Amazon customers are catching on to this work-around at the expense of Sellers.
LILY SADO INC.
16 replies
Seller_rI7BZIczK8iAC
Are you sure that cancelling the Subscribe&Save program by a buyer is impacting the Cancellation Rate metrics? It's the customer who cancels not the seller!
I really doubt that this is true.
Dominic_Amazon
Hi @Seller_QDUGNNCrl6QDh,
Dominic from Amazon here, happy to try to help. You are not required to provide seller funded discounts.
You can choose from three base funding options: 0%, 5%, or 10%. Subscribers who receive five or more subscriptions in a delivery reach tiered status, and Amazon will, for a limited time, fund an additional 5% discount. You can update funding and manage your selection on the Manage Products page.
If we enroll your products at 0% base discount plus the Amazon-funded 5% discount, we will continue funding subscriptions with these discounts indefinitely. When the limited-time Amazon discount ends, we will stop automatically enrolling new products.
Best,
Dominic
Seller_AyOVeKNuAQoJl
Can you blame customers for trying to save money? The discount is there and they take it- there is no contract being signed to remain subscribed. Hopefully it drives enough sales to make it worth it, and if not, opt out.
Seller_iKDvjr9hWfML4
I think it depends a great deal on the product. I have products that I order regularly, and once I figure out how often I need them, Subscribe and Save is a great deal. I have others that I order via Subscribe and Save, then realize that I don't need them every month / two months / etc., and cancel.
If cancelled Subscribe & Save orders are costing you profits and/or not increasing your sales, then it is a business decision to stop participating in the program.
And, yes, customers are savvy enough to save 5% or so if they can by checking a box. Employees are savvy enough to do what earns them the most money. Businesses have to make a decision about what behavior to encourage through pricing.
Seller_GSbVBhLQVsri3
I have canceled Subscribe & Save items because some have doubled in price. Not sure if that applies to your items.
Seller_jDBIXSKlN1wEw
Opt out of the Program, I've never made a sale on that thing in my life. Whatever Amazon wants to do, it should never affect Sellers revenue or return rate, let Amazon pay for any discounts they want to give and don't take them back from us.
Seller_0EiTWTPC4Lbig
I think it makes a difference if your product is great or not. We have essentially a 1% cancellation and our S&S for all of our products grows at 3-5% monthly, even after the cancelations.
YMMV, but I think your issue may be more about the product than the program.
Seller_9Uf78DYSZ2lcW
Are your products really ones that lend themselves to being purchased repeatedly on a Monthly basis or a very set schedule basis at least?
The reason you wind up seeing more cancelations from the S&S is that people will make the first purchase that way and then the next month or whenever it comes up again and they realize they don't want/need more of it, they will skip or cancel it. It is better than having them return the product at least.
Seller_kPYn2eaKfbniK
You are still getting the sale. If you are upset about losing the 10-15% on the subscription, raise your price 5-10% to offset this.
Amazon's Subscribe & Save Program has Resulted in a +400% Cancellation Rate for our Company
While there are obvious benefits to the Amazon Subscribe & Save Program for us Sellers, Amazon customers are using the program as a quick way to save 10% or 15% off their first order, and then abruptly cancelling the program after receiving the initial product.
Customers are very savvy. They will make use of work-arounds to shave costs, and the Subscribe & Save Program is being exploited (big time) in a manner that belies the core reason for which the program was developed in the first place.
Customers brag about this on Reddit, boasting about why anyone would NOT check off the Subscribe & Save box when placing initial orders to get the discount because it's so easy to cancel the program. They continue this practice for all subsequent orders. Rinse and repeat.
Because of this issue, our company has experienced an increase of +425% in Cancelled Orders, 92% of which are canceled Subscribe & Save orders. Previously, we had 1 or 2 order cancellations per day. Now we average 9 per day. I would be curious of what percentage of customers that initiate Subscribe & Save cancel after receiving their first discounted order. Based on experience I would estimate this figure to be more than 85%.
The Subscribe & Save program was designed to benefit loyal customers whom repeatedly purchase the same products throughout the year. But, based on our company's metrics and what we're seeing in the market, the vast majority of Subscribe & Save order initiations are cancelled after receiving the initial discount---just another work around to save money for a program that they never intended to use in the first place. While we are ecstatic about our customers who fairly opt into the program , we are disappointed about the bulk customers that exploit the program to save a quick buck. More and more Amazon customers are catching on to this work-around at the expense of Sellers.
LILY SADO INC.
Amazon's Subscribe & Save Program has Resulted in a +400% Cancellation Rate for our Company
While there are obvious benefits to the Amazon Subscribe & Save Program for us Sellers, Amazon customers are using the program as a quick way to save 10% or 15% off their first order, and then abruptly cancelling the program after receiving the initial product.
Customers are very savvy. They will make use of work-arounds to shave costs, and the Subscribe & Save Program is being exploited (big time) in a manner that belies the core reason for which the program was developed in the first place.
Customers brag about this on Reddit, boasting about why anyone would NOT check off the Subscribe & Save box when placing initial orders to get the discount because it's so easy to cancel the program. They continue this practice for all subsequent orders. Rinse and repeat.
Because of this issue, our company has experienced an increase of +425% in Cancelled Orders, 92% of which are canceled Subscribe & Save orders. Previously, we had 1 or 2 order cancellations per day. Now we average 9 per day. I would be curious of what percentage of customers that initiate Subscribe & Save cancel after receiving their first discounted order. Based on experience I would estimate this figure to be more than 85%.
The Subscribe & Save program was designed to benefit loyal customers whom repeatedly purchase the same products throughout the year. But, based on our company's metrics and what we're seeing in the market, the vast majority of Subscribe & Save order initiations are cancelled after receiving the initial discount---just another work around to save money for a program that they never intended to use in the first place. While we are ecstatic about our customers who fairly opt into the program , we are disappointed about the bulk customers that exploit the program to save a quick buck. More and more Amazon customers are catching on to this work-around at the expense of Sellers.
LILY SADO INC.
Amazon's Subscribe & Save Program has Resulted in a +400% Cancellation Rate for our Company
While there are obvious benefits to the Amazon Subscribe & Save Program for us Sellers, Amazon customers are using the program as a quick way to save 10% or 15% off their first order, and then abruptly cancelling the program after receiving the initial product.
Customers are very savvy. They will make use of work-arounds to shave costs, and the Subscribe & Save Program is being exploited (big time) in a manner that belies the core reason for which the program was developed in the first place.
Customers brag about this on Reddit, boasting about why anyone would NOT check off the Subscribe & Save box when placing initial orders to get the discount because it's so easy to cancel the program. They continue this practice for all subsequent orders. Rinse and repeat.
Because of this issue, our company has experienced an increase of +425% in Cancelled Orders, 92% of which are canceled Subscribe & Save orders. Previously, we had 1 or 2 order cancellations per day. Now we average 9 per day. I would be curious of what percentage of customers that initiate Subscribe & Save cancel after receiving their first discounted order. Based on experience I would estimate this figure to be more than 85%.
The Subscribe & Save program was designed to benefit loyal customers whom repeatedly purchase the same products throughout the year. But, based on our company's metrics and what we're seeing in the market, the vast majority of Subscribe & Save order initiations are cancelled after receiving the initial discount---just another work around to save money for a program that they never intended to use in the first place. While we are ecstatic about our customers who fairly opt into the program , we are disappointed about the bulk customers that exploit the program to save a quick buck. More and more Amazon customers are catching on to this work-around at the expense of Sellers.
LILY SADO INC.
16 replies
16 replies
Seller_rI7BZIczK8iAC
Are you sure that cancelling the Subscribe&Save program by a buyer is impacting the Cancellation Rate metrics? It's the customer who cancels not the seller!
I really doubt that this is true.
Dominic_Amazon
Hi @Seller_QDUGNNCrl6QDh,
Dominic from Amazon here, happy to try to help. You are not required to provide seller funded discounts.
You can choose from three base funding options: 0%, 5%, or 10%. Subscribers who receive five or more subscriptions in a delivery reach tiered status, and Amazon will, for a limited time, fund an additional 5% discount. You can update funding and manage your selection on the Manage Products page.
If we enroll your products at 0% base discount plus the Amazon-funded 5% discount, we will continue funding subscriptions with these discounts indefinitely. When the limited-time Amazon discount ends, we will stop automatically enrolling new products.
Best,
Dominic
Seller_AyOVeKNuAQoJl
Can you blame customers for trying to save money? The discount is there and they take it- there is no contract being signed to remain subscribed. Hopefully it drives enough sales to make it worth it, and if not, opt out.
Seller_iKDvjr9hWfML4
I think it depends a great deal on the product. I have products that I order regularly, and once I figure out how often I need them, Subscribe and Save is a great deal. I have others that I order via Subscribe and Save, then realize that I don't need them every month / two months / etc., and cancel.
If cancelled Subscribe & Save orders are costing you profits and/or not increasing your sales, then it is a business decision to stop participating in the program.
And, yes, customers are savvy enough to save 5% or so if they can by checking a box. Employees are savvy enough to do what earns them the most money. Businesses have to make a decision about what behavior to encourage through pricing.
Seller_GSbVBhLQVsri3
I have canceled Subscribe & Save items because some have doubled in price. Not sure if that applies to your items.
Seller_jDBIXSKlN1wEw
Opt out of the Program, I've never made a sale on that thing in my life. Whatever Amazon wants to do, it should never affect Sellers revenue or return rate, let Amazon pay for any discounts they want to give and don't take them back from us.
Seller_0EiTWTPC4Lbig
I think it makes a difference if your product is great or not. We have essentially a 1% cancellation and our S&S for all of our products grows at 3-5% monthly, even after the cancelations.
YMMV, but I think your issue may be more about the product than the program.
Seller_9Uf78DYSZ2lcW
Are your products really ones that lend themselves to being purchased repeatedly on a Monthly basis or a very set schedule basis at least?
The reason you wind up seeing more cancelations from the S&S is that people will make the first purchase that way and then the next month or whenever it comes up again and they realize they don't want/need more of it, they will skip or cancel it. It is better than having them return the product at least.
Seller_kPYn2eaKfbniK
You are still getting the sale. If you are upset about losing the 10-15% on the subscription, raise your price 5-10% to offset this.
Seller_rI7BZIczK8iAC
Are you sure that cancelling the Subscribe&Save program by a buyer is impacting the Cancellation Rate metrics? It's the customer who cancels not the seller!
I really doubt that this is true.
Seller_rI7BZIczK8iAC
Are you sure that cancelling the Subscribe&Save program by a buyer is impacting the Cancellation Rate metrics? It's the customer who cancels not the seller!
I really doubt that this is true.
Dominic_Amazon
Hi @Seller_QDUGNNCrl6QDh,
Dominic from Amazon here, happy to try to help. You are not required to provide seller funded discounts.
You can choose from three base funding options: 0%, 5%, or 10%. Subscribers who receive five or more subscriptions in a delivery reach tiered status, and Amazon will, for a limited time, fund an additional 5% discount. You can update funding and manage your selection on the Manage Products page.
If we enroll your products at 0% base discount plus the Amazon-funded 5% discount, we will continue funding subscriptions with these discounts indefinitely. When the limited-time Amazon discount ends, we will stop automatically enrolling new products.
Best,
Dominic
Dominic_Amazon
Hi @Seller_QDUGNNCrl6QDh,
Dominic from Amazon here, happy to try to help. You are not required to provide seller funded discounts.
You can choose from three base funding options: 0%, 5%, or 10%. Subscribers who receive five or more subscriptions in a delivery reach tiered status, and Amazon will, for a limited time, fund an additional 5% discount. You can update funding and manage your selection on the Manage Products page.
If we enroll your products at 0% base discount plus the Amazon-funded 5% discount, we will continue funding subscriptions with these discounts indefinitely. When the limited-time Amazon discount ends, we will stop automatically enrolling new products.
Best,
Dominic
Seller_AyOVeKNuAQoJl
Can you blame customers for trying to save money? The discount is there and they take it- there is no contract being signed to remain subscribed. Hopefully it drives enough sales to make it worth it, and if not, opt out.
Seller_AyOVeKNuAQoJl
Can you blame customers for trying to save money? The discount is there and they take it- there is no contract being signed to remain subscribed. Hopefully it drives enough sales to make it worth it, and if not, opt out.
Seller_iKDvjr9hWfML4
I think it depends a great deal on the product. I have products that I order regularly, and once I figure out how often I need them, Subscribe and Save is a great deal. I have others that I order via Subscribe and Save, then realize that I don't need them every month / two months / etc., and cancel.
If cancelled Subscribe & Save orders are costing you profits and/or not increasing your sales, then it is a business decision to stop participating in the program.
And, yes, customers are savvy enough to save 5% or so if they can by checking a box. Employees are savvy enough to do what earns them the most money. Businesses have to make a decision about what behavior to encourage through pricing.
Seller_iKDvjr9hWfML4
I think it depends a great deal on the product. I have products that I order regularly, and once I figure out how often I need them, Subscribe and Save is a great deal. I have others that I order via Subscribe and Save, then realize that I don't need them every month / two months / etc., and cancel.
If cancelled Subscribe & Save orders are costing you profits and/or not increasing your sales, then it is a business decision to stop participating in the program.
And, yes, customers are savvy enough to save 5% or so if they can by checking a box. Employees are savvy enough to do what earns them the most money. Businesses have to make a decision about what behavior to encourage through pricing.
Seller_GSbVBhLQVsri3
I have canceled Subscribe & Save items because some have doubled in price. Not sure if that applies to your items.
Seller_GSbVBhLQVsri3
I have canceled Subscribe & Save items because some have doubled in price. Not sure if that applies to your items.
Seller_jDBIXSKlN1wEw
Opt out of the Program, I've never made a sale on that thing in my life. Whatever Amazon wants to do, it should never affect Sellers revenue or return rate, let Amazon pay for any discounts they want to give and don't take them back from us.
Seller_jDBIXSKlN1wEw
Opt out of the Program, I've never made a sale on that thing in my life. Whatever Amazon wants to do, it should never affect Sellers revenue or return rate, let Amazon pay for any discounts they want to give and don't take them back from us.
Seller_0EiTWTPC4Lbig
I think it makes a difference if your product is great or not. We have essentially a 1% cancellation and our S&S for all of our products grows at 3-5% monthly, even after the cancelations.
YMMV, but I think your issue may be more about the product than the program.
Seller_0EiTWTPC4Lbig
I think it makes a difference if your product is great or not. We have essentially a 1% cancellation and our S&S for all of our products grows at 3-5% monthly, even after the cancelations.
YMMV, but I think your issue may be more about the product than the program.
Seller_9Uf78DYSZ2lcW
Are your products really ones that lend themselves to being purchased repeatedly on a Monthly basis or a very set schedule basis at least?
The reason you wind up seeing more cancelations from the S&S is that people will make the first purchase that way and then the next month or whenever it comes up again and they realize they don't want/need more of it, they will skip or cancel it. It is better than having them return the product at least.
Seller_9Uf78DYSZ2lcW
Are your products really ones that lend themselves to being purchased repeatedly on a Monthly basis or a very set schedule basis at least?
The reason you wind up seeing more cancelations from the S&S is that people will make the first purchase that way and then the next month or whenever it comes up again and they realize they don't want/need more of it, they will skip or cancel it. It is better than having them return the product at least.
Seller_kPYn2eaKfbniK
You are still getting the sale. If you are upset about losing the 10-15% on the subscription, raise your price 5-10% to offset this.
Seller_kPYn2eaKfbniK
You are still getting the sale. If you are upset about losing the 10-15% on the subscription, raise your price 5-10% to offset this.
