SnS

 SnS is designed to encourage repeat purchases of replenishable or fast-moving consumer goods (FMCG) - such as household supplies, personal care products, and groceries - by offering customers 5–15% discounts and convenient automatic deliveries at regular intervals (e.g., every month, two months, etc.).

For Amazon, SnS supports its strategy of building customer loyalty, increasing lifetime value (LTV), and improving demand predictability for vendors.

How SnS Works:

1. Customer Enrolment:
   • Shoppers choose eligible items and select their delivery frequency (1–6 months).
   • Discounts are automatically applied at checkout.
2. Automatic Reorders:
   • Amazon schedules shipments automatically before each renewal date.
   • Customers can modify, skip, or cancel subscriptions anytime.
3. Discount Funding:
   • The SnS discount is typically funded by the vendor (Vendor Funded Managed Coupons, VFMC) or Amazon, depending on negotiated terms.

Typical Customer Benefits:

• 5% discount on single-item subscriptions.
• Up to 15% discount when subscribing to five or more items per delivery.
• Free delivery and the ability to skip or modify deliveries easily.

Vendor and Seller Benefits:

• Predictable sales: Builds consistent, recurring demand for replenishable SKUs.
• Customer retention: Increases repurchase frequency and loyalty.
• Inventory planning: Improved forecasting based on subscription volume.
• Visibility boost: SnS ASINs often receive better search placement and “Subscribe & Save” badges.

Amazon Benefits:

• Higher customer lifetime value: Converts one-time buyers into repeat customers.
• Operational efficiency: Easier to plan fulfilment and inventory distribution.
• Category growth: Drives volume in health, beauty, grocery, and household categories.

Eligible Product Types:

• Health supplements and vitamins
• Beauty and skincare
• Household essentials (detergents, paper towels, coffee pods)
• Baby care and pet supplies

Challenges:

• Funding pressure: Discounts reduce vendor margins.
• Stock management: OOS (Out-of-Stock) on SnS items negatively affects customer trust.
• Strict SLAs: Vendors must maintain consistent availability and fulfilment reliability.
• Opt-out churn: Customers can cancel subscriptions anytime, affecting retention forecasts.

Where It’s Managed:

• Vendor Central: Vendors manage SnS enrolment, discounts, and funding via the Subscribe & Save dashboard.
• Seller Central: FBA sellers enrol eligible ASINs and set funding discounts.
• VFMC (Vendor Funded Managed Coupons): Managed by Amazon’s SnS team for discount administration.

Why It Matters:
SnS is a strategic programme for building long-term customer relationships and ensuring recurring revenue stability for Amazon and vendors.
It also helps brands build brand loyalty and visibility through repeat exposure and consistent reordering.

Example:
A personal care brand enrols its shampoo in SnS with a 10% discount.
Customers subscribing for monthly deliveries generate steady sales volume and 25% higher lifetime revenue per customer compared to one-time buyers.

In short:
SnS (Subscribe and Save) is Amazon’s automatic replenishment programme that gives customers recurring delivery discounts while providing vendors with predictable sales, improved retention, and stable demand forecasting.