VFMC

VFMC is a specialised promotional mechanism used within Amazon’s Subscribe and Save (SnS) ecosystem.
These coupons provide customers with additional discounts beyond the standard SnS percentage, encouraging trial, repeat purchase, and long term subscription growth.

The key difference from regular coupons is that VFMCs are created, scheduled, and optimised by Amazon, while the vendor supplies the funding.

How VFMC works:

• Vendor agrees to fund a coupon discount (percentage or fixed amount)
• Amazon’s SnS team plans the promotion based on demand, seasonality, and customer behaviour
• Coupons appear on PDPs and SnS landing pages
• Funding is charged to the vendor based on redemptions

Benefits for vendors:

• Increased subscription enrolments
• Higher lifetime value of SnS customers
• Stronger visibility in replenishable categories
• Ability to drive volume without creating new listings
• Amazon handles operational setup and optimisation

Benefits for Amazon:

• Greater SnS adoption
• Higher retention in consumable categories
• More predictable replenishment cycles

Where VFMC is most effective:

• replenishable consumables (household, grocery, beauty, pets)
• ASINs with high Pre-SnS traffic but low subscription conversion
• new launches that need accelerated repeat purchase behaviour

What vendors should monitor:

• coupon redemption cost vs margin
• incremental vs subsidised sales
• customer repeat rate post redemption
• long term subscriber retention

Example:
A vendor funds a 15 percent VFMC on a top selling detergent.
Amazon’s SnS team activates the coupon across PDP and subscription surfaces.
Subscription enrolments increase by 40 percent during the promotion.

Why It Matters:
VFMC helps vendors scale recurring revenue in categories where repeat purchase is essential and subscription adoption drives long term success.

In short:
VFMC (Vendor Funded Managed Coupons) are vendor funded coupon promotions managed by Amazon’s Subscribe and Save team to increase subscription adoption and repeat purchases.