Never having to go to the store again?
Amazon firmly marched into the subscription economy and charmed modern consumers with their »Subscribe & Save« programme. In addition to lower prices, customers can also enjoy free delivery.
Subscribe & Save is Amazon’s answer to the needs of modern consumers rushing through their daily lives at an ever-faster tempo, which is why they often run out of time, will, and energy to visit shopping centres. With the option to subscribe to a monthly delivery of a plethora of products, it also addresses the somewhat younger consumers, who are starting to get bored of browsing websites for the same products every month. At its core, it brings time and financial savings in shopping for things that each and every one of us will use regularly or even daily, no matter what.
Toilet paper, deodorant, razors, shampoo, toothpaste, eyeshadow, washing-up liquid, milk, popular fizzy drinks, beer, etc. We buy most of these products, and more, regularly and periodically, which more and more retailers are taking note of. In their search for balance somewhere in the cross-section of growing revenues, satisfied customers, and competitive advantages, they are starting to use new business models. Among these, the subscription economy is showing great potential, because its growth is powered by the comfort that »life per month« offers subscribers.
Why go to a shopping centre if you can get everything you need delivered to your home, at a better price?
Amazon is one of the global retailers that best understands the advantages of the subscription economy. The yearly subscription to Amazon Prime, offering free and record-fast delivery of products bought online, is used by over 100 million subscribers. Additionally, Amazon offers an extremely popular service called »Subscribe & Save«, which significantly simplifies renewing the stock of products the buyers use regularly and often.
»Where is the washing detergent? Where did the toothpaste disappear to? Why is there no more beer in the fridge? Surely we can’t be out of nappies?« These are the questions that pop up less and less in the homes of subscribers to Amazon’s »Subscribe & Save« service. This elegant solution allows subscribers to periodically (from once a month to once every six months) receive products they use regularly, which saves them more than just time. Firstly, delivery is free for all subscribers to this Amazon programme, and secondly, all products are cheaper by 5 to 15 percent for subscribers. The discount for certain products can go up to 20 percent for subscribers receiving deliveries of at least five of a certain product each month.
The »Subscribe & Save« programme includes thousands of products that can be found in Amazon’s online store. All subscribers need to do, once they’ve found their desired product, is to choose a suitable delivery interval.
Of course, that can be more complicated than it seems. Customers often find it difficult to estimate how much washing powder they need per month, how much food their pet eats, or how many paper towels they use. Shelves in their cupboards could therefore quickly start to buckle under the weight of too many products delivered each month. But Amazon has a solution for that too. Before shipping each package, they notify the subscriber, who can then adjust or even skip the delivery for that month.
Are You a Typical Consumer?
Life per month is an idea that is becoming increasingly popular among retailers and buyers. The reasons are fairly simple: why go to a shopping centre if you can get everything you need delivered to your home, for a better price?