Subscribe & Save has multiple benefits for AMZN, as it increases user purchase frequency and Amazon’s share of wallet within the $285bn consumables (ex fresh) market. Subscribe & Save is also a form of behavior modification, as habitual subscription-based ordering has the potential to alter consumers’ traditional offline shopping behavior and traffic flow. Not surprisingly, the most penetrated categories so far are Grocery (~4%), Beauty (~1%), and Health & Personal Care (~1%).
Subscribe & Save is essentially Amazon’s version of automatic replenishment. It offers users discounted prices on select items (typically sold in bulk) when they choose to have them automatically replenished from Amazon.com at regular, pre-determined intervals (every 1, 2, 3, 4, 5, or 6 months, etc.) (see below). This service