Tuesday, 25 April 2017

Amazon’s New Subscription Service Should Have You Rethinking Your Products

Subscribe with Amazon

Amazon (NASDAQ:AMZN) just added a new marketplace, Subscribe with Amazon, to help consumers find digital subscriptions, highlighting a potential opportunity for companies to increase ongoing revenue streams.

Subscribe with Amazon

Digital subscriptions can include things like Amazon’s Prime service, music streaming services and even online newspaper subscriptions. And small businesses that offer subscription models to customers can now use Amazon’s marketplace to make their offerings more visible to potential subscribers.

If you don’t offer any subscriptions, it may be time to rethink that. Subscriptions are incredibly popular with consumers right now. And they give businesses the opportunity to offer products or services to customers on an ongoing basis, meaning that repeat business is automatic.

These subscribers are particularly valuable to Amazon. The company’s Prime customers, which get access to video streaming, free shipping and more, tend to spend more than non-subscription customers. In fact, reports have found that 40 percent of Prime customers spend more than $1,000 annually, compared to just 8 percent of non-Prime members.

Subscribe with Amazon is currently taking applicants. The company takes 30 percent of sales for each subscription during the first year. Then its cut goes down to 15 percent. You can also offer special deals just for Amazon shoppers on the platform.

Amazon Photo via Shutterstock

This article, "Amazon’s New Subscription Service Should Have You Rethinking Your Products" was first published on Small Business Trends

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