Amazon to ramp up subscription model

Amazon is to ramp up its subscription based selling model with the expansion of its ‘Subscribe and Save’ service and the launch of a membership scheme to target families.

Amazon to ramp up subscription model.

The online retailer has launched its Amazon Family scheme in the UK in a bid to “save parents time and money” and build its relationship with mums. It offers discounts on a range of products aimed at families with young children and members will receive a monthly email of offers tailored to their shopping habits worth up to £50 a month.

Launch offers for members include a £10 money off voucher, exclusive deals on baby food and childrens shoes and Paddington Bear Kindle books.The service follows the launch of Amazon Prime, a premium service offering unlimited next-day delivery in return for an annual fee, a year ago.

Members of Amazon Family will also receive a free three month Prime subscription.

Amazon is also extending its Subscribe and Save platform, which is currently in Beta mode in the UK. It allows customers to set up regular purchases of fmcg products they buy frequently such as pet food or nappies. Amazon will then automatically ship the items at the prearranged time and date.

Ajay Kavan, vice president of consumables at Amazon, told delegates at the IGD Convention that both mums and the fmcg sector are strategically important for Amazon’s continued growth.

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