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Amazon Australia boosts grocery offering with launch of subscription service

Amazon Australia is further challenging the nation’s biggest supermarkets with the launch today of a subscription service which allows consumers to have household essentials delivered regularly at a 10 per cent discount.

Amazon’s ‘Subscribe and Save’, which has proven popular in international markets, offers free delivery on repeat purchases across pantry food and beverages, pet supplies, beauty and vitamins and supplements.

Customers can sign up for scheduled repeat deliveries on an unlimited number of products that they shop for on a regular basis, with no subscription fee and the option to cancel at any time.

Shoppers also choose the frequency that they want products delivered, starting from a monthly basis to a six monthly basis.

Popular brands including Carman’s, Coca Cola, Fairy, Heinz and Huggies are among the thousands of products offered through the new service.

“Time and money are two of our most precious commodities and ‘Subscribe and Save’ gives Amazon customers a simple way to save on both,” Matt Furlong, country manager of Amazon Australia said in a statement on Wednesday.

“There is nothing worse than running out of your favourite coffee, washing powder, nappies for your newborn, dog food, or toothpaste, and ‘Subscribe and Save’ will help make this a thing of the past.”

From today, eligible products on the e-commerce site will display a ‘Subscribe and Save’ icon. While prices on individual items can fluctuate, customers receive an ongoing 10 per cent discount and free delivery after the initial order.

The most popular categories within the ‘Subscribe and Save’ program in the UK, US and Canada are grocery, household goods, pet supplies and beauty.

Amazon Australia confirmed its intention to launch the platform in Australia, in December 2018. Retail expert and professor at QUT’s business school Gary Mortimer said at the time that the move could impact consumer buying behaviour.

“The Subscribe and Save model is a really smart move from Amazon, and I genuinely think incumbent players should feel nervous…” Mortimer said.

“We know subscription-based models tend to work because it’s very much a ‘set and forget’.”

This story first appeared on sister site, Inside FMCG.

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