How do Subscribe & Save discounts affect Amazon margin?
Subscribe & Save costs the seller a 5% or 10% discount funded by you plus Amazon's own 5% top-up on qualifying subscribers. The lift comes from repeat purchase behavior and lower ad dependence. In Nova you should track S&S sales, S&S % of sales, and active subs to see if the discount pays back over the cohort.
Jul 26, 2026 · 3 min read
The math per SKU
Your funded discount is either 5% (below a household threshold) or 10% (5+ items shipped to a household). Amazon adds an extra 5% on top from its side at higher tiers. Your gross margin drops by the funded percentage; your PPC and refund rate usually drop too on subscribed units.
What Nova tracks
Nova tracks 3 S&S data points: S&S sales, S&S % of sales, and active subs. That is enough to see whether the discount is winning repeat customers or just discounting one-time buyers. Nova does not model campaign-level PPC or channel-level cash flow.
Frequently asked questions
Do I have to enroll SKUs manually?
Yes. You enroll each ASIN in S&S and pick the funded discount tier.
Does S&S guarantee repeat sales?
No. Subscribers can cancel any time. Track active subs as a health metric.
Is S&S worth it for a $10 SKU?
Often yes if repeat purchase is real. Model it on 3 months of data before deciding.
See this in Nova
Nova surfaces this metric per SKU so you can act before your next monthly close catches it.
Try Nova free for 14 daysRelated questions
What is a good net profit margin on Amazon FBA?
A healthy Amazon FBA net profit margin sits between 15% and 25% after fees, COGS, PPC, and refunds. Under 10% usually signals hidden fees or overspending on ads. Established brands with private-label pricing power can hold 25% or more, while resellers and wholesalers typically operate closer to 10% to 15%.
How do I calculate profit per unit on Amazon?
Profit per unit on Amazon equals sale price minus referral fee, FBA fulfilment fee, per-unit COGS, allocated ad spend, and a refund reserve. A quick formula: Profit/unit = Price - (Referral% x Price) - FBA fee - COGS - (Ad spend / units sold) - (Refund rate x Price).
What is the reorder point formula for Amazon FBA?
Reorder point = (average daily sales x lead time in days) + safety stock. Lead time includes production plus transit plus FBA check-in. Safety stock covers demand and lead-time variability. If any of those numbers is wrong, you either stock out or bury cash in overstock.