Amazon launches a marketplace for third-party subscription services
Amazon.com Inc. announced today that it will be launching a new digital marketplace that will allow other businesses to sell their subscription services directly to Amazon users.
According to Amazon, its new “Subscribe with Amazon” program gives businesses access to millions of potential subscribers, many of whom are already accustomed to paying for digital subscription services such as Amazon Prime. Subscribe with Amazon will also simplify the subscription process for users, as they can simply use their Amazon account and payment methods rather than having to register for each subscription separately.
Since Amazon vets each service before it can be added to the new marketplace, businesses that are interested in offering their subscriptions through Amazon must first apply for access. The marketplace already boasts a number of major partners, including SlingTV, Disney Story Central, Dropbox, LegalZoom, The Wall Street Journal, Chicago Tribune, The New Yorker and others.
Businesses will earn 70 percent of each subscription transaction for a customer’s first year using their service, with the remaining cut going to Amazon. After a user has been a subscriber for a year, businesses will earn 85 percent from each of their transactions. Amazon offers an API that allows businesses to track orders and updates from the marketplace.
In addition to simplifying the subscription process, Amazon said, its marketplace can offer businesses increased visibility for their services in a few different ways. First, each subscription gets its own detailed marketplace page, which comes with Amazon’s automated marketing widgets. Subscriptions can also reach more users by getting featured on the Subscribe with Amazon storefront, and Amazon says that services could be recommended to individual users based on their purchase history. Finally, businesses can offer special discounts for Prime subscribers.
“Over the years, Amazon has gained extensive experience in the memberships and subscriptions space, innovating across programs like Prime and Kindle Unlimited,” said Lovina McMurchy, general manager of Subscribe with Amazon. “Today, we’re excited to extend our selection by offering subscription businesses a self-service way to make their subscriptions available to millions of Amazon customers.”
Image: Amazon
Since you’re here …
… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.
If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.