UPDATED 19:02 EDT / APRIL 24 2017

INFRA

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

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