Amazon: ‘Subscribe & Save’ or ‘Bait & Switch’?

The New York Times: What do subscriptions to a newspaper, magazine or Netflix account have in common? Once you sign up, you expect to pay the same rate every month. Yet that’s not the case at Amazon when you subscribe to its Subscribe & Save program, which automatically refills orders for household staples like instant coffee, napkins or trash bags.”

“Buried in the e-commerce company’s terms and conditions is that the Subscribe & Save discount is applied to the price of the item at the time that the order is placed. And on Amazon, prices change frequently — including sometimes rising.”

“In Amazon’s online forums, dozens of people posted about prices of Subscribe & Save items fluctuating, with some calling the program a ‘bait and switch’ subscription scheme. Amazon declined to comment. The company emails people 10 days before a recurring subscription delivery, when it informs customers of a new price of their item so they can change or skip the order. Any sticker shock, analysts said, may be the result of Amazon’s complex pricing system coming into conflict with consumer expectations of a traditional subscription.”

“Sucharita Mulpuru-Kodali, an analyst for Forrester Research who follows Amazon, said the retailer was probably pushing prices up to test how loyal customers are to products and how much more they are willing to pay for them. Yet the sharp price changes on Subscribe & Save items caught her by surprise.” She comments: “It doesn’t seem as customer-friendly as Amazon typically is. That’s what’s unusual.”

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