Imagine never running out of coffee, skincare, or even pet supplies. Isn’t that wonderful?
In today’s hustling and bustling world, most customers are busier than ever. Trying to strike a balance between work, family, and personal commitments leaves a person with no time for the daily routine, such as shopping or even simply catching up with all your favorite products. Here is how subscription-based eCommerce services will fit in. These items will be delivered to customers’ doorstep regularly with a subscription model, never having to reorder again.
While enterprises prefer custom eCommerce development services for building a subscription-based business, subscription eCommerce platforms could still turn out to be a good start for SMEs. If you also want to implement subscription plans in your eCommerce store, this blog is for you. Here, we will look into the basics of eCommerce subscriptions, types of subscription services, the best eCommerce platforms for subscriptions, and features you should consider while choosing one for your online store.
What is Subscription-Based eCommerce?
eCommerce subscription-based models are business strategies to change the one-time purchase approach into consistent revenue streams. Through such a model, customers receive products or services continuously upon paying a recurring fee, usually monthly or yearly. This approach offers convenience for consumers and predictable income for businesses.
At its core, subscription eCommerce works on customer retention rather than the continuous acquisition of customers. The subscription model builds a long-lasting cycle between brand and consumer, establishing loyalty by constantly offering value. This model can apply to various product categories—from physical goods to digital services.
Fundamentally, this will help companies extract highly valued information about customer preferences that could be used in personalizing customer experiences or even targeted marketing.
A fine example of subscription eCommerce is a gourmet coffee subscription service. Consumers choose the kind of beans they want, under what grind, and delivery frequency. This model guarantees a monthly delivery of the tastiest and freshest, expertly roasted coffees to the doorsteps of coffee lovers.
Types of eCommerce Subscription Models
Consumers are changing the way they shop, and an eCommerce business needs to adapt its eCommerce experience, keeping it engaging.
Convenience is key to delivering great customer experiences, and a subscription model ensures maximum convenience for your customers. Increasingly, more businesses are joining the trend of subscription services. The global subscription eCommerce market is forecasted to reach as high as $904.2 billion by 2026.
When researching subscription eCommerce businesses, you will discover various business models around the globe. However, here will discuss three popular models that most online stores use.
Replenishment Subscription
Replenishment subscriptions imply automatic shipment of essential products to clients at regular intervals. Therefore, this model would work best for any consumer goods used frequently by customers and for which they would consistently need replacement. Through replenishment subscriptions, a business can ensure that customers never run out of their favorite products while fostering brand loyalty.
Basically, these subscriptions include everyday needs like:
- Household items: cleaning supplies, paper products
- Personal care products: razors, toothbrushes, skincare
- Consumables: coffee, pet food, vitamins
The key benefit for consumers is convenience – they won’t have to remember or make trips to the store for these items anymore. For businesses, the model will provide predictable revenue and valuable data on customer usage patterns.
Curation Subscriptions
Curation subscription services offer their customers a personally curated set of goods, often centered around a specific theme or category. Usually, these subscriptions hold an element of surprise, whereby the customer is not entirely sure what they will receive with each shipment. It’s this surprise element and trust placed by the subscriber in the curator’s ability to source products relevant to the person’s tastes.
Common categories for curation subscriptions include:
- Beauty and Skincare products
- Food and beverages
- Books and media
- Fashion accessories
Curation subscription models leverage data and algorithms to increase the value of personalization over time and thereby drive customer satisfaction and retention rates. They have the added advantage of providing great opportunities for brands to expose customers to new products and increase their market reach.
Access Subscriptions
Access subscriptions provide customers with exclusive benefits, content, or services in exchange for a recurring fee. This model is eminently popular in the digital world but might also be applied to physical goods and services. Access subscriptions can create a sense of membership or belonging from the users, which nurtures brand loyalty and a feeling of involvement.
Common kinds of access subscriptions include:
- Streaming music, video, or game platforms;
- Premium content available on websites and apps.
- Access to products before anyone else gets them or early releases
- Membership programs with special perks
Access subscriptions can be an effective way for businesses to monetize digital content or add value to their present product offerings. In any case, they provide opportunities for selling more or upselling to engaged subscribers.
Top 5 Subscription eCommerce Platforms to Consider
There are various eCommerce platforms available to run a subscription-based business. Each option has its own pros and cons.
Some of the most popular options are Shopify, Magento, BigCommerce, WooCommerce, and Podia. So, let’s explore them in detail:
Shopify is among the most popular eCommerce platforms offering various services such as subscription management, online storefronts, shipping support, POS systems, payment processing, and 24/7 customer support.
Features for subscription management:
- Recurring payments
- Acceptance of credit cards, digital payments, and mobile wallets
- PCI compliance
- Customizable billing intervals
- Flexible subscription billing options
These features are accessible through app integration or by using Shopify Subscription APIs to create custom solutions. To build an efficient subscription solution with Shopify Subscription APIs, you can hire Shopify developers.
Pricing:
Shopify’s pricing starts at $39 per month for a basic plan. This plan includes essential business support features like payment processing and an online storefront, making it an excellent option for business owners looking to manage subscriptions efficiently.
Magento (Now Adobe Commerce)
Adobe Commerce is one of the leading open source eCommerce platforms known for its robust features catering to online businesses.
Features for subscription management:
- PCI compliance
- Recurring billing
- Payment integrations
- Subscription management dashboard for customers
- Custom billing intervals
To run a subscription-based business on Adobe Commerce, you’ll need a third-party subscription management extension. Setting up an online store on Adobe Commerce requires technical expertise compared to other platforms. If you aren’t good at coding, you can also consider hiring Magento developers.
Pricing:
While Adobe Commerce is open-source and free to use, additional costs can arise from web development, hosting, and necessary extensions. These expenses are essential to consider when planning to set up your eCommerce store using Adobe Commerce.
BigCommerce is a comprehensive eCommerce platform offering various tools for online businesses. It includes online storefronts, point-of-sale (POS) systems, payment processing, and a mobile app for seamless management.
Features for subscription management:
- Recurring billing
- PCI compliance
- Acceptance of global payments, credit cards, and digital payments
- Supports mobile wallets
- 24/7 support
To utilize subscription management, users need to integrate specific applications from the BigCommerce app store.
Pricing:
The basic plan for BigCommerce costs $29.95 per month. The app store provides 13 options for recurring billing and subscription management software, with prices ranging from free to a one-time fee of $500, plus a monthly fee of $99. Many of these apps also offer custom pricing, which includes a combination of monthly fees and transaction fees, ensuring flexibility for businesses of all sizes.
WooCommerce is a widely used eCommerce platform built on WordPress, which is ideal for businesses aiming to start selling online quickly. It offers a user-friendly interface and can be set up in minutes, making it perfect for quick and easy online store launches.
Features for subscription management:
- Flexible subscription renewals allow charges at different times throughout the month.
- Support for over 25 payment gateways, ensuring a variety of payment options.
- Automatic email templates for transactional and reminder emails, simplifying communication with subscribers.
- Availability of diverse subscription items, catering to various business needs.
These features streamline the management of subscription boxes and help businesses keep track of all payments efficiently. As WooCommerce is open source, you will need to manage the development yourself or you can even hire professional WooCommerce developers.
Pricing:
While WooCommerce itself is free, it requires a WordPress website. Additional costs include hosting, extension fees, and development expenses. Despite these costs, WooCommerce remains a cost-effective solution for businesses looking to manage subscriptions seamlessly.
Podia is a versatile subscription eCommerce platform that provides everything you need to create and sell memberships, digital downloads, online courses, and more. It offers a variety of tools to help you manage your subscriptions effectively.
Features for subscription management:
- Course builder to create and manage online courses
- Product bundles to offer multiple products together at a discounted price
- CRM tools to manage customer relationships efficiently
- Digital downloads to sell eBooks, videos, and other digital content
- Affiliate marketing features to expand your reach through affiliate partnerships
Podia also allows you to create paid communities. In just a few clicks, you can set up a members-only area where subscribers can interact, ask questions, and leave comments, fostering a sense of community.
Pricing:
Podia offers a free plan with a 10% transaction fee on each sale. Paid plans with no transaction fees start at $59 per month.
Features to Look For in a Subscription eCommerce Platform
To ensure the best customer experience in your eCommerce store, you need some powerful features. Apart from the standard features offered by every eCommerce platform, you should consider some exclusive features for your subscription business.
Here are the key features you should look for in your platform:
- All-rounded subscription management: It should have features to create and manage subscription products. Your platform should let you configure and manage such products with ease.
- Automated payment collection: Every efficient subscription platform should automatically collect recurring payments from subscribers, with no intervention required by the business or customers.
- Self-management of subscribers: Subscribers should be able to manage their subscriptions on their own. He or she should be able to cancel, unsubscribe, renew, and track payments at any time for convenience and control.
- Integration with multiple payment gateways: A flexible subscription platform should be able to integrate with a number of payment gateways that give customers choices to select accordingly the methods of payment for flexibility and better customer experience.
- Advanced analytical tools: Any business must have analytics tools to track sales data and know the performance of a product. Advanced analytics can also offer keyword data to help your storefront and product pages rank in search engines.
- Recurring billing and invoicing: For most subscription businesses, one will want to implement recurring billing, where customers agree on a set amount to be self-deducted at regular intervals in exchange for continued service or deliveries of products. Most subscription eCommerce platforms allow for the automation of billing and invoicing, making it easy for the business and the customers.
Because subscription-based eCommerce businesses are trending, there are numerous tools available in the market for managing the subscription strategy.
Whether you are looking for an eCommerce platform or want to develop a completely custom solution by hiring eCommerce developers, you will surely find a solution that fits your needs.
FAQs on eCommerce Platforms for Subscriptions
How can I personalize the subscription experience for each customer?
Personalizing subscriptions involves using customer data to tailor offerings. Implement preference surveys, analyze purchase history, and track engagement to create customized product selections. Offer flexible delivery schedules and personalized communications. Use AI-driven recommendations to suggest relevant add-ons. Allow customers to easily modify their subscriptions, choosing product variations or adjusting quantities. Remember to respect privacy and provide clear opt-out options for data collection and personalized marketing.
How easy is it to manage customer cancellations and returns for subscriptions?
Managing cancellations and returns for subscriptions can be streamlined with the right systems in place. Implement user-friendly self-service portals where customers can easily pause, modify, or cancel subscriptions. Automate refund processes for eligible returns. Use clear communication to set expectations about cancellation policies and return windows. Track reasons for cancellations to identify areas for improvement. Consider offering win-back incentives for canceled subscriptions. With proper planning, these processes can be efficient for both customers and businesses.
What are some strategies to upsell or cross-sell to existing subscribers?
To upsell or cross-sell to subscribers, focus on enhancing their experience. Analyze customer data to identify complementary products or premium upgrades that align with their preferences. Use targeted email campaigns to showcase relevant offerings. Implement a loyalty program with exclusive benefits for higher-tier subscriptions. Offer limited-time add-ons or special editions to create urgency. Use in-app notifications or product inserts to suggest related items. Always ensure additional offerings provide genuine value to maintain customer trust and satisfaction.
Conclusion
Choosing the right eCommerce platform for subscriptions can significantly impact your business’s success. Each platform offers unique features tailored to different needs, from customizable subscription models to robust analytics and seamless integrations with other business tools. Whether you’re just starting or looking to scale, understanding your specific requirements—like billing flexibility, customer management, and inventory tracking is crucial.
The best eCommerce platform for subscriptions depends on your business goals, budget, and technical expertise. By evaluating these factors against each platform’s strengths, you can make an informed decision that supports your growth and enhances customer satisfaction.
If you want to develop a custom online store for subscriptions or upgrade the functionalities of the existing store, you can trust BrainSpate. We are the leaders in the eCommerce development space. Reach out to us and see the difference we can make for your digital business!
