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How Retailers Can Benefit From Subscription-Based eCommerce

How Retailers Can Benefit From Subscription-Based eCommerce 

Subscription-based ecommerce can be a very attractive business model for retailers. The key attraction is the increase in customer lifetime value and the reduction in costs of acquisition. 

According to a Royal Mail report, the subscription box market is forecast to grow 72% by 2022 in the UK alone. From subscription boxes to greater sales, this boils down to solid e-commerce practices, such as unique branding, curated customer experiences, etc. 

At Blue Whale Media, our team of Warrington web designers are used to building ecommerce websites for businesses. However, there are many ways in which companies can benefit from subscription ecommerce. 

How could ecommerce businesses offer subscriptions for customers? 

While many subscription ecommerce businesses have chosen this model from the beginning, it’s possible to offer more ecommerce subscription options. If your products or services suit a subscription model, it can make sense to move into this space. It is a smart idea as your customers see less commitment to sign up for a subscription when they arrive monthly. Plus, once the product arrives at the customer’s doorstep, they’re less likely to return them.

Benefits of subscription ecommerce models for businesses

  • Convenience for customers. The appeal for subscribers is that it saves them time and effort if they know items they need or want are arriving regularly. 
  • Convenience for retailers. Subscription models deliver a more predictable income; this means retailers can predict volume and demand much more quickly. 
  • Build relationships with customers. Regular deliveries of subscription products mean that retailers contact customers more often, allowing a relationship to build. 
  • Great for cashflow. Retailers are paid upfront, meaning bank balances are healthier. 
  • Higher retention rates. Customers are committed to regular payments, so they’re less likely to churn. 
  • Faster feedback. With more regular orders, retailers will learn of any issues with products more quickly, enabling them to address those issues as they arise. 

Maintaining customer interest is more of a challenge; some may get bored with products or issues in finding the volume of product that works across a range of customers. 

What can retailers learn from subscription-based ecommerce? 

Even if retailers decide that a subscription model isn’t for them, there are still lessons to learn from this business model and the websites that use them. Subscription ecommerce companies are trying to tackle creative ways to communicate your brand, build buyers’ trust, and encourage purchases, as well as online selling hurdles head-on. One idea is to incorporate repeat purchases without having the full subscription package. This can then be offered as an alternative and perhaps more core convenient option at checkout. 

The more successful subscription businesses work because they focus on a small number of products and continually refine and improve their products and services offerings. Whether you opt for any type of subscription model, all retailers can benefit from focusing on retention and overall customer experience that helps keep customers happy. Reviewing the subscription ecommerce strategies means businesses can improve and create a more engaging customer experience and win more sales.

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