Why you should have a subscription eCommerce website

Why You Should Pick Ecommerce Subscription In 2021

Ecommerce subscriptions are growing tremendously over the past few years. We come to know through the Subscription Trade Association (SUBTA) that there will be a 75% D2C increase in 2023. The Direct to Consumer (D2C) companies or brands will provide subscription services. There are multiple reasons behind this, but the most important one would be the shifts inside consumer behaviour. Nowadays, consumers prefer shopping experiences that are hassle-free, exemplified via perks such as free deliveries.

The subscription services tend to play into the consumer’s desire and preference for convenience. These services are beneficial for all businesses since they provide recurring and reliable revenue. The revenue is vital for succeeding in an e-commerce environment that is rapidly evolving and highly competitive. Ecommerce subscriptions perform excellently in unforeseeable circumstances like the Covid-19 pandemic.

What Is an Ecommerce Subscription?

An e-commerce subscription website is all about being convenient and efficient for both consumers and merchants. For the merchants, it’s a business model that is battled-tested, which generates all the recurring revenue. A company offers ongoing services and products regularly for payment in this model.

And for the consumers, it frees up the shopper to start focusing on meaningful experiences such as spending time with your loved ones. It saves them the trouble of reordering products and remembering to restock the items that they frequently use. Plus, subscription models tend to give promotions, allowing them to be super cost-effective.

Common Ecommerce Subscription Types

There is a multitude of subscription services. And sometimes, the businesses may use one or a combination of the services. The common ones include:

Subscribe & Save

This form is also known as auto-shipping service or replenishment that offers recurring and regular delivery of products to the customers. The deliveries will mostly occur quarterly, monthly, or weekly. This standard practice for the merchants provides a discount for every product.

It incentivizes the customers for subscribing and ensuring that they are receiving the top deals from the market. Some typical products that the “Subscribe & Service” service offers include pet supplies, toiletries, groceries, and beauty products such as concealer.

Membership Boxes

It is also called a subscription box and appeals to the customers by engaging their curiosity. They offer a variety of products to the customers based on their individual preferences. The membership subscription tends to focus on niche products. For instance, Yankee Candle uses the membership boxes for enabling their consumers to obtain their desired fragrances right on their doorsteps.


The membership subscription model provides customers permission to the value, which an organization builds in exchange for the recurring fee. The items that are sold via the organization are usually given at a sheer discount.

It makes the membership tempting to all the consumers. The benefits vary in individual organizations; however, they may include access to conferences and events, professional services, exclusive content, marketing activities, and free shipping.

Ecommerce Subscription Benefits

Many of its benefits tend to be interconnected, allowing them to influence one another. They include:

Recurring & Reliable Revenue

Knowing their runway is crucial for all organizations. Operating a subscription program tends to enhance the brand’s ability for forecasting revenue and sales numbers. Brands lock the customers into buying products for a particular period. In certain cases, it even goes up to a year, creating predictability.

The subscriptions also tend to facilitate improved inventory management. Since the consumers tend to subscribe for longer periods, the businesses possess a greater understanding of the number of products they require for fulfilling orders.

Higher Customer Retention Rate

A subscription program is required for keeping customers hooked on your products. The company will receive more value from their services with loyal shoppers. The longer a buyer is subscribing to your service, the greater will be your brand’s value. With the subscription model, the shoppers tend to spend less money, reduce their stress level, and save time.

Ecommerce subscription also reduces customer churn. Your bottom line will look better with lesser customers churning. Lowering customer churn is the perfect success recipe for every business. You have to understand that returning buyers tend to buy more products and services over time. Plus, the CAC or Customer Acquisition for the brands is increasing every day.

Better Customer Lifetime Value (LTV)

D2C businesses and retailers spend an insane amount of money on customer acquisition. But in reality, about 14.77% of all E-commerce consumers are returning buyers. By using a subscription program, the brands can boost the investment they accumulated by acquiring customers.


Ecommerce subscriptions tend to be a convenient and lower-cost alternative for the consumers to visit brick + mortar stores. For continual growth, the D2C businesses and retailers should consider inserting these services for maximizing their strategies.