The Future of Subscriptions in eCommerce.

Why you should consider a subscription service for your business.

“By 2023, 75% of businesses that sell DTC are expected to offer subscriptions”

5 years ago – a toilet paper subscription service seemed absurd. Now, not so much.  In the new age of consumer demand, you can find almost any product or service offered in a subscription model, from toothbrushes to tennis balls, almost any item can be offered to the consumer on a subscription model. “You have a 60-70% chance of selling to an existing customer, versus a 5-20% chance of selling to a new prospect.” As consumer demand for fast, easy, and reliable product delivery that requires little to no effort on their behalf continues to grow – so does the subscription model market. 

“The latest projections suggest that by 2025 the global eCommerce subscription market will be worth $246.6 billion.”

“Of the 15% of consumers who receive subscription products, 35% subscribe to three or more services. Diving deeper within this group, 18% of men and 7% of women have six or more subscriptions.”

This week, Leo and Waldo dive deep into the statistics from a recent Shopify article to uncover why a subscription model is the future of eCommerce. 

Topics covered this week include;

• What types of subscription are available?
  • Curation subscriptions (55%) look to surprise and delight.
  • Replenishment subscriptions (32%) focus on “never running out” at a lower cost than retail price.
  • Access subscriptions (13%) are member-only programs that cater to “VIP” perks, early access to new products, and exclusivity. 

• The tools available to eCommerce merchants who wish to implement a subscription model onto their site.
  • Recharge 
  • Bold 
  • Chargify
  • Shopify 

If you have been considering implementing the subscription model to your business here are a few places to start to ensure it is right for you. Keep in mind that subscription allows you to obtain a passive income that shouldn’t fluctuate too much, which will make planning and budgeting for the future a lot simpler.

• Look at your analytics, how many returning customers do you have? How many of these customers are purchasing the same, or similar item repeatedly? 
• Do your competitors offer a subscription service? What to do they offer, is it a discount, free shipping, free product? Do some research and decide what you could implement.

So, are you considering offering a subscription service to your customer?

As Shopify Experts, the team at Zyber know a thing or two about successful subscription models. Get in touch with one of our Digital Strategists today t0 find out how a subscription model can increase your revenue in 2021.