Incorporating Shopify Subscriptions into your e-commerce business strategy
Subscriptions offer customers a convenient, personalized, and cost-effective way to purchase desired items regularly, which can transform one-time customers into loyal customers. There are various subscription business models available, each catering to different customer needs and preferences.
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Benefits of subscriptions
Subscriptions can offer predictable revenue, increased customer loyalty, and opportunities for cross-selling and upselling:
- Predictable revenue: Streamline sales forecasting and inventory planning.
- Increase customer loyalty: Repeat customers spend more and are more cost-effective to retain.
- Upsell and cross-sell: Regular engagement makes it easier to personalize experiences and market additional products to customers.
Learn more about Shopify Subscriptions to determine your eligibility and if subscriptions are suitable for your business.
Set up subscriptions
There are two ways to set up subscriptions:
- Choose from Shopify’s collection of checkout-integrated subscription apps.
- Build a custom solution using the subscription API. This option requires a developer.
Learn more about setting up Shopify Subscriptions.
Subscription billing models
Consider one of the following billing models for your subscriptions:
- Pay-as-you-go: Customers pay on an ongoing basis. For example, monthly or bi-weekly.
- Pre-paid: Customers can make a one-time advance payment for a set number of months.
Subscription business model types
Refer to the Shopify blog Unlock Recurring Revenue with a Subscription Business Model to learn more about the benefits of a subscription business model, choosing the right subscription business model, tips for making the subscription business model work for you, and how to start your own subscription business.
| Type | Description | Benefits | Risks |
|---|---|---|---|
| Curation or subscription boxes | The most common subscription business model, which seeks to surprise and delight customers by providing them with new items and highly personalized experiences | High profit potential, provides personalized experiences | High churn, operational complexity |
| Replenishment | Allows consumers to automate the purchase of essential items, offering convenience and cost savings | Higher conversion rates, higher retention rates | Thin margins |
| Access | Subscribers pay a monthly fee to obtain lower prices or members-only perks | Greater value to the customer, bundling opportunities | Greater time investment |