The business model in the eCommerce subscription model in which a company offers regular service to the customers in exchange for payment from them. The subscription model is not something new, it is becoming popular in every industry, be it entertainment, food or fashion. Even the eCommerce industry is not left untouched from this subscription model.
Different Types of Subscription Service
As you know, different companies are known for offering different types of subscription services based on various factors such as target industry, industry, etc.
Replenishment Subscription Service
This service of subscription ecommerce platform offers regular and recurring delivery of the consumable products to consumers. Products like toiletries, food, groceries, razors, etc. are the products that are provided in this manner.
Access Subscription Service
In this service, a customer needs to purchase the membership to access the company’s products. Mostly, a hefty discount is offered to the customer so that they can buy the product and membership.
Curation Subscription Service
In this service, it offers the recipients the collection of products keeping in mind their unique taste and needs. Say for example; a clothing store sends its subscriber the monthly selection of latest clothing and fashion items.
Benefits of Using Subscription Ecommerce Platform
By using subscription billing platforms, not only the revenue of the business enhances but also the number of customers also increases. Other benefits that you may enjoy by using the subscription eCommerce platform are:
Retention Increases
The best eCommerce subscription service is one that can retain the customers easily every time. By subscribing to such services, customers can be sure to receive more and more valuable and trustworthy services.
Enhances the Forecasting
If you are running a subscription service, then it can improve your ability to forecast the revenue number as well as future sales. Your business will have those customers too who will subscribe to your service from a few months in advance. This can be a guarantee for your business that you will have revenue coming around until the period of time. You can even predict the inventory of your business.
Engagement Opportunities
If your customer is subscribing to one of your business services, then it means you have a good opportunity in engaging with them during the subscription period. The brand has the opportunity to engage with the customer and knows their suggestion and reviews about the services offered by your brand.
Customer Relationship Management
If you have locked your customer in the subscription, then you can keep them on board for the complete subscription time period. You will have a large number of resources that can help you in growing your business.
Components to Take Recurring Payment
A shopping cart platform, the best recurring payment system, and a payment gateway are the three things that are needed to make recurring payments. Shopping cart gives power to your website and helps in displaying the products offered and checkout page.
The recurring billing platform will handle all the complex subscription-based payments like directly emailing the customers about the expiring of your credit card. The system which is responsible for communication between the recurring billing system or the shopping cart is called a payment gateway.
While choosing the best eCommerce shopping cart platform, you need to consider lots of factors; however, one of the most important factors is recurring payment one. You need to choose the shopping platform that supports the recurring payment.
Even when you are deciding on the recurring billing platform for your subscription Ecommerce service, then you have to keep a few things in mind. You need to choose the system that can help you in handling the recurring payment easily and can help you in sending automatic emails to your customers regarding the expiry of their payment card.