Subscriptions are the fastest growing segment in ecommerce and represent a new concept of buying where a customer can save time and money by receiving products/services delivered periodically as a subscription similar to magazines and newspapers business models with a single order.
A popular example of an ecommerce subscription is the Dollar Shave Club monthly subscription that went viral with millions of customers. Their razor-blade promoting video on YouTube encouraged customers to buy razor blades on a subscription basis for $2 a month. Here is that great promotional video on YouTube.
Why Subscription Ecommerce?
- Convenience to Customers
- Higher Customer Lifetime Value (CLTV)
- Consistent Revenue Forecasting
- Capitalizing on Buyer’s Intent
- Simple Shipping Plans
- Higher Customer Retention
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