Powerful & Profitable Series: The Power of Subscriptions
Discover the three types of subscriptions and how each can help grow your ecommerce business.
The subscription business model is more than a movement. It’s changed the landscape of ecommerce as we know it—and it’s here to stay. As more and more consumers seek out subscriptions, merchants from every vertical are drawn to the business model for its ability to grow LTV, reduce churn, and most importantly, increase recurring revenue for sustainable growth.
But when faced with such a massive opportunity, where should you begin when considering launching subscriptions for your brand? What types of recurring deliveries can you offer your customers, and how can these strategies benefit your business?
In The Power of Subscriptions, we break down the three different categories of subscriptions— curation, replenishment, and access—including examples of how each model can be used to leverage your product offerings. Then, we dive into the ways in which each type can help scale your business so you can set your brand up for success.
What can subscriptions look like for your brand?
Here’s a glimpse into the three subscription types:
Curation: 55% of merchants choose this subscription model, assembling a box of one or more products that are packaged together and shipped at regular intervals
Replenishment: 32% of subscription merchants choose this model (also referred to as “subscribe-and-save”), where the same products are shipped at a regular cadence
Access: The fastest-growing subscription model, access subscriptions comprise 13% of the market, and are used most often for memberships or gated content
Frequently asked questions
What is the subscription business model?
In the subscription business model, goods and/or services are sold on a recurring basis, rather than as one-time purchases. These charges can occur on any cadence—monthly, weekly, annually, semi-annually, or a custom interval. Subscriptions provide businesses with a reliable, predictable recurring revenue stream, as well as the opportunity to get to know their customers over a longer period of time.
What types of products and services can I offer with subscriptions?
Subscription offerings are nearly limitless and include everything from SaaS to streaming services to meal kits to recurring deliveries of practically any product. Some physical subscription merchants curate an assortment of items around a particular theme (curation subscriptions), while others (replenishment subscriptions) offer the same product each time—most often with frequently-used consumables, like coffee or laundry detergent.
How can I use this playbook to grow and scale my business?
Considering offering subscriptions for your brand? Use The Power of Subscriptions to familiarize yourself with the three different categories of subscriptions, including examples of merchants offering each subscription type. Then, learn more about the benefits of each model so you can select the best fit for your business.