As technology advances, new models and methods are emerging in business. In the past, eCommerce businesses had simple processes for customers, including signing up or logging in, setting up payment methods, and placing orders. However, today, many eCommerce platforms offer subscription plans that comprise additional benefits.
Initially, business owners may have hesitated, but the subscription model has proven successful.
According to statistics, the subscription-based eCommerce market generated a remarkable revenue of around $80 billion in 2021, followed by $120 billion in 2022, and is projected to reach $900 billion by 2026.
Such stats are overwhelming and good for the world economy.
Now, let’s understand what Subscription eCommerce is and whom you should consider as the prime examples of Subscription ECommerce platforms.
What is Subscription eCommerce?
Subscription eCommerce is an online business model where customers continually sign up to receive a product or service. These subscriptions have a specific cost and end date or continue until the customer decides to cancel or unsubscribe from their plan.
The way subscriptions are paid for depends on the platform’s business structure. They may require upfront payment or agree to pay on a predetermined schedule through invoices. Sometimes, they may allow recurring payments to be authorized for your business.
Offering a subscription option is an effective method to boost revenue and increase the lifetime value of customers within a specific area or location.
Must have core components of Subscription eCommerce platforms:
If you plan on running an eCommerce subscription business, you must use specialized tools like subscription management and recurring billing functions to ensure credibility. These tools are necessary to include and should be carefully considered.
Here are a few significant points of features or components that you would like to include in your subscription eCommerce platform:
User-friendly UI/UX – A good eCommerce subscription platform should have a user-friendly and easy-to-navigate interface. This will attract customers and make purchasing quick and easy while ensuring accurate account management.
A user-friendly interface ensures easy order preview, tracking, and cancellation, giving customers a more excellent shopping experience all the time.
Integrations – eCommerce platforms offering subscriptions can seamlessly connect with payment processors, billing software, customer relationship management systems, and eCommerce store websites.
Multiple Payment Method Option – Throughout this blog, you will discover that the leading subscription commerce platforms offer various payment methods, including credit cards, debit cards, digital wallets, and UPI payment options.
Customers must have various options to select the most dependable and suitable for their business needs.
Advanced Analytics – Business owners love analytics tools because they can use them to keep track of the sales data and assess the success of their products and services offered.
Analytics tools on various platforms provide valuable keyword data, such as search volumes for certain words and phrases. This data can enhance the search rankings of your storefront and product pages.
Recurring Billing & Invoices – Subscription-based eCommerce businesses have a cost associated with them. They typically use recurring billing, meaning customers agree to pay for ongoing service or product deliveries for a set period.
Subscription eCommerce platforms offer automatic billing and invoicing features to simplify payments for business owners and customers.
Extended Customer Support – A reliable eCommerce platform prioritizes its customers and establishes a responsive customer support system that actively listens, comprehends, and resolves their concerns promptly and effectively.
Top 6 Subscription ECommerce platforms examples:
In a quickly technology-adopted world, Many eCommerce and software companies started to enable and offer subscription management services to their customers.
Some of the renowned Subscription eCommerce platforms are as follows:
Shopify:
Shopify reigns as the leader in the eCommerce industry, having catered to more than 1.7 million businesses across 175 countries. As a comprehensive eCommerce platform, Shopify provides subscription management services.
- Online storefronts
- Shipping support
- Point of Sale or POS systems
- Multiple payment processing
- 24/7 customer support services.
Shopify’s subscription management has the following feature offerings:
● Multiple recurring payments
● Accepts credit cards and digital payments
● Accepts global payments and mobile wallets
● PCI compliance
● Customizable billing intervals
● Flexible subscription billing
● Membership Features
● Advanced analytics and reporting
● 24/7 customer support and assistance
As a business owner on Shopify, you can choose from several plans that suit your needs. The starting price is $29.99/month, including various payment processing options and an online storefront.
To sell subscriptions on Shopify, you must buy a Shopify plan and add a subscription management application. Once you have done this, you can find free and paid subscription extensions in the Shopify App Store.
BigCommerce:
BigCommerce is another full-fledged eCommerce platform with many service offerings, including:
- Online storefronts
- Point of Sale or POS systems
- Payment processing,
- Mobile app.
BigCommerce provides subscription management features that can be accessed through app integration. Business owners need to add an application to utilize these features.
BigCommerce’s subscription management features offerings include the following:
● Multiple recurring billing
● PCI compliance
● Accepts global payments and mobile wallets
● Accepts credit cards and digital payments
● 24/7 customer support & assistance
BigCommerce’s basic plan costs $29.95/Month. Its app store offers 13 recurring billing and subscription software options with price points from free to $500 for a one-time license plus $99/Month. Many apps also offer custom pricing that combines monthly and transaction fees.
Square:
Square is a famous payment processing company that offers advanced services such as Point of Sale (POS) systems, invoicing, and billing. It is an excellent choice for small and medium-sized businesses. However, it’s important to note that Square is not a complete eCommerce company and does not support virtual storefronts or shipping services.
Square has the following built-in subscription management capabilities that you can access through Square Online Checkout:
● Advanced recurring billing option
● Accepts credit card and mobile wallet payments
● Multiple cash flow reporting
● No additional or extra charge for unpaid invoices
If you’re searching for an affordable option to manage your invoices and payment reminders, Square offers a FREE plan that includes those features. Additionally, Square charges a transaction fee ranging from 1% (with a minimum of $1) to 3.5% plus 15 cents for card-on-file transactions.
Adobe Commerce or Magento:
Adobe Commerce, previously known as Magento, is an open-source platform for eCommerce with advanced features to meet the requirements of an online business. Like Shopify, you can improve Adobe Commerce’s subscription management capabilities by using extensions.
Adobe Commerce Subscription management extension includes the following features:
● Advanced recurring billing
● Multiple payment integrations
● PCI compliance
● Subscription management dashboard for customers
● Custom billing intervals
● Accepts credit cards, digital and global payments
You must acquire a third-party extension service to manage your Adobe Commerce subscription. This service may cost between $299 to $420.
Stripe:
Stripe is a well-known payment processing company allowing recurring payments through Stripe Connect. While similar to Square, Stripe primarily focuses on payment processing rather than providing a complete eCommerce platform with online storefronts and shipping support.
Stripe’s subscription management has the following features:
● Advanced recurring billing
● Flexible and seamless integrations
● Customizable reporting
● Automatic tax calculation
● Accepts online and in-person payments
● Accepts credit card and global payments
● Includes PCI compliance
● 24/7 customer support
With Stripe Connect, you can take advantage of a monthly subscription management plan that is entirely free. Regarding credit card charges, Stripe Connect only charges a transaction fee of 2.9% plus 30¢ for successful transactions.
Recurly:
The Recurly platform offers a comprehensive billing management solution if your business uses the subscription model. It seamlessly integrates with your website, payment processor, payment gateway, and customer relationship management systems, ensuring a smooth software integration process.
Recurly has many things to offer, including:
● Advance Recurring billing option
● Advanced analytics and reporting
● Flexible and seamless integration options
● Automated invoicing features
● Accepts credit cards and other digital payments
● Accepts global card payments and mobile wallets
The Core plan offered by Recurly is priced at $249/Month and is ideal for businesses generating $1 million in annual subscription revenue. The plan includes the first $40,000 monthly revenue, with any additional revenue charged at 0.9%.
Bottom Line:
Technological advancements allow customers to seek faster, safer, and more convenient shopping experiences. Hence, the popularity of subscriptions and eCommerce is on the rise and is expected to continue for the foreseeable future.
Subscription eCommerce offers a range of benefits, including fast delivery, secure payment options, and more, making it an attractive option for customers shopping on eCommerce platforms.
Meanwhile, you can partner with any renowned Shopify Experts Agency and hire shopify developers to build your online store and add Subscription eCommerce solutions accordingly.
