Nowadays, the subscription eCommerce market is growing at a tremendous rate. Online merchants are choosing this business model to take their business to heights. If you’ve opted for the eCommerce web development, then you should definitely add the subscription model to get a better return on investment. That’s the secret of the long-term business success.
What is an Ecommerce Subscription Model?
This model is based on the recurring billing where the customers have to pay on weekly, monthly, or annual basis for the products and services. This is a highly useful model as it provides the regular source of income for the eCommerce store, and enhances the lifetime value of the customers remarkably.
Types of Ecommerce Subscription Model
- Replenishment Business Model- Within this model, the customers can buy essential consumable products they’ve been utilizing
- Curation Business Model- It offers a range of products that matches the requirements of the customers.
- Access/Bargain Business Model- In this, the customers are required to pay a monthly fee for availing the bargained prices on the products and services.
Benefits of Subscription Based Ecommerce Model
Now, you know what is eCommerce subscription model and its types. Let’s explore the benefits of this model for your business:
Better Customer Retention
One of the best benefits of subscription eCommerce model is that it helps in increasing the retention rate. We are familiar with the fact that acquiring and retaining the customers is challenging in this competitive business landscape. You can increase the revenue with upsell and cross sell technique, and increase your customer base as well.
Within subscription model, the services will have great deals and offers to attract the potential customers, and converting them faster. This will significantly boost your sales performance, which is the ultimate goal of the merchants. It will not be wrong to say that this model would be the future of eCommerce industry.
Efficient Inventory Management
If you can easily predict the number of products you’ll require in a month or year, it will result in the proper inventory management. Having subscription feature will provide you a gist of the stock that you need to maintain in advance. This will leverage you to build a powerful plan for the growth and development of your eCommerce business.
To incorporate subscription feature, you should ask from the eCommerce development agency in UK to get it done for your store. They’ve a wealth of experience to deliver you the quality solution at a cost-effective price.