Why don’t you still activate subscription app for your store? Have a look at the below graph. Can you believe it or not. If the $10 billion industry’s growth, profitability, and success haven’t enticed you yet, the ease with which you can set up subscriptions on Shopify certainly will.
In 2020, the subscription e-commerce or box market in the United States will continue to overgrow. According to my calculations, the top subscription e-commerce companies made $8 billion in sales in 2020, up 30% from the previous year. As a result, I predict a total market size of $13 billion to $18 billion for subscription e-commerce services.
In this article I am trying to convey the benefits of activating subscription plans and what type of brands bring more revenue with subscription plans.
In this article you will learn:
- Activate subscriptions for your ecommerce store
- Benefits of the activated subscriptions
- Health and wellness brands
- Personal wellbeing brands
- Integrating a subscription program into your Shopify store
- It is necessary to promote and market subscriptions.
Activate subscriptions for your ecommerce store
It is estimated by most of the cosmetics sellers that, at a monthly cost of $10, a customised box of makeup and skincare samples is delivered to the majority of beauty lovers.
In addition, subscription boxes now include razors, coffee, wine, and even t-shirts, among other products and services. Thus, customers pay a recurrent price in exchange for a regular supply of products in an e-Commerce subscription model.
This could include replacing the same or similar goods, as well as curating new and unexpected items. Definitely you can expect a dramatic rise in your stores performance. Just experience the same on your Shopify store by installing the app “Subscriber”.
Benefits of the activated subscriptions
- Subscription-based business models are the future of the Shopify platform- As previously said, a subscription service is used as a payment mechanism by many websites and businesses all over the world. In reality, an increasing number of firms are moving away from one-time payments and toward this recurring income model.
- Customer lifetime value – the automated repeat buy strategy boosts customer lifetime value and earnings per customer while lowering turnover dramatically.
- Subscription income is predictable- One of the most significant benefits of implementing a subscription app service is the income regularity and predictability it provides. Because it is based on a contract, making it simple to forecast future revenue and plan cash flow for other business expenses.
- Subscription boxes thrill customers, whether you’re introducing new products to the market or refilling commodities on time.
Brands of health and wellness
As early as 2019, ecommerce market leaders recognised the potential of delivering subscriptions to their customers by selling health and wellness brands.
As a result, between 2012 and 2017, subscription economy enterprises in the United States grew nine times faster than the S&P 500 (The Standard & Poor’s 500 Index is a market capitalization-weighted index that includes the 500 largest traded firms in the United States), and more than four times faster than retail revenues in the United States by choosing the health and wellness brands.
According to the Subscription Trade Association (SUBTA), 70 per cent of enterprises will be selling health and wellness brands direct-to-consumer subscription services by 2024.
Subscriptions are on the rise due to a number of causes, including “advancements in the tech infrastructure that supports it” and “the subscription model matching incentives on both sides of the equation, giving stability for businesses and affordability and convenience for customers.” To put it another way, both businesses and customers can gain from the subscription model.
Brands of Personal wellbeing
All of us care about our health and personal well being. So, the products required for personal well being is an essential thing in our day to day life. Thus, you can create a subscription plan full of hope, and we can expect assured ROI with profit.
Personal well-being goods indicated monthly growth rates of 26% or more in 2021, according to a recent survey of over 600 subscription brands.
We are seeing the emergence of distinct subscription models at the same rate as the subscription economy grows. Customers that purchase access subscriptions gain access to additional products, services, and experiences that are only available to subscribers.
Integrating a subscription app program into your Shopify store
You may currently have an ecommerce site selling a blend of some commodities and print on demand items.
If you want to integrate a 3-tier subscription program: tier 1 being lowest, tier 2 mid-range price, tier 3 most reliable, and at the same time, the subscription box should do ship monthly, with unique items each month.
At the same time, if you want to offer three months, six months, and 12 months subscription length options.
Here is an efficient way to add that to what you had already got going (If you use Shopify for your platform). The “Subscriber” will help you to do the same-The easiest way to create subscription plans for your products; managing is a relatively easy, most straightforward way for recurring billing without much hassle.
It is necessary to promote and market subscriptions
You should work on the promotion of the subscription added products as well. If you created a subscription and won’t do the advertising, products will not reach your potential customers.
Because subscriptions are a long-term commitment, you’ll need to be more creative with your product promotions and marketing to gain customer trust, reduce risk, and convert opponents.
The following are some excellent subscription marketing strategies:
- Ads — promoting your subscription items using social media and search engine ads to entice buyers to try short-term subscriptions.
- Make subscriptions valuable to your customers by offering free shipping, trial memberships, and discounts.
- Using influencers in your eCommerce marketing plan to promote favorable subscription reviews on social media, blogs, and YouTube is social proof.
- Risk reversal — reducing the potential risk of subscribing to your products by employing referral systems and discount vouchers.
Wrapping up
Subscription models boost customer lifetime value and make it easier for customers to shop with you. You also don’t need a large budget, a tech team, or expensive tools to get started.
All you’ll need is a Shopify store, a subscription app, a seasoned fulfilment partner, and a positive mindset.
Best of luck!
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