Embracing the New Norm Subscription in Ecommerce

eCommerce Web

What is Subscription in eCommerce?

Subscription eCommerce allows consumers to get certain products delivered to them at periodic intervals in exchange for regular payments. The subscription model is being used by the giants of the eCommerce world like Amazon. It is a very lucrative business model as it offers great benefits to sellers and consumers alike.

The concept of a subscription is not a new one. It has been in practice by streaming media services like Netflix since long. However, industries like beauty and fashion have adopted this model quite recently. From buying a Netflix subscription to getting diapers and toilet rolls delivered at consumer’s doorstep on regular basis, the world to eCom

merce is only evolving to make life easier.

According to a survey, a total of 66.4 million US households had a subscription to Amazon Prime in the year 2019. The number of subscribers is only expected to increase in the coming years. It is suggested that this number will go upward to 76.6 million households by 2023. These numbers speak a lot about the success of the subscription model in eCommerce.

Why do Consumers prefer Subscription services?

Consumers are always on the lookout for ease and comfort. They are looking for hassle-free shopping experiences that get them exactly what they need with little effort. Getting a subscription means that they do not have to take out time to order items they need on a regular basis. Subscription eCommerce is gaining popularity because it offers instant gratification, lower prices, and good quality at the doorstep.

Benefits of Subscription Model

Predictable Profit

Once you acquire a considerable number of subscribers, you can be sure of getting a good amount of revenue every month. Since subscribers are bound to pay regularly in exchange for the products of their interest, you can predict how much you will be making quite easily. This is especially useful in the times of pandemic as sales are dropping and buying and selling businesses are plummeting.

Simpler Inventory Management

What is better than knowing exactly how many products you need and when? With the subscription model in place, you will no longer be uncertain regarding replenishing your inventory.

Higher Customer Retention

When a consumer receives items from you every month, it develops a sense of trust and loyalty. Creating personalized experiences for subscribers attracts them to attain more of your services and keeps them tied to you. Once a consumer becomes your subscriber, it becomes easier to retain that consumer since you get a chance to gratify him by meeting or exceeding his expectations every time his order is dispatched.

More Opportunities to Sell

In a subscription model, you are always in contact with your clientele. This gives you an opportunity to market new products and deals. Since subscribers have already put their trust in your services, they won’t think twice before buying more from you as opposed to buying from some other seller, they have no experience with.


Subscription eCommerce is gaining popularity at an exponential rate. Businesses are offering subscription services to their customers with the goal of establishing long-term relationships and attaining recurring profit. If done right, this approach has the potential to grow and expand your eCommerce business tremendously. For more information contact our experts at Bizmia if you are looking to implement a subscription model on your website.

Bizmia provides insights and commerce technology designed to enable retailers to serve their customers across channels.