Why subscription model works for Shopify stores?

By 2022, the global subscription e-commerce market is projected to increase from $72.91 billion to $120.04 billion. Moreover, it is projected to reach $904.2 billion by 2026. Compared to this year, that means a $784 billion increase.

Many products and services are available through subscriptions, as opposed to casual purchases, known as the subscription economy. In this sense, it implies a shift from ownership to usership. Popular streaming services such as music and videos are good examples. Generally, it can take any form, from a weekly box of vegetables to a car or pair of jeans that are regularly renewed and repurposed. So it seems that so many businesses can use the subscription model as a payment model for their products or services. So let's answer the main question. Why is subscription great?


1. It has a higher sales conversion rate.

Using a Subscription model can increase your sales conversion rate, but how? Subscription offers usually include a discount, so users are more attracted to buy on a subscription basis because they are attracted to pay less. Also, subscription payment has fewer headaches for users, and they don't have to spend much time buying their recurring shopping.

2. Stable, steady, and predictable revenue stream

When you use a subscription model for your pricing, you don't need to be afraid of your sales every month. You can make sure that there's a stable revenue for your business so it can decrease the risk of sales drop down. You can count on your income and also plan on the money you have and also on your expenses.

3. More customer lifetime value

Customer lifetime value, or LTV, is one of the most important metrics each digital brand should track. The lifetime value of a customer is the amount of money a customer contributes over their entire life as a customer. Since subscribers repeat their buying regularly, they bring a larger LTV to your business, and a larger LTV can benefit your business from different sides. Better LTV means better ROI. Also, it means you can spend more on customer acquisition, and there's no strict limit for CAC.

4. Less spend on retention marketing.

Retention marketing is a complex of activities whose goal is to bring back your customer to your business to buy more and repeat their purchases. But in the subscription model, you don't need to spend on Email marketing, SMS, Push notifications, and other retention marketing channels to return your customer to buy again from you because this process is happening automatically.

5. Turn your customer into a loyal subscriber.

Similarly, a subscription model is not just about completing a project and moving on. In this way, we, as a service provider, can develop a relationship with the client and accommodate their evolving business needs. The client knows you understand their business and have their best interests at heart, which builds substantial trust. Compared to a one-time-buy product, subscriptions offer more touch points between a brand and its customers. So you can make a stronger relationship with your customers.

6. Better inventory management

One of the most critical problems of any e-commerce business and also Shopify stores is determining how much inventory to keep, which can also cost a lot of money. With a subscription model, merchants can forecast approximately how many items they will sell each month, which makes inventory planning and management more effortless. This allows them to anticipate demand and supply better.


Here in subify we help Shopify merchants to start building their subscription payment and Our support team is actively available 24/7 to fix any possible issues you may have. We will help you to benefit from what is mentioned above by properly implementing the subscription model for your Shopify store and making the most of this method.

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