Subscription-Based Ecommerce

What Is Subscription-Based Ecommerce?

In subscription-based ecommerce, customers purchase an initial subscription package from a brand, which is often for one, three, six, or 12 months. Then, each month, the brand processes a payment and the consumer receives a curated box of goods in the mail.

Streaming services, for example, offer monthly subscriptions through which customers pay a monthly fee for access to the TV shows and movies on a specific platform. These ecommerce models typically give consumers the flexibility to pay for their subscription in the best way for them, and many brands choose to incentivize customers with discounts for paying for a full month or year at once.

In this way, subscription-based ecommerce gives customers recurring access to the products and services they love through flexible payment options. Brands get regular revenue streams and opportunities to build customer loyalty and engagement by offering special promotions and exclusive events.