Shopify Subscriptions: All the information you need to know

Convenience, more than anything else, has come to characterise e-commerce over the past ten years. Customers desire quick and flexible ways to shop as next-day delivery and pay-later alternatives become more commonplace. Therefore, it comes as no surprise that subscription boxes are growing in popularity.

Over the past few years, subscription e-commerce has expanded, offering anything from pet food to cleaning supplies. As a result, 75% of direct-to-consumer enterprises are anticipated to offer subscriptions by 2023, with the subscription market forecast to be worth $473 billion by 2025.

However, subscription boxes are about more than just convenience. The subscription market also offers clients a fresh, enjoyable way to interact with the things they love, including curated beauty boxes, mystery book packages, and surprise recipe kits. Instead of going online to purchase a specific item, shoppers may find products and brands in a lovely, curated package that is delivered to their doorstep. It’s similar to window shopping without having to go into the stores, which has proven more crucial than ever amid the global epidemic.

Subscriptions are the ideal option to increase your revenue in 2021 because of the rising cost of acquisition and the severe competition in the digital market. For this reason, we’ve created this helpful guide for starting your own subscription service on Shopify. It includes suggested apps, links to tutorials, and an explanation of the various subscription model options.

Why do I need to subscribe?

Customers may stock up on new products in a simple, affordable, and frequently enjoyable way with subscriptions. However, they’re not just fantastic for customers; the brands who offer them also benefit greatly from them.

This is why.

1. Repeating income

You may establish a regular revenue stream through subscriptions, which can give you some security in a cutthroat market. Even better, you can use that cash to invest again to promote expansion.

2. Customer loyalty

You don’t need to worry about converting your first-time clients into devoted customers because subscriptions automatically achieve that because of their recurring nature. That’s a major issue considering that recurring customers spend, on average, 67% more than new ones.

3. Reduce your acquisition costs

While traditional company models necessitate ongoing marketing expenditures to bring in new clients, subscription revenue reduces your dependence on client acquisition. Even though you’ll still need to attract new clients to keep your subscription service expanding, you won’t have to devote all of your budget to it, which will free up money for other investments.

4. Cross-selling and upselling

A distinctive technique to establish a devoted, trustworthy bond with your customers is through subscriptions. With this already-existing connection, cross-selling and upselling become considerably simpler, allowing you to promote more products to your subscribers.

Selecting the appropriate subscription model

The first step in deciding what kind of strategy works best for your brand is to consider starting a subscription service on Shopify.

The three main categories of e-commerce subscription models are:

Refill: Subscriptions that automate the purchasing of necessary goods—often at a discount—are designed to save customers money and time. Pet food, vitamins, razors, tea, and coffee are a few common items with reorder subscriptions

Curation: Instead of emphasising discounts, curated subscriptions seek to surprise and excite customers with a variety of brand-new and customised items, making purchasing a more enjoyable experience. Food, drink, cosmetics, clothes, book, and stationery boxes are a few examples of popular curated subscriptions.

Access: Subscriptions to access services are all about exclusivity. Access members pay a monthly fee in lieu of receiving a physical subscription box in exchange for lower rates and member-only benefits (such as early access to sales).

The replenishment model is an excellent place to start if you’re new to subscriptions. Refillment services have higher conversion and retention rates than other types of subscriptions due to the nature of the commodities involved, which makes Amazon’s Subscribe & Save the most well-known subscription service worldwide.

Not all items, meanwhile, are suitable for routine refilling. If you’re not working with perishable or disposable goods (like soap, cleaning supplies, pet food, etc.), a curation or access subscription would be a better option.

On Shopify, how to start a subscription service

A third-party app or a specially created subscription solution are the two options for adding a subscription service to your Shopify store.

Subscription apps for Shopify

Choosing a subscription app from the Shopify App Store is a simple method to start your own subscription business if you lack development resources. PayWhirl Recurring Payments, Bold Subscriptions, Subscriptions via ReCharge, and Ordergroove are a few choices that have received favourable reviews.

On Shopify, creating your own subscription service

Shopify recently launched APIs and technology to enable partners and developers to build subscription experiences in Shopify’s checkout, capitalising on the expanding subscription market and removing the need for companies to choose between utilising Shopify Checkout and providing subscriptions.

Check out the Shopify Subscription APIs and Product Subscription Extension if you’re considering creating your own subscription service on the platform. On Shopify Tutorials, you may also discover thorough developer documentation, including instructions for transferring current subscription contracts to Shopify.