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Reasons to Opt Subscription Model for eCommerce Business
The subscription-based business model is becoming extremely popular in the modern eCommerce world. The right combination of eCommerce website design, eCommerce website development platform, eCommerce solutions and strategies can help you to take your e-business to great heights.
Because of the numerous benefits offered by the subscription business model, it is expected to gain more popularity in 2020 and beyond.
4 Great Reasons to opt subscription model for eCommerce business:
1. The subscription-based model safeguards high customer retention.
Modern shoppers value time more than anything. Offering weekly/ monthly or quarterly subscription packages ensure high customer retention. The subscription packages allow your customers to buy frequently and get quick scheduled delivery of their desired products.
2. Allow customers to make recurring orders with automatic payments.
Providing flawless customer experience propagate loyalty. Delivering the best customer experience results in repeat purchasing and increased sales. The popular subscription-based eCommerce business model comes with an automatic payment feature. The amounts get deducted from the provided mode of payment, as and when the order is placed at the scheduled date.
Subscription is not just limited to magazines or newspapers anymore.
The trending eCommerce subscription services include:
- Beauty Box Subscription.
- Meal-kit subscription.
- Personal Style box subscription.
- Shaving box subscription
- Book Box subscription
- Netflix Subscription and the list goes on..
3. Ecommerce entrepreneurs can enjoy more predictable revenue.
It is easy to evaluate the subscription box revenue. All you need to do is calculate total subscribers, then subtract cancellations, and multiply the actual subscribers with the subscription cost. With the expected revenue figure, it is easy for eCommerce entrepreneurs to plan future investments in different business verticals.
4. Helps to better manage the inventory.
If an eCommerce store cannot manage its inventory, it can leave a negative impact on the overall business. With a subscription model, managing inventory becomes easy. With the total number of subscribers, calculating the unit of required inventory becomes more accurate. If you are aware of the ‘locked-in’ inventory, managing it becomes much easier.
This is your chance! We can help you!
Do you own an eCommerce business?
Do you think implementing a subscription business model can help your business to reach the next level?
If yes, this may be a profitable idea. Our eCommerce consultant can help you to find your subscription eCommerce niche, design your subscription strategy fulfilling your business objectives, choose the right technology, create and successfully implement subscription eCommerce business plan, launch and refine your model, and grow your business.