// Subscription models can help you make more income - CanCode.io | eComm/Web/UXUI Design & Development - 2023 Blog Details

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Subscription models can help you make more income

If you've been shopping on the internet for a while, subscription models have been on the rise. This is because they're a good idea. They're good for both the customers and the stores.

Part of this chapter will cover the many types of eCommerce subscription models, the benefits and drawbacks of offering them, and how businesses can get started with this type of business plan.

Here, we'll talk about the different types of eCommerce subscription models, the benefits and drawbacks of using them, and how businesses can start using them.

Subscription Model

In the world of e-commerce, subscription models are common ways to make money

The COVID-19 problem has led to a surge in memberships because people stock up on things and make sure they have what they need if shop supply chains get messed up again. When the epidemic hit, 30% of people signed up for subscription boxes so they could always have the supplies they need.

Subscriptions can be broken down into three main groups: replenishment, curation, and access to a service or product.

Subscriptions that are renewed

It is possible to sign up for regular deliveries of things that you like to get, which is called a subscription. There are a lot of ways to get these things. Subscribe and save plans, where you pay less each time you get an item, or subscription boxes are the most common ways to get them.

Curation of subscriptions

Each week or month, you'll get a different set of things that have been carefully chosen and put together by a professional.

Get into subscriptions

A subscription service gives people who sign up access to a lot of special products, discounts, and other things. Online, it's a wholesale club that sells things for a low price. A company like Thrive Market and another one like JustFab both use this strategy. At Thrive Market, you have to pay a fee to be able to look at organic products that are cheap and easy to find. Shop at JustFab if you don't want to pay for a membership. The prices are higher, but you don't have to pay for them.

With 55 percent of all subscriptions, McKinsey & Company says curation services are the most popular. Restoration subscriptions make up 32 percent of all subscriptions, and access subscriptions make up 13 percent.

cancode.io gift option app ecommerce tips User experience UX

Source: HelloFresh

Advantages of Subscription-based businesses

Is there any reason why you would want to use a subscription model for your business? This is why.

Subscriptions increase the value of a customer over time.

This one may seem obvious, but it's still important to talk about, even if it is. They spend more money in the long run if they sign up for a subscription than if they buy one-time items.

Subscriptions are a way to make steady money.

Subscriptions help you figure out how much money you'll make because they let your customers sign up for recurring services through your business. You'll be able to figure out how much money you can spend on marketing each month if you know that subscriptions will bring in $30,000.

In the long run, subscriptions strengthen customer relationships and make them even better.

Having subscriptions gives you the chance to build long-term relationships with your clients. Because you'll be in touch with them often, you'll have more chances to upsell or cross-sell to them. They are more likely to buy from you again because they already know you.

So, you can get more useful information through subscriptions. You know more about the things your customers like and how often they buy them. People who look like your customers can be used for search and social media ads. You can do this by dividing the audience into groups.

As a business that wants to build long-term relationships with its customers, subscriptions are a great way to do this. As a result, your bottom line will be better.

cancode.io gift option app ecommerce tips User experience UX

Source: Beer Cartel

Add a subscription service to your business model

It could be good for a lot of businesses to start selling subscriptions, but it might not be right for every one of them. A subscription service is a great idea, but you don't know how to start. Here, we'll show you how to do it.

Step 1: Find out what you need to know.

During this stage, you'll take a very close look at your customer data. Can you offer a subscription and savings plan for things that people buy over and over again? Is there a combination of products that your customers usually buy? Determine if there is anything unusual about the way your clients buy things, and if so, look for it.

Another way to figure out what subscriptions your customers would like is to ask them. Open-ended questions are a great way to come up with new ideas that you hadn't thought of before.

Step 2: Take a look at your competitors.

Do any of your competitors offer a paid service? If so, how? In order to find out where the opportunities are in your product category, you need to do a lot of research.

After you finish these two steps, you should be able to figure out how much your subscription will cost.

Step 3: It's time to run a test.

The best way to find out what your customers think about your subscription plan is to use your most loyal customers to ask them. It's possible to give a free trial or a big discount to a small group of people. If you want, you can then do a survey and make changes to your product based on what people say.

Step 4: Find the best management tools for your company.

Subscriptions take a lot more time and effort than one-time buys. For example, if you use ReCharge, things could be easier.

There is still a lot of work to be done even after your subscription is set up. It's important to keep track of your churn rate, bring in new customers, and give value to your subscribers.

Subscription problems that need to be fixed

Subscription models in eCommerce have both good and bad things about them. Now, let's look at the good and bad things about them. Here are four of the most common things you'll have to deal with, and how to deal with them.

When people stop paying for the service, the churn rate is very high

Some 40% of eCommerce subscribers, according to McKinsey & Company research, no longer use them. Why? Competition and not enough new things.

People buy meal kits as a way to save money. People get bored and want to try something new, which is understandable because so many restaurants give big discounts to people who aren't regular customers. This is because people get bored and want to try new things.

Here are some ways to cut down on churn:

• Make sure that you keep giving people extra benefits and value.

• Keeping your product line up to date is important.

• Rather than canceling subscriptions, make it possible for customers to stop or skip them.

• When a customer cancels, write down what they say so that you can figure out why they did it.

Some customers don't understand how the subscription model works and don't like the service because they don't like how it works. Putting a FAQ section on your website is the best way to teach people about subscriptions. If you want people to cancel at any time, make it clear and give them instructions on how to do it, too. Make sure your FAQ is simple and clear, with no jargon or technical terms.

Getting more people to sign up for your subscription

People who already use your service are the most likely to sign up for it, but what happens when you run out of people?

Think about it this way: For 84 percent of people, friends and family are the best sources of information. In the end, you want your customers who are happy to spread the word about your business. This can be done in two ways:

• Make it easy for people to spread the word about your business: If someone signs up through a referral link, give your customers a discount.

• The more positive reviews, testimonials, and social media posts that people write about a brand, the more likely they are to trust it and buy from them. When you can, try to use them in your marketing.

Management of subscriptions

Many people find it hard to keep track of subscriptions. Choose a partner or service that has been around for a while and is easy to use. ReCharge, for example, is a management service that can be easily integrated with more than 30 other services. This makes it a good choice for people who want an all-in-one service.


It doesn't matter what kind of business you run, subscriptions can be a good thing. You can go a long way toward making your clients happy and making more money for your business by choosing a few things or making a package.


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