HOW TO CHOOSE AN ECOMMERCE SUBSCRIPTION PLATFORM
Everyone loves convenience, and there’s nothing handier than having your milk, newspaper, and shaving razors delivered right to your doorstep. Consumers have been outsourcing their daily shopping needs for decades, and ecommerce just keeps making it easier.
Ecommerce platforms are driving the current explosion in subscription services, and customers are more willing than ever to sign up for regular deliveries of socks, coffee, beauty products, and craft beers, not to mention all the streaming options like Spotify and Netflix.
Because people now subscribe based on want as well as need, ecommerce stores have greater opportunity to create unique experiences that didn’t exist before.
But to do that, you need an ecommerce subscription platform that suits your brand and your customers.
Are Subscription Services a Good Idea?
The greatest ecommerce opportunity (right now) lies in recurring subscriptions. If 4,100 customers commit to a $20 monthly subscription, you’ve got a million-dollar business. This model allows you to spread your revenue across a wide user base, which creates sustainability.
Having 3,000 clients who pay $50 a month is theoretically less risky than having 50 clients who pay $3,000 a month. But whatever the size of your user base, you need a viable product and a solid ecommerce platform that can handle recurring subscriptions.
Which Platforms Support Subscription Plans?
Surprisingly, major ecommerce players like Shopify and BigCommerce don’t offer an ecommerce subscription platform. But several widgets and services can help you set it up.
If you already have a website or Shopify account, programs like Recurly and Maxio will help you design Buy Now buttons and plug them into your current store to take subscriptions.
If you have a developer on staff or can afford to hire one, they can integrate recurring payment solutions from PayPal, Stripe, or Foxy.io. These require a certain amount of coding, but they offer flexibility in how you set up your payment system.
How to Choose an Ecommerce Subscription Platform
Keep the following considerations in mind when choosing the ecommerce subscription platform that best suits your store.
Security: Protecting customer data should be your top priority. Most ecommerce subscription platforms maintain secure databases to store customer credit card information, so be sure to inquire about their processes before signing on with them. Unless you’re using a self-hosted solution, you need to find a service you and your customers can trust.
Cost: Recurring payment systems can be quite expensive, especially if you need to implement one in addition to your standard ecommerce store. Evaluate the different service options to find one that really aligns with your shop to avoid paying for services you don’t need.
Capabilities: Different customers require different payment arrangements. Some prefer to pay on a yearly basis, while others opt for a monthly plan. Make sure whichever platform you choose can handle different payment rates and frequencies so you can accommodate your customers.
Tips for Successful Ecommerce Subscriptions
Subscription programs offer sustainability for you and potential savings for your customers. You can entice them with a discounted rate on subscriptions, such as a percentage off if they pay for several months or a year in advance. This provides you with revenue you can count on.
Keep tabs on when people’s subscriptions are about to expire and incentivize customers to renew through payment plans or special offers if they’re on the fence about resubscribing.
Once they incorporate your products into their lives and know they can trust you with their data, they’re more likely to factor the subscription into their budgets as a must-have.
Choosing an Ecommerce Subscription Platform: Final Thoughts
Once you decide to pursue a subscription model for your store, you have lots to think about. Make the decision about which ecommerce subscription platform you choose easier by using the tips above.
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