How Subscription-based Model is the Promising Tomorrow of an eCommerce Business?

How Subscription-based Model is the Promising Tomorrow of an eCommerce Business?

The age of eCommerce subscriptions is already here!

Amazon Prime, Netflix, and Spotify are some of the best examples of the SaaS model. Today, subscription-based business models have started to expand to other trades such as fashion and beauty. A well-planned eCommerce subscription model can be a compelling driver of growth for your business. Simply put, a subscription model is one that charges customers a recurring fee for access to a service or product—usually monthly, quarterly, six months once, or yearly.

However, on the flipside, eCommerce subscriptions are about creating powerful bonding with your customers. Loyal customers who understand your product or service value are turned into subscription-model customers to become reliable revenue sources. The subscription model empowers eCommerce businesses with a steady revenue generation, alongside deflecting the chaos of acquisition costs and customer retention challenges.

This post will cover the subscription model eCommerce details to showcase how effective they are to grow your business by converting any product or service into a subscription.

eCommerce Subscriptions and Revenue Generation

Ever since the COVID 19 breakout, a lot of stuff had been ordered online. Many of us wanted to stay safe indoors and steer clear from the hacks of the CoronaVirus. That is not where everything began; even before the pandemic, the eCommerce industry boomed in the US. People loved hassle-free shopping from the comfort of their home: thereby offering the right platform for incredible growth opportunities for subscription-based businesses. Regular online retails heavily rely on more sales for more revenue, wherein subscription models are predictable and offer stable income.

Subscription Economy’s Growth and Predictions

Many eCommerce businesses across the globe have been awakened to the call of the Subscription Economy. We comprehend businesses of all sizes are upgrading their portfolio to include a subscription component. And the support reasons for such adaptations are listed below; see for yourself;

  • 70% of adults across a dozen countries use subscription services
  • 74% of online buyers will subscribe to even more of them
  • From 2013 – 2018, Subscription eCommerce grew by over 100%
  • 70% of business executives strongly support subscription models for commercial growth
  • 15% of all online shoppers have signed up for one or more monthly subscriptions
  • By 2025, it is estimated that the global eCommerce subscription market will attain the $246.6 billion mark.

Obviously, the subscription-oriented business model stands to benefit tremendously. Having furnished the details above, here are a few core essentials that you need to know whether you’re beginning a subscription business entirely from scratch or simply trying to optimize your existing one.

eCommerce Subscriptions – The Latest Mantra For Different Industries

Reinforcing together industry, sector, and category data presents a more holistic picture of the hottest subscription areas and those untouched and ready for disruption. For example, the SEI suggests the IoT sector (construction, healthcare, technology, energy, and transportation, which sells recurring digital services through hardware, is the fastest-growing subscription sector.

Involving eCommerce Subscriptions Into Your Strategy

Before getting started with your eCommerce subscription offerings, it’s essential to learn why brands incorporate subscriptions into their existing products. There are three aspects that you need to look into, and they are differentiation, segmentation, and stability.

Why do so online buyers subscribe to products or services? At least, they don’t enjoy money drawn from their bank accounts every month or yearly. The factors that constitute the reason surround exploration, personalization, and value.


It is the right time to capitalize on the advantage by turning any product or service into a subscription. The present scenario affirms that consumers are subscribing to products that have historically not been offered as subscriptions. By building a unique selling proposition for your product or service, you can easily win subscriptions that will serve as a lifeline to your business success. If you wish to implement subscriptions in your online store, reach out to us; our experts will help you through your subscription goals.