The Future Of Subscription-based eCommerce in Fashion Industry
The age of Subscription-based eCommerce is here. The subscription eCommerce has become the new norm, from Netflix to Spotify to beverage delivery and food preparations kits. Therefore it is evident that the Subscription model is to serve digital products and other service providers. As for the eCommerce fashion industry, subscription model fashion eCommerce accounted for 29.5% of fashion retail sales in 2020. In 2021, by reaching $100 billion, it is anticipated to take a sizable chunk out of global predictions!
So, now the big question is how to take advantage of the subscription eCommerce platform in the US? Let’s dive into the future Of Subscription-based fashion eCommerce to uncover the path to success.
Subscription-based eCommerce in the fashion industry- how does it work?
In a subscription-based eCommerce, customers make regular payments for accessing regular services or products. Some of the early birds, such as Spotify, Amazon Prime, etc., have become role models for the new entrants. A big part of the revenue generated is through monthly contributions from loyal customers, who stick to the company for some reason or the other.
Three eCommerce subscription services are commonly recognized in the US today: Replenishment, Curation, and Access.
Replenishment subscriptions: It allows consumers to automate the purchase of necessities. (e.g., Razors, Nappies, etc.,)
Curation subscriptions: It provides new products or highly personalized experiences. (e.g., food, beauty, apparel, etc.,)
Access subscriptions: It provides members-only perks or benefits from lower prices
Subscription-modeled fashion companies you’re familiar with would ideally fit within the Curation subscription.
Benefits of subscription based eCommerce in the Fashion industry
A Subscription-model fashion eCommerce includes many benefits. The best benefits of Subscription-model fashion eCommerce are differentiation, an increase in the returning customers, better predictability, and lifetime value. Besides that, customers will enjoy credit back for additional purchases, free or discounted shipping, unique occasion benefits (birthdays, subscriber anniversary, etc.), discounts on select products or the entire catalog, and more. The fashion eCommerce competition in the US is fierce; embracing the subscription model will accelerate favorable growing conditions.
Does loyalty matter in a subscription eCommerce?
It is really challenging to get back a customer in the conventional retail model once their subscription ends. Further, it is an ongoing process of interacting with your registered customers in meaningful ways. In simple terms, if a customer ditches you right after a certain period, then you haven’t contributed much to earn their loyalty. It could be unsettling if acquiring them demanded more of your funds, work, and dedication. Therefore, it is equally essential to consider bolstering the relationship between your brand and the customer – not simply in the acquisition stage. Make them stay back by offering some of the benefits of the subscription model.
Subscription-based Fashion eCommerce in 2021
As said earlier, subscription commerce is a booming mantra for millions of online businesses. It is the future and will not slow down in 2021. If you have a fashion eCommerce site and dream of conquering new heights, subscription-model fashion eCommerce will put you on the road to grand success. The time is right for small and big brands to take up new responsibilities and push the needed transformation. The subscription model will let the online fashion retail generate long-term revenue. Treating existing customers with care and encouraging them to stay in long-term spending cycles will assist companies in emerging triumphant. This is a key takeaway to consider to comprehend the future of subscription-based fashion eCommerce in 2021.
When exploring subscription-based fashion eCommerce for your company, loyalty and convenience are the first and last rules to adhere to. Besides that, know that customers subscribe only for the following reasons: experimentation, more personalized assistance, and getting added value – through ease. One of the three aspects should help you drive your business to success.
Furthermore, keep in mind the flexible terms, like canceling the order with ease and 24/7 customer service. For further assistance and insights on how to take on the subscription-based fashion eCommerce, talk to our experts. CLICK HERE