We take a look at the growing popularity of the subscription model for eCommerce businesses, including:
Do you get your toothbrushes delivered to your home each month? How about a box of pre-planned meals each week? These are two examples of a business using the subscription model to sell their products.
The subscription business model is when a customer signs up to pay for and receive a reoccurring service or product. This product or service is delivered on an agreed upon schedule, often weekly or monthly, without the customer needing to do anything else. Funds are automatically taken from the customer by an agreed method, and the customer has the right to cancel the subscription should they choose.
Many eCommerce businesses are taking advantage of this business model and it is proving popular with customers. Let's take a look at the pros and cons of doing so.
If you're considering using the subscription model for your online store, take a read through the pros and cons of doing so first.
You've decided that selling a subscription sounds good, but which of your products should it contain? Remembering that your subscription will only appeal to a small number of individuals, should it contain your most popular products, your most expensive products or completely unique products to what you already sell on your website?
There are three important things to consider here:
Having taken into consideration these three points, choosing a product to include in your subscription should become clearer. It needs to appeal to your target audience, they must see it or something related to it as valuable and they must like the look of it.
Paul Harris runs his coffee website The Snobby Collective using Website World's CMS. Along with coffee brewing gear, reusable cups and gift boxes, he also sells one, three, six and twelve monthly coffee subscriptions.
We asked Paul to share some insights with us as to why and how he uses the subscription model for his business.
Our goal is to make a difference in the lives of coffee producers and their communities. To do this we need to take people on a journey. A journey of insight, understanding and change.
A subscription model allows people to have regular coffee deliveries, the buy-in of not missing out on the next part of the journey, learning about the trials and triumphs of the communities and the partners in the coffee value chain that have made it possible.
A monthly celebration of people before profit.
One month teaser. It helps our customers sample our service without obligation or the hassle of cancelling their subscription if it’s not for them.
Also, by having set blocks of 3, 6 or 12 month options, it’s a set and forget. Budgeting is easier as there is no recurring bill to forget, just a friendly reminder that your subscription has finished.
We save our customers time.
We are professional coffee geeks. We seek out NZ’s best specialty coffee roasters, the best ethically sourced coffee currently available and ship it to your door.
We take the guesswork out by supplying the roasters recommended recipe for brewing (always filter as that is our market and gets the best out of the single-origin coffees) meaning you’re getting the best out of your beans, which equates to value for money.
Posted: Monday 21 October 2019