The Benefits of eCommerce Subscription Model | Article – HSBC VisionGo

Get to know about ecommerce subscription model and the benefit.
Marketing  ·    ·  2 mins read

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What is eCommerce Subscription Model?

Instead of having the customers do the regular payment every time they shop, with the eCommerce subscription model, the customers can receive their products/services on a regular basis. As this ecommerce model is growing fast as a new way of shopping online, it is one of the ecommerce trends nowadays.

We know that in earlier days, subscriptions were limited within newspapers and magazines. The subscribers will receive the new edition newspaper every period of time. But now, the idea of the subscription model has been utilized in most businesses that provide services. Since eCommerce is always evolving and it welcomes any innovation, the subscription model can also be applied in retail. But, how can we implement the subscription model in our eCommerce business?

Three main types of eCommerce subscription

1. Curation or the Discovery subscription model (55%)

The idea is to provide the curated selection of products to each individual subscriber based on their likes and preferences. Since the key of this type is the personalization products curation, your customers will have the enjoyment everytime they unbox and discover new things from your shop.
The benefit of applying this model is that you can provide the curation that your competitors can’t replicate.

For example:  Giving the customers 5 new beauty products every month for their subscription (Glossybox).
Netflix entertainment options (stand-up comedy, TV shows, movies in one pack) is also one of the curation subscription models. 

2. Replenishment subscription model (32%)

This model is providing regular services of the ready supplies to the subscribers. For instance, daily necessities such as toiletries, food, groceries will come to the customers door every period of time after their subscriptions. This benefits the customers as they can save both time and money for every purchase that they need to do before the subscription.

For example, Amazon Subscribe & Save options that give discounts to the customers.

3. Bargain or Access subscription model (13%)

This model is to give the subscriber special and exclusive treatments. It works similarly like a membership card. The way of giving those special treatments depends on the seller. You can provide them lower prices on your products, or you can give the subscribers early-access to your newest products. Most people don’t have an eye to those appealing exclusive perks and it is where you need to tackle.

Benefits of using subscription model

These are some benefits for the eCommerce business

  1. Keep a hold of your customers

By offering the subscription model, it can help you retain your customers. You need to know that the reason they do the subscription is because they know it benefits them in any way. As long as it stays like that, they will always be your customers.

Moreover, you will get no competition, because subscription is a retention-based model where the only competition happens here is the battle between buyers and themselves.

  1. Predict the future sales, revenue, and inventory

With the subscription model, you will be able to forecast your future sale of your products, revenue and inventory. 

Since, we can track down the number of customers who are subscribing to the plan and the period of the subscription, it is easy to predict how many products are going to be sold and you can stock your inventory based on that. 

  1. Easier to manage customer relationship

Since your customers make a subscription, you don’t need to keep the customers onboard for the whole subscription period as long as you provide the things from their subscription. Customer relationships are still important, but the subscription method is making it easier for you.


On the other hand, the subscription model also benefits the customers. 

The reason why the customers are willing to join your subscription is because it is easier than checkout every time they shop, which is a hassle. According to Mckinsey, 24% of customers continue their subscription with convenience as their reason. Taking the replenishment model as an example, the customers do not need to come back and forth to the checkout page every time their daily supplies are used up. 

Moreover, because their subscription is the evidence of their loyalty to the shop, they will get priority when the product is almost out of stock.

Genkiware Ltd
Genkiware Ltd