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Subscriptions can boost ecommerce sales

February 14, 2012

Some ecommerce businesses have experienced success by offering customers product subscriptions on their websites.

Some ecommerce businesses have experienced success by offering customers product subscriptions on their websites. Merchants that want to make the transition to subscription-based services from a traditional retail model should offer products that meet customers’ needs, reward customers for their loyalty and avoid focusing on the subscription aspect, which might seem like a model too similar to magazines, according to Practical eCommerce.

A web-based business called PetFlow that offers pet supplies on subscription has experienced major growth using the business model. The business expects to have more than $20 million in sales during 2012, the source reports.

“The Holy Grail is having a customer for life, and having that customer buy from you repeatedly, and I think the only way that you can do that is by knowing your customers and seeking to serve them.” PetFlow co-founder Alex Zhardanovsky told Practical eCommerce.

Subscription services offer conveniences to both consumers and retailers. Customers have the benefit of a quality product being delivered to them regularly, saving the hassle of going out and shopping or even re-entering credit card payment information on a website. Merchants gain from recurring payment processing that guarantees steady revenue will be flowing through their online store. 

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