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.Back To Blog