In the age of limited access to physical stores and lifestyle choices that utilise the Internet for convenience, more and more people are operating online. From on-off purchases to product subscriptions and members’ marketplaces, the subscription eCommerce marketplace is projected to reach a value of $473 billion by 2025.
Subscription-based eCommerce businesses offer online shoppers a convenient and personalised approach to digital marketplaces. Instead of scrolling through endless options, weighing up what’s trustworthy and what’s not, a subscription can provide better peace of mind for customers and ensure a guaranteed return buyer market of shoppers – replenishing supplies or sticking with your brand for years to come.
For those looking to set up an online store, or create a subscription eCommerce business from scratch, we have outlined what eCommerce website development agency Myk Baxter Marketing sees as the benefits of operating a subscription business in 2021, and why it helps provide you with added economical security through recurring revenue streams and an ever-growing membership.
Subscription eCommerce Offers Predictable Revenue
With subscription-based eCommerce, it is easier to predict the revenue streams of any given month. Depending on your product or service, returning users may be re-purchasing your product as often as once a month. This helps you streamline and forecast your inventory planning and makes it easier to invest in growth and development with much less risk.
This steady stream of online purchases also offers an opportunity to bring more cash up-front. With a subscription, users can also pay up-front for a year’s supply or an extended subscription at a discounted rate, bringing more cash flow at any given time that can help buffer and support development, especially in the early stages of a new business.
Subscription eCommerce Offers Cheaper Advertising and Better Loyalty
When you solicit a single sale, it takes a lot of work. When you solicit a membership, it takes the same amount of work, but the returns are extended indefinitely. Attracting new customers everyday can seriously impact your revenue, especially when you don’t have a talented digital marketing consultant, like Myk Baxter Marketing, to help you play it right.
With a subscription eCommerce model, customers make regular payments or are more inclined to use your platform for their next one-off purchase so you can invest less for greater gain.
If managed correctly, a subscription business can create some seriously loyal customers. Loyal customers are repeat customers, and they can spend up to 67% more than new customers. By positioning your businesses in direct and frequent contact with customers, you can make it easier to market new or additional products and services too – increasing revenue further without the heavy advertising costs of regular eCommerce models.
From curated subscription boxes, such as weekly luxury selections of craft beers or eco-friendly skincare products to replenishment models that seek to refill a customer’s order automatically, a dedicated eCommerce consultant like Myk Baxter Marketing is integral to success. Jumping in at the deep end can be daunting, but with a little support, you can make quick returns and begin building your brand identity from day one.
Consultants help you evaluate your product’s viability and clarify your business goals. They can provide advice about pricing plans and identify whether an investment in personalisation or specialised WordPress platforms is necessary or not. Regardless of your product or service, the opportunity to make a subscription business online is possible, and 2021 is the perfect year to begin as the world’s consumers double down on online convenience, regardless of whether the pandemic still rages or not.