The growing popularity of subscription-based ecommerce websites has given rise to new revenue streams for brands and consumers alike. From time-saving services to artisanal products, the subscription model allows users to enjoy the convenience of having their favorite goods delivered right to their doorsteps. In 2023, an increasing number of ecommerce businesses are leveraging this model to strengthen customer retention and boost revenue through cross-sells and upsells.

Since the disruptions COVID-19 caused to the world's economy, shoppers have shifted to more online shopping and favor subscription models that offer a convenient alternative to visiting retail stores. This behavior continues to boost the subscription ecommerce market, with online shoppers increasing overall average order value (AOV) and increasing their loyalty to top-tier brands.

The growth of omnichannel sales has also increased consumer confidence in the subscription-based ecommerce industry. A variety of factors are expected to drive the market in the future, including growing consumer inclination toward personalized shopping and curated items. In the United States, this trend is largely driven by the popularity of beauty and fashion brands’ curated beauty boxes and online retailers' offers of free product trials.

Whether they're getting fresh-roasted coffee beans delivered or monthly makeup kits, consumers have been embracing subscription services that provide them with quality merchandise at affordable prices. These subscriptions allow customers to save on shopping trips and focus more energy on the more important things in life. Moreover, the subscription model is ideal for millennials who prefer to make their purchases with convenience and accessibility.

The overall ecommerce market is expanding at a rapid pace, which has given rise to the subscription-based ecommerce industry. The prevalence of always-connected internet access and increasingly intelligent mobile apps and advertising options through social media have given online stores new channels and engagement points to focus on for repeat-business from their customers. Additionally, the growing global population and limited selections at traditional brick and mortal stores are bolstering the demand for subscription ecommerce services.

Subscription ecommerce businesses are gaining a competitive edge by leveraging strategic partnerships and collaborations to expand their online reach. Using these strategies, top-tier brands are able to maintain high levels of customer LTV and recurring revenue, while attracting new consumers with flexible product offerings and flexible pricing plans.

For example, Bootay Bag is a popular footwear brand that uses a subscription-based loyalty program to increase customer engagement and retain loyal customers. To achieve this, they offer VIP perks like exclusive discounts and access to limited-run styles, which makes the brand feel more personal and valued by their subscribers. This has resulted in their loyalty program members spending 41% more than non-loyal customers. In a similar way, Wandering Bear's subscription-based loyalty program rewards customers with a free tee every month for their continued patronage. With this strategy, the company has been able to increase its revenue by more than 30% and maintain a 91% customer retention rate. In fact, the success of these businesses proves that a strong subscription-based business can be successful in any marketplace. It all starts with building a great website and implementing a robust marketing plan.

If you're interested in starting up a subscription-based ecommerce site, or are looking to add a subscription model to your existing online store, contact E-dreamz today.


« Back to Blog

Ready to Get Started? Contact Us Today to Schedule a Consultation.

Get Started with E-dreamz