Subscription services boost e-commerce growth, expected to reach $1.5 trillion by 2025!

Affected by the epidemic, global e-commerce has ushered in rapid growth in the past two years, and subscription services have gradually ushered in a boom in the e-commerce field.

It is reported that subscription e-commerce is not a flash in the pan . According to UBS's forecast, the "subscription economy" will grow to 1.5 trillion US dollars by 2025. With subscription services booming, many e-commerce companies are adding subscriptions to their products.

However , there are many issues to consider when developing subscription products . For example, how to convince customers to sign up for an ongoing subscription ; how to create a delightful customer experience ; how to expand the product to new markets and regions ; how to optimize subscription pricing and packaging ; how to deal with demand fluctuations and ensure adequate supply , etc.

Although there are still many problems with current e-commerce subscriptions , a successful subscription e-commerce service has become a way for some businesses to achieve more revenue. The advantages of subscription services are mainly in the following aspects :

1. Managing Fluctuating Supply and Demand

E-commerce businesses need to anticipate consumer demand and cope with ups and downs , and subscription services can add a certain degree of predictability. For example, Amazon integrates items that consumers buy repeatedly into its e-commerce products through the "Subscribe and Save" option. In addition to injecting constant revenue into the store , subscription services also help predict future consumer demand.

2. Rapid testing and optimization

To adapt to changing consumer behavior, e-commerce companies need to be able to proactively change their value proposition, pricing, and packaging quickly and continuously.

Subscription models allow sellers to offer consumers a variety of pricing and packaging options, including monthly and annual memberships, curated, subscribe and save, and more, which can provide consumers with the approach that works best for them .

3. Cultivate long-term relationships.

Building lasting relationships with consumers is more valuable to brands than a one-time interaction . Subscription services can foster customer loyalty and improve retention .

Subscription products themselves can also scale with consumer demand . Self-service subscription models can provide consumers with multiple consumption decision options, allowing them to freely choose delivery time, etc. , all of which help to cultivate a loyal customer base .

E-commerce

Subscription Services