Subscriptions

It is a well-known fact that continuous adaptation is a key to a successful business. E-commerce industries prove what works today may not work tomorrow, and webstore owners need to always keep a pulse on what is working or not and be ready to find solutions.

In recent years, the subscription industry has seen monumental growth, with merchants of all sizes and product verticals switching to this business model. With subscriptions, one-time purchases turn into recurring orders. In other words, transactions turn into relationships. Where in the past, one-time orders meant shorter relationships with customers and harder work at a return purchase, today, subscriptions offer businesses the opportunity to engage with their customers on a longer, more predictable basis.

In a recurring order, a purchase is set up to repeat at a predefined schedule, for example once a week, twice a month, etc. Customers then receive their orders on a set schedule rather than having to complete a one-time order again and again.

Taking into consideration the customers’ growing preference for subscriptions, e-commerce businesses are increasingly turning to them, especially for industries that are into replenishable goods, for example home essentials, office supplies, health and wellness products, food and meals, personal care and beauty, etc.

When e-commerce businesses pivot to the subscription business model, they get several benefits.

Benefits for Your Business

• Provide businesses with more reliable and predictable revenue growth.

• Companies are able to forecast monthly, quarterly, and annual revenue on a more consistent and predictable basis.

• Boost customer loyalty and decrease the customer churn rate.

• Businesses can optimize their inventory management – planning, reduce overstocking or understocking, and streamline their supply chain management.

• Generate valuable data insights about customers' preferences, behavior, and purchasing patterns.

Benefits for Your Customers

• Allow customers to receive recurring deliveries of products at a set interval.

• Reduce the amount of manual effort needed to purchase the same items multiple times.

• Save customer’s time that would otherwise be spent researching, shopping, and placing individual orders.

• Customers can change their subscriptions, for example editing products, adjusting delivery schedules, or modifying subscription schedules, allowing them to tailor the shopping experience to their specific needs

Subscriptions, in other words recurring orders offered by Sana Commerce Cloud is a win-win solution. It allows webshop owners to streamline online business processes, increase customer loyalty, and drive revenue growth. Customers love the convenience and savings that come with them. E-commerce businesses have an opportunity to achieve predictable growth with the recurring revenue streams that recurring orders bring.