Subscription eCommerce is a fast-growing way of buying products and services online. A growing percentage of shoppers have signed up for subscriptions, receiving products and services on a regular basis. The subscription model owes its success to the optimal balance of value it provides to both the company and the customer. It provides customers with a convenient and budget-friendly way to buy goods or services, while businesses benefit from revenue through recurring sales.
The subscription eCommerce market is growing. Research by McKinsey has shown that between 2011 and 2016, subscriptions grew by more than 100 percent a year. Today, many industries and businesses fully embrace subscription models. But how do subscription models work, and how can they be managed?
This whitepaper aims to distinguish between various subscription models, lay out the benefits and explain how subscriptions can be managed in a subscription management system.