What is a subscription model?

A subscription model is a sales method in which the customer does not have to make a new purchase each time. They sign up once, choose a frequency, and the store makes a delivery or renews access and processes payment at regular intervals. For the customer, this means convenience and usually a discount; for the store, it means recurring revenue that can be predicted in advance.

There are three types commonly found in online stores. A replenishment subscription regularly delivers the same consumable product, such as coffee or supplies. A curated subscription is a box that the store puts together for the customer at regular intervals, often with an element of surprise. An access subscription provides membership, discounts, or content in exchange for a fixed fee.

The subscription model works both ways. The customer commits to buying, and the store commits to delivering, so before launching, you need to set a loyalty discount, its upper limit, rules for changing orders, and the number of pauses allowed, as well as ensure adequate inventory and set up recurring payments.