What is an ecommerce subscription model or subscription model? The subscription model is a type of online store where the consumer pays a subscription every so often (every week! every month! every two months! …) to receive a series of products directly at home through a periodic purchase or subscription. up to current streaming services.

It is a kind of e-commerce with subscription sales ! therefore! and differs from the classic online shop because the sending of products is constant over time in exchange for a subscription fee paid by the member. We can summarize the subscription e-commerce as:

An evolution of e-commerce! a customer loyalty through registration or periodic subscription for the purchase of a product or service that does not exhaust its usefulness in the first purchase! but that requires continuous renewal or updating.

All existing Subscription Business Models make extensive use of loyalty tools such as point collections! gifts! discounts and other loyalty mechanisms . At the same time! they increase their contact database ! which is very vertical in a specific sector! making it increasingly attractive to large brands. Great attention is also paid to Social Media Marketing.

Does the Subscription Model in E-commerce Work?

Why do subscription models work? There are many reasons:

Often the price is an incentive : a lower vk database cost for periodic rather than occasional purchases.

Sometimes someone tries to take advantage of the discount for the first purchase by agreeing to subscribe and then thinking of “unsubscribing” shortly after or by accepting a free trial period of the Subscription Business Model in question and then ends up forgetting to cancel the subscription (which is very often linked to a credit card) or gives in to laziness – in the case of “negligible” monthly expenses – and no longer fills out the cancellation form.

Examples of this include Amazon itself for its free shipping service through Prime membership! Mubi for streaming! and many other websites and e-commerce sites.

Sometimes someone tries to take advantage of the discount for the first purchase by agreeing to subscribe and then thinking of “unsubscribing” shortly after or by accepting a free trial period of the Subscription Business Model in question defining a successful promotional strategy and then ends up forgetting to cancel the subscription (which is very often linked to a credit card) or gives in to laziness – in the case of “negligible” monthly expenses – and no longer fills out the cancellation form.

Examples of this include Amazon itself for its free shipping service through Prime membership! Mubi for streaming! and many other websites and e-commerce sites.

But what is a Subscription box business model?

This business model based on Box Subscriptions leverages the first of the aforementioned “persuasion” tools: the surprise effect. This type of Subscription Business Model is highly appreciated in the cosmetics sector but -today- it is also spreading in many other sectors (artistic! food! accessories! etc.).

The subscription e-commerce business lack data model based on “BOXES” mainly uses 3 levers to its advantage:

• The surprise effect/unjustified gift . Very “psychological” value that generates “dependence” in its form of “source of emotional well-being” that leads us to think we deserve a gift; or with the key of waiting! mystery! expectation.

• The convenience pack ! that is! a “multipack” BOX in which the price of.

Tasting . Often Subscription box business model is also based on the “Trial Kit” effect to be able to try more products without having to buy a longer lasting format each time. Often in the Box are inserted one or more “gifts”/Testers/Samples to also promote related products.