The digital shopping world is rapidly evolving, and eCommerce subscriptions are at the forefront of this change. Unlike traditional one-time purchases, subscriptions offer a mix of convenience and personalization that resonates with modern shoppers. This approach is reshaping buying habits, providing customers with effortless and tailored shopping experiences. For businesses, it means a new way to grow, bringing in a steady and more predictable stream of income
Among the platforms facilitating this shift, Shopify stands out as a leader, offering robust tools that empower merchants to seamlessly integrate subscription-based models into their online stores. At the forefront of this integration are applications like ReCharge and Recurring GO, each offering distinctive features and functionalities to cater to the diverse needs of Shopify merchants.
Recent statistics highlight the significant growth of this sector. In 2019, the eCommerce subscription market in the USA generated approximately $16.49 billion. This figure has shown consistent growth, reaching an impressive $38.2 billion by 2023. Notably, these numbers exclude data from the Q4, indicating the strong likelihood of the market surpassing the $40 billion mark by the year’s end.
Understanding Ecommerce Subscriptions
An e-commerce subscription company sells its products on a recurring basis online. Typically, it sells and ships products to customers on a monthly or quarterly basis. Nowadays, there are companies that focus their entire strategy only on building subscriptions and there are businesses that combine the one-time purchase feature with subscriptions. The most advantageous aspect of implementing a subscription model is its simplicity and automation. Once activated, orders are seamlessly processed and directly integrated into your Shopify account, requiring minimal oversight and ensuring hassle-free management.
From our portfolio, we can mention the notable VitaSupport MD that leverages the power of eCommerce subscriptions! In July they moved from an eCommerce subscription app that was removed from the market and was no longer fully functional, to an entire brand new app, starting to build the eCommerce subscription from scratch, and in less than 4 months, we managed to bring 272 new subscriptions!
We transitioned the business from primarily relying on one-time purchases to implementing a robust solution where a significant portion of revenue is now derived from eCommerce subscriptions. It’s incredibly reassuring to have a predictable, estimated revenue stream each month, thanks to the efficacy of the eCommerce subscription app
From the standpoint of customer experience, eCommerce subscriptions are exceptionally user-friendly. Customers have the complete freedom to initiate or cancel their subscriptions at any time directly through their account. Furthermore, as a Shopify store owner, you possess comprehensive control over managing these subscriptions, including the ability to cancel them upon client request.
Subscription apps for Shopify
Shopify offers a wide array of subscription apps, yet in this article, we’ll concentrate on two notable ones: ReCharge and RecurrinGO. We have extensive experience with both apps through their implementation for our clients, giving us a deep understanding of each one’s unique features
ReCharge app is designed to enhance Lifetime Value (LTV) growth from multiple perspectives. It enables you to craft seamless shopping experiences that not only boost revenue but also foster lasting customer relationships. With ReCharge, you can create:
Subscriptions: Develop and expand your recurring revenue streams effectively.
Loyalty: Offer exclusive rewards, benefits, and unique experiences to engage and retain customers.
Bundles: Provide a selection of curated product bundles, or give customers the option to personalize their bundles.
Flows: Customize the customer journey to address key scenarios efficiently, including strategies for both passive and active churn recovery.”
- Customer Portal – Customize the interface of the store’s customer portal
- Flows – Personalize the customer journey
- Robust and Flexible API – Fully customize your subscription experience
- Bundles – Sell curated product bundles, or let shoppers customize their own
- Unified Checkout – Single checkout process no matter the contents of the cart
One potential drawback of the ReCharge app is its pricing structure. While we began using ReCharge when it was a free service, it has since transitioned to a paid model. The standard plan is currently priced at $99 per month, with an additional charge of 1.25% plus 19 cents per transaction. For those needing more advanced features, the Pro plan is available at $499 per month, with a slightly lower transaction fee of 1% plus 19 cents per transaction.
Source: Recharge Subscription – Shopify App Store
Another aspect to consider with the ReCharge app is its method of enabling subscription functionality. It adds additional products to your catalog labeled as Autorenew. This approach, while functional, can lead to some clutter in your product catalog.
Moreover, ReCharge offers the feature of creating unique discount codes for subscriptions. However, it’s worth noting that this functionality can also be achieved using Shopify’s default discount features.
Additionally, the integration process with ReCharge is not entirely seamless, as it requires modifications to your site’s theme code, which might be a consideration for those seeking a more straightforward setup.
We recently discovered RecurrinGO, an impressive app that caught our attention during our search for subscription solutions. Our criteria included finding an application that would facilitate the creation of subscriptions with discount options, flexible scheduling, and, importantly, lower transaction fees.
- Automatic charges and recurring invoices to increase your revenue.
- Pay-per-delivery & prepaid subscriptions, flexible discount options.
- Intuitive customer portal designed to retain and engage your subscribers.
- Analytics to get insights from subscription rules and customer subscriptions.
- Cancellation and dunning management to reduce churn.
As highlighted earlier, one of the appealing aspects of RecurrinGO is its cost-effectiveness. The app offers a range of plans tailored to different business needs, each with its own pricing structure. It has 4 plans:
Since we started using RecurrinGO, our experience has been smooth and trouble-free. The integration process is remarkably straightforward – all it takes is setting up the functionality within the app and enabling it in the theme. Additionally, we’ve found the support team to be exceptionally helpful, further enhancing our overall experience with the app.
Enhancing Ecommerce: Combine Subscription Models with Email Marketing Automation
A standout feature of both ReCharge and RecurrinGO is their integration capability with email marketing tools. In this article, we specifically explore the synergy between eCommerce subscriptions and Klaviyo.
Klaviyo is an exceptional platform that enables the creation of various automation strategies to grow your business. For those who are not yet familiar with Klaviyo and the pivotal role email marketing automation can play in business growth, we invite you to book a call with us for a more in-depth discussion and insights.
In Klaviyo you can create special flows that will target the customers who choose a subscription product:
Subscription Started: This is an educational flow, the target is to thank the customer for choosing your subscription program and offer more information about how he can manage the subscription
Browse Abandonment: The Browse Abandonment flow targets the customers who saw a product but didn’t add it to the cart. You can develop this flow to offer more information about the subscription product that was viewed and encourage the customer to make the purchase.
Checkout Abandonment: This flow targets the customer who left a product at the checkout. You can leverage this flow by enabling 3 emails. The first one is to offer relevant information about the product, after 1 day, if the customer didn’t purchase, another email will be sent to offer an incentive, and the third email, is the last reminder.
Subscription Cancelation: This flow targets customers who decide to cancel the subscription. The purpose of this flow is to find the common reasons why the customers chose to stop the subscription. You can also win back the customers by offering them an incentive for renewing their subscription.
Loyalty Subscription: This flow targets the customers who started the subscription a long time ago, you can send them an incentive to thank them for their purchase and for trusting your company.
Source: Checkout Abandonment flow for eCommerce Subscriptions
As we step into 2024, it’s the perfect moment to grow your business by embracing the power of subscriptions. Picture the transformative impact of combining one-time purchases with a subscription model, where you cultivate a loyal customer base that consistently chooses your brand.
Ready to set your business apart? Schedule a free consultation call with us. We’re committed to helping you unlock the full potential of your business.