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A Shift Towards Subscription-Based Models in E-commerce

Today, we are operating in a very challenging period. And even though there are plenty of forecasts and tips on how to better handle your business during the 'crisis' times, we are still not 100% sure about the outcome. However, as you might have noticed, our new world, routine and tools that we use now consists of a VR, online meetings and video conferences, online shopping and e-learning.
According to recent statistics, Global Subscription E-commerce Market is anticipated to reach the market valuation of US$478.2 billion by 2025 expanding at an astonishing CAGR of 68.0% in the course of forecasted period (2019-2025) from US$ 13.2 billion in 2018.
In addition to daily lives, other areas have undergone dramatic changes and subscription eCommerce is one of them. The market is expected to be driven by various growth factors such as the increasing use of subscriptions among millennials, rising popularity of online streaming services, expanding internet penetration, low cost of subscription boxes, etc. Although the technology has gained significant traction over the past few years, online users have taken time to accept and adopt it in their daily life. Lack of consumer acceptance towards technological advancements has remained a huge challenge for the eCommerce ecosystem in general. But prevailing conditions accelerated processes and created shifts in the eCommerce sector.

Why the Subscription Commerce Is a Part of E-commerce Evolution?

Over the last few years, subscription-based eCommerce business has gained much attention due to its growing success. And this year it boomed like never before.
In post-pandemic times, the regular demand of various products and services for daily use is growing rapidly, so the eCommerce had to adapt quickly. Continued changing consumer habits has lured most of the Americans to check out number of subscription boxes of different kinds from popular categories such as food, beauty, fashion, grooming and pet products. In addition, with more than 70% of the subscription of companies based in the region and internet services booming endlessly, North America subscription e-commerce market has fostered remarkably. Europe and Asia Pacific, are also observing a drastic growth in subscription e-commerce market on services such as beauty and healthcare, entertainment and food/beverage.
The model works well because it saves user's time and reduce the amount of physical visits to the store. Also, The simplicity of a monthly product or service is appealing for many consumers and companies. Especially with millennials who place higher importance on personal experiences, emotions, clarity and flexibility.
The key idea behind offering a subscription service is to convert one time customer to long-term customers by giving them continuous access to service that they always need. They are mainly offered weekly, monthly, annually.

Subscription commerce will definitely change and affect the way how an average consumer experiences online shopping process.
We at BTB have picked 3 key products that we provide on a subscription basis, which are:
According to our observations, internal data and years of experience, these are the most valuable and effective tools that can be used on a regular basis (e.g. monthly/yearly).
Please note that moving into subscription-based model requires careful strategizing and planning and can not be applied to all businesses with no exception. However, if you are absolutely sure that you can bring a subscription element into your business, you might find an excellent opportunity to expand your online shop in a way that can provide much higher levels of revenue and build stronger relationships with your customers.

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