Ecommerce subscription options have become a reliable, predictable part of a solid strategy involving multiple online revenue streams. It can be set up as a recurring delivery of selected products at predetermined intervals, or it can be the primary revenue model in the form of subscription boxes.
As a service, it’s evolving from a perk into tomorrow’s customer expectation. As a source of profit, it’s an opportunity for coveted recurring revenue.
Online stores have discovered subscriptions increase sales by:
- Changing site visitors into site subscribers.
- Automating and encouraging customer loyalty.
- Increasing the perceived value of a store and its products.
All of which results in a more stable bottom line.
Quick Facts & Stats About Ecommerce Subscriptions
The below infographic offers insights and tips on the global demand for ecommerce subscriptions. We’ve added some Canadian-specific data to provide a more relevant overview.
- 70% of online adults (in over a dozen countries) use subscription services.
- 15% of all online shoppers have signed up for one or more monthly subscriptions. 74% of online shoppers have more than one subscription.
- Ecommerce subscriptions grew 100% between 2013 and 2018. The global online subscription market is expected to reach $246.6 billion by 2025.
- 70% of ecommerce executives are convinced subscription models fuel growth.
According to a recent report from Canada Post, the following categories of subscription boxes were most popular among Canadians:
- 28% Meal Kits
- 25% Food/Beverage
- 22% Beauty
- 13% Health & Wellness
- 12% Clothing
- 10% Books
- 7% Hobbies
- 7% Lifestyle
- 7% Pets
- 6% Children
- 5% Tech/Games
- 3% Jewelry
Automatic Recurring Deliveries of products (like Amazon’s Subscribe & Save) are also popular among online Canadians for:
- 32% Beauty Products
- 28% Non-Perishable Groceries
- 27% Health
- 17% Baby Products
- 15% Office Supplies
- 14% Pet Supplies
- 13% Perishable Groceries
- 3% Cannabis
Managing recurring payments for subscriptions is easy with the better ecommerce platforms, such as Shopify Canada and for WordPress, WooCommerce. Both have several subscription app options, so you can choose which one will best suit your particular subscription revenue model.
Shipping costs are always a concern for Canadian small businesses in ecommerce. The cost of shipping subscription boxes is a huge consideration for those considering it as their primary business. Luckily, clever shipping solutions are popping up around the world, including here in Canada. Check out 12 Ways to Slash Shipping Costs for Canadian Small Businesses for tips that could save your online business from folding under the weight of shipping expenses.
Are you interested in the potential of an online subscription revenue model? Please comment below or join us in the Online Business Canada Facebook group.
Infographic provided by TheCommerceshop.com via InfographicJournal.com
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Marie has an M.Sc. in Marketing and a certificate from the Ryerson Digital Media program. She's enrolled in one course or another most of the time and is always in the middle of a new business book (or three). Marie enjoys writing, traveling and volunteering at local events & trade shows.